11 FEBRUARY 1938, Page 1

Teruel Again News from the Aragon front this week seems

to leave no doubt of the severe reverse suffered by the Government ; a message from Bilbao states that, at the end of the three days' heavy fighting which began with the renewed Nationalist attack at the week-end, the Nationalist victory in the Sierra Palomera, north of Teruel, is complete. The Government is reported to have lost large stores of war material and 20,000 men killed and wounded ; 2,000 men of the crack Karl Marx division are raid to have surrendered. The area occupied by the Nationalists covers 115 square miles, and their advance flattens out their front from Teruel north to Fuentes de Ekro. More important, their victory removes the Republican threat to the Nationalists' communica- tions with Saragossa and prevents the possibility of the Republicans advancing along the Saragossa road to an attack on that city. Some indication of the severity of the Govern- ment's losses is given by the statement that they have suffered the biggest disaster as yet on the battle fronts of central or Eastern Spain. Barcelona admits some of these losses ; but the Government also claims important victories in Andalusia in an offensive against Granada.