1 JANUARY 1937, Page 5

NEWS OF THE WEEK

THE Spanish conflict on its international side is moving, if not to a crisis certainly to a critical decision. It has to be taken by Herr Hitler. His diplomacy-and Signor Mussolini's have been hopelessly bad—a fact which the Duce pretty certainly realises, and the -Fiihrer may or may not. The recognition of General Franco was to be the mark of victory ; instead there is every sign that the dictators have made the fatal mistake of putting their money on a losing horse. The danger, of course, is that they may try and save the situation by seeing to it that he does not lose. To do that would mean sending General Franco another 60,000 men, and they would have to be sent from Germany, for there is little.doubt that Signor Mussolini wisely prefers cutting his losses to throwing good money after bad. But how far he is prepared to alienate Germany in pursuance of his desire for an understanding with this country in the Mediterranean is not yet clear. He will obviously make the best of both worlds if he can.