21 JULY 1939, Page 20

THE STATE OF FRANCO SPAIN [To the Editor of THE

SPECTATOR]

Sta,—Mr. Edinger's article in your issue of last week on " The State of Franco Spain " took what must seem to many to be an unduly optimistic and vague view of the future of British influence in the Peninsula.

It is perhaps unfortunate for his prognostications regarding the economic balance of power in Spain that an Italo-Spanish trade pact is apparently on the point of being concluded through Count Ciano's successful visit to Franco. Mr. Edinger, too, is evidently unaware of the domination of Basque industry by such semi-official German organisations as H.I.S.M.A. and the corresponding grip on the economic life of Catalonia and the Mediterranean coast by similar Italian concerns.

Fascist .and Nazi activity in Spanish industry is only the logical conclusion, it seems to me, of a policy frankly outlined in the Diario Vasco, of February r2th, which, comment- ing on British recognition of Franco, said: " Those who have lost on the deal and are pretending to offer loans cannot claim profits. If we require help, we shall seek it amongst our friends, who shared our trials and expenses of the war." That is surely sufficient answer to those who believe that a British loan will automatically remedy the loss of influence and prestige which Franco's victory has meant to this country. . . .

Even in his optimisrii, however, Mr. Edinger does seem to have overlooked one of the most important factors affecting the renascence of our influence in Spain—the traditional friendship and democratic affinity between this country and such national minorities as the Catalans, Basques and Galicians, who between them represent almost 4o per cent. of the total population and who produce by far the largest proportion of Spain's mineral and industrial wealth.

If these elements are today temporarily eclipsed, we must hope that somehow, in the future, they will regain sufficient freedom to put that British friendship into economic practice. Present indications seem to set that possibility at a very remote distance, but, until then, I am afraid Mr. Edinger's optimism must remain unjustified by the true facts of the