IBERICA AND VICTORIA KENT

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 03082643
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 26
• Document Creation Date: July 13, 2023
• Document Release Date: August 30, 2022
• Case Number: F-2019-01651
• Publication Date: January 1, 1960

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MEMORANDUM FOR: Walter Elder, Assistant to the DCI
SUBJECT: IBERICA and Victoria Kent
REFERENCE: Letter to the DCI from Norman Thomas, August I. 1960
1. A check with and the Office of Security revealed
the following information on Subject matter:
IBERICA:
IBERICA, which is published in Spanish and English, reaches a s.../ ill
Intellectual circle in Spain. It is distributed through the PSOE (Spanish
Socialist Party). A portion of its contents are taken from liberal
magazines published in France and England, among which is the Basque
Government in Exile publication, OPE. The tone of the magazirie is
anti-Franco but not as strongly anti-Communist as inferred by
Norman Thomas in his letter to the DCL As a matter of fact, in soic.i:
instances it gives undue respectability to the Communists by reprinting
samples of their anti-Franco statements. The principal advantage ct
IBERICA is that it does keep the flame of the opposition alive in the
younger intellectual circles in Spain and, as stated in Mr. Thomas'
letter, serves as a forum where the young, liberal, anti-Communist
Spaniards may freely express themselves. Its audience in the U.S. Li
mainly limited to the Spanish exiles. A copy of IBERICA is attached.
VICTORIA KENT:
Miss Kent was the first woman lawyer to pass the bar examinatioi in
Spain. She is prominent in the legal and literary fields and is a clos(
friend of Norman Thomas. She was on the side of the Loyalists dunri;
the Spanish Civil War.
2. Recommendation: In the DCIls reply to Mr. Thomas, he might say
something as follows:
(b)(3)
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ari.UHE I
- 2 -
My office is indeed aware of the magazine IBERICA of which you
are an Honorary Chairman.
As for Miss Kent's problem with the immigration authorities, it
appears that she is not eligible for Section 13 status because she is
not an employee of a foreign government assigned to the U.S. This,
however, does not necessarily affect her ability to apply for status
under some other section of the law if a quota number is available to
her. I would suggest that she take this matter up directly with the
Department of Immigration and Naturalization.
I very much regret that I am not able to help Miss Kent with her
problem.
CORD MEYER, Ja.
Chief
International Organizations Divisicti,
Attachment:
IBERICA
cc: DDCI
SECRET
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Warman Ziptitas
112 EAST 191h STREET
NEW YORK 3, N.Y.
August 4, 1960
The Hon. Allen W. Dulles
Director of Central Intelligence
Central Intelligence Agency
2430 E Street, N.W.
Washington, D.C.
Dear Allen:
Your office certainly knows about Ib6rica, the magazine dedicated
to Spanish affairs, of which Salvador deMadariaga and I are the
Honorary Chairmen, and which is published by Louise Crane (daugh-
ter of the late Senator W. Murray Crane of Massachusetts).
It is certainly to our interest that Iberica should continuo to
be ptiblished in this country. This, however, depends on the conti-
nued presence here of Victoria Kent, Ib6rica's Spanish bore edi-
tor. SUrely your office is thoroughly informed about Miss Kent
and her distinguished record.
Miss Kent's immediate situation withrespect to the Departront
of Immigration is outlined in the enclosed letter which she re-
ceived from the Department on August 2. She had been advised pre-
viously by the Department of Immigration that she was eligible to
apply for a regulation of status under Section 13 became she had
entered the country with a Mexican official passport. (,he �i; a
naturalized Mexican citizen).
Aside from the informative function of its English laiaguase edi-
tion, Ib4rica is carrying out through its Spanish language ectition
an absolutely invaluable labor in terms of the future relations
between Spain and the United States, in counter-acting comermist
propaganda within Spain, and in serving as a forum where the young
liberal, anti-communist Spaniards may freely express themselves.
There are other aspects of Iberica's work which are not vmeral-
ly known. I would very much appreciate your giting Miss Kent and
Miss Crane a few minutes of your time so that theymight discuss
all of this with you, and consult you about Miss Kent's ilro:Aems.
Sincerely yours,
k, 0
Norman Thomas
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UNITED STATES DEPARTMENT OF JUSTICE
IMMIGRATION AND NATURALIZATION SERVICE
WASHINGTON 25, D. C.
12th & Pennsylvania Avenue, N. W.
Miss Victoria Kent-Siano
420 East 64th Street
New York 21, New York
Dear Madam:
!LIME ADe-ti PLY It
ettFER NS nu NO.
A6 195 1.80
Jut 2 �vik.)
Upon reconsideration of your application for adjustment
of status under Section 13 of the Act of September 11, 1957,
the order entered in your case on July 21, 1959 has been
vacated and your application has been denied This action has
been .taken for the reason that you were not a person of
diplomatic or semi-diplomatic rank to whom the Congress intended
to make Section 13 available.
If you desire to appeal this decision to the Regional
Commissioner in Richmond, Virginia you may do so. Your
Notice of Appeal may be filed on the enclosed Form 1-290 B
within 15 days from the date of this notice. If no appeal is
filed within the time allowed, this decision is final.
If an appeal is desired the Notice of Appeal shall be
executed and filed with this office, together with a fee of
$10.00. A brief or other written statement in support of
your appeal may be submitted with the Notice of Appeal.
Any question which you may have will be answered by the
local immigration office nearest your residence, or at the
address shown at the top of this letter.
Enclosure
Sincerely yours,
0_1644Po, e:ee,10-474,-4.__.
District Director
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lberica
FOR A FREE SPAIN
In this issue
LOYALTY TO SPAIN
Niceto Alcald-,Zaniora y Castillo
SPAIN, 1958-59
HI. THE PRESENT MOMENT
Vicente Girbau
PROBLEMS OF SPAIN'S ECONOMY
A Lecture given at the University of Barcelona
EDITORIAL
Liquidation Period
UNCENSORED
A Country in Bankruptcy
SUMMARY OF NEWS
VOLUME 7, NO.
price 25 cents FEBRUARY 15, 1959
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lbecica
is a bulletin of information on Spanish at fairs, spon-
sored by a group of Americans who believe that Spain's
struggle for freedom is an unforgettable part of man's
universal struggle for freedom, which must be fought
unceasingly on every front against every form of
totalitarianism.
IBERICA is dedicated to the free Spain of the future,
to the free Spain that can be America's friend and
ally in a spiritual sense, rather than in a material
sense alone.
IBERICA offers the opportunity to all Spaniards who
cherish their hope for a free and democratic Spain
to express their views to an American public. Non-
Spaniards who sympathize with their aspirations and
share their ideals are invited to contribute as well.
Editor:
VICTORIA KENT
Honorary Chairmen:
SALVADOR DE MADARIAGA
NORMAN THOMAS
Advisory Board:
ROBERT J. ALEXANDER
ROGER BALDWIN
*CLAUDE G. BOWERS
FRANCES R. GRANT
JOHN A. MACKAY
VICTOR REUTHER
* Deceased
IBERICA is published monthly on the fifteenth of the month, except
July-August when bimonthly, in English and Spanish editions, by the
lberica Publishing Co., 112 East 19th St., New York 3, N. Y. All material
contained in this publication is the property of the lberica Publishing Co.,
and may be quoted, but not reproduced in entirety. Copyright 1959, by
lberica Publishing Co.
Price: Single copy, 25c. Year's Subscription: $3.
SecOnd Class Mail Privileges Authorized at New York, N. Y. Second Class
Postage Paid at U.S. Post Office, New York, N. Y.
.17ifti,t.357
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LOYALTY TO SPAIN
Niceto Akala-Zamora y Castillo
The periodical reports concerning an eventual restora-
tion of the monarchy in Spain call for a clear state-
ment of position. More than ever before, the present
moment requires the loyalty of all to the nation,
which alone must decide its destiny, and an unequivo-
cal definition of intentions so that the citizens may
pronounce judgment in full awarencss of the facts.
The destiny of Spain, which has been deprived
since 1936 of all the freedoms enjoyed by the coun-
tries of western civilization and democratic organiza-
tion, including countries that are far less culturally
advanced, cannot be decided by cliques meeting in
secret conclave behind the backs of the thirty million
Spaniards whom, by a singular paradox, the extreme
nationalists, the hysterical exalters of a misunderstood
"Hispanidad," regard as mentally deficient and hence
in need of a permanent political guardianship as-
sumed in 1923 by a grotesque dictator and placed in
1936 in the hands of a cruel megalomaniac who has
dragged his country into an abyss.
The primordial aspiration of the Spaniards must
be to avoid another civil war; that of 1936-39 must
definitively close the series that Spain has suffered
from, just as the Franco regime must be our last dic-
tatorship. The achievement of both goals, which is
the aspiration of the overwhelming majority of Span-
iards both within Spain and abroad, must be the re-
sult of a dialogue between the different trends of
opinion in order to establish the foundation for the
indestructible coexistence of the future, and to arrive
at a constitution and some symbols (i.e. flag, national
anthem, etc.) that arc above factional connotations.
All of the non-totalitarian sectors of Spanish life
should participate through their delegates in this dia-
logue, but no one else. To call upon foreigners in
search of interested approval and backing, which
would commit our national sovereignty more deeply
than it is already, would be to imitate, a century and
a half later, the humiliating spectacle of Charles IV
and Ferdinand VII prostrating themselves before Na-
poleon in Bayonne.
NICETO ALCALA-ZAMORA Y CASTILLO, son
of the first president of the Spanish Republic, is a
Professor of Law at the University of Mexico. Ile
is President of the Movement for Spanish Liberation
and of the Federation of University Students.
Can the monarchy be the means for the achieve-
ment of these ends? Our unhesitating answer would
be no. Aside from the fact that the last legalh con-
stituted government to exist in Spain was the Repub-
lic, and that it would hence have a prior claim for
immediate restoration, the monarchy, aside from pos-
ing once again the question of the regime, wh_cli the
Spanish people decided in 1931 and which N;;;,1 not
even raised in connection with the military rebellion
in 1936, lacks standing in our country. This not
a matter of gratuitous supposition but of a conv.;tion
which has been expressed by leading monLi_hists
themselves. About two years ago the Madrid news-
paper ABC quoted General Kindelan, a prominent
monarchist, as having commented on the lack I en-
thusiasm for the monarchy among the youth, and
on May 7, 1958, the same newspaper quoted lrcn-
tubo Perez Embid, an outstanding member of 'Apus
Dei and one of the sponsors of the plans tor a monar-
chist restoration, as making an identical admission. In
any case a controversial king can never be fn;rnly
seated on the throne. Although Leopold of Beum,
for instance, was backed by a Flemish majority and
won the plebiscite on the question of his return to the
throne, he was subsequently compelled to abd; :arc
because of the unflinching opposition of the Wahioon
minority. And in Spain, for reasons winch F will
come to, the Pretender would encounter much s' offer
opposition than did the Belgian monarch in hi; day.
The causes for the waning of enthusiasm in Spain
for the monarchy, almost to the point of extirct,on,
are multiple. First of all, there is the universal tr-rid
towards the disappearance of the royal in:tituti i In
1914 only three republics existed in Europe, ..icle
from minuscule states like Andorra and San Mn no;
today, on the other hand, there are only so ven
monarchies left, and all of them (this the Spanish
monarchists should not forget) are of a liberal. par-
liamentary and democratic character, true crovk acci
republics, as they have been called. In the so, unit
place, almost twenty eight years have passed Huc
Alfonso XIII was compelled to abdicate, hen ci: the
immense majority of Spaniards have not livto in
their adult years under a monarchy nor do the- i eel
a nostalgia for its return. On the contrary, in oite
of the officially decreed falsification of the tea:long
of history under the Franco regime every Spa-C:trd
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knows very well that the dynasty whose restoration
would be imposed on him without his being consulted
has systematically shown itself to be the enemy of
freedom and democracy, as the names of Ferdinand
VII, Isabella II and Alfonso XIII remind us; that
this dynasty has been the cause or occasion of inter-
nal wars and military rebellions without end; that it
has consistently failed to guarantee stability, as all the
Spanish kings and regents from Charles IV to Al-
fonso XIII, with the single exception of the Queen
iRegent Christina of Hapsburg, have known exile, and,
biologically speaking, they have a sad heritage of tu-
berculosis, hemophilia, deaf-muteness and blindness,
fully justifying the title of the book Pathological His-
tory of a Degenerate Dynasty: the Bourbons of
Spain by Gonzalo de Reparaz, which advocates of
the restoration would do well to read and ponder.
The Spaniard also knows that the Civil War, with
its two million dead, was organized by the monar-
chists by virtue of the Pact of Rome with Mussolini:
that most of the men who have misgoverned Spain
since 1936, beginning with Franco, have been monar-
chists; that there is a plurality of pretenders (Don
Juan, Don Juan Carlos, the sons of Don Juan's older
brother, Don Jaime, Don Javier, the Carlist Pre-
tender, even a descendent of the Moorish king Boab-
dil) and hence there would be a danger of discord
among them; above all that he who aspires to be
"King of all the Spaniards," far from having re-
mained neutral during the Civil War, which would
have been an intelligent position in which he could
have brought his influence to bear to ameliorate the
horrors of the war and the subsequent persecutions,
was a belligerent himself who offered his services to
fight for Franco [who turned him down] and whose
oldest son was named Juan Carlos in honor of Fran-
co's Carlist supporters, and who during twenty-three
years did not utter a single word of condemnation
for the crimes and arbitrarities of the regime.
When thousands and thousands of Spaniards, in-
cluding adolescents and women, were being executed
without trial in Badajoz, Ponferrada, Ferrol and s
many other cities; when by 1939 there were about
100,000 inmates in the monasteries that had been
turned into prisons in Madrid; when half a million
Spaniards had to take the road of exile, first to live
in concentration camps and then to remake their
lives abroad; when the newspapers were appropriated
and gagged and the Universities purged to greater
extent than were the Italian universities under Mus-
solini and the German ones under Hitler; when so
many of Spain's great intellectual figures were dying
in exile (let us think of a recent example, Juan Ra-
mon Jimenez); when persons who had sought refuge
in France such as Luis Companys, president of the
autonomous government of Catalonia, were kid-
napped by the Franco police in connivance with
Himmler's gestapo and tortured and then executed
in Spain; when in brief so many many iniquities
were taking place the Bourbon dynasty maintained
a sepulchral silence, the silence of a guilty complicity.
But supposing, for a moment, that the Spanish
people had forgotten all of this and were to ask
what is the program offered them by he who aspires
to be their king? With a casualness verging on cyni-
cism the monarchists reply, "First the restoration,
then we shall see." Why this insistence on the restora-
tion before everything? Because the monarchists know
full well that in some even half-way genuine elec-
tions they would not stand a chance. So what they
seek is to assume power as quickly as possible and
by whatever means; to set up their scaffolding of au-
thorities and chiefs and then either put over some
fraudulent elections in the style of the corrupt mon-
archist methods resorted to by Romero Robledo, Sa-
gasta, Cierva, Romanones, Bugallal, Goicoechea, etc.,
or else, under the pretext of some incident or another,
probably instigated by themselves, to indefinitely
postpone the elections. Sooner or later this suicidal
impasse would end in a revolutionary conflagration
or a dynastic conflict, inevitable denouements which
do not seem to have occurred to the obfuscating
restorers.
In the meantime the monarchy offers a different
solution every day: thus Calvo Serer of Opus Dei
tries to get in touch with the exiles, even offers them
portfolios in the government of the second stage r,f
the restoration; Perez Embid, another member of the
shadowy theocratic institution, proposes an absolute
monarchy in the style of Charles III; Sainz Rodri-
guez, acting in the role of official spokesman in Es-
toril, releases some pro-Carlist declarations, only to
rectify them twenty four hours later with some pseu-
do-liberal ones. Years ago the Pretender revealed
himself to be an adversary of universal suffrage; la-
ter he initiated simultaneous negotiations with Franco
and an outstanding person in exile; in recent times
he has promised to adhere to the line of the Move-
ment of July 18 [Falange], later to appear in Lour-
des surrounded by requetes [nationalists of Navarre
... 'Then there is the lamentable competition between
father and son for the crown. Whether such fluctua-
tions are the reflection of an irresolute and ill-advised
temperament, or typical Bourbon maneuvers, they do
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IBERICA
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not augur well for a restored monarchy.
Were there no alternative but Franco or the mon-
archy, then one would unhesitatingly choose the lat-
ter. But fortunately other preferable solutions exist.
In this we have the example of Spanish America,
several of whose countries have succeeded in throw-
ing off their respective dictatorships without the jun-
tas formed for such an end having arisen with the
preconceived plan of imposing such or such a candi-
date on the citizenry. A similar procedure should be
resorted to in Spain. A junta that would be neither
monarchist nor republican in character would take
it upon itself to replace Franco and maintain public
order. While in power, during a period of say three
to six months, the junta would dissolve the official
party [Falange] and its subsidiary organizations (stu-
dent and labor sindicatos); it would annul the re-
gime's measures of persecution and repair the out-
rages committed; it would suppress the so-called
"Special" tribunals and limit the jurisdiction of mili-
tary tribunals to strictly military crimes; it would
restore individual guarantees; it would permit the
peaceful reorganization of political parties and labor
unions, and it would take steps leading to the for-
mation of a provisional government which would be
as representative as possible.
This provisional government would, in turn, con-
voke constituent elections within a predetermined
period of not more than a year. These constituent
elections should be a model of propriety, and could
SPAIN, 1958-9
1111. THE PRESENT MOMENT
Vicente Girbau
Professor Tierno Galvin, of the Law School of the
University of Salamanca, has said that Spain is a
country without a dialectic:
Cf. . . Spain, prodigal in internal wars, a country
which has placed itself 'on trial' ceaselessly from the
Renaissance down to our own times. . . what is cer-
tain is that we have done nothing but place ourselves
on trial; . . . leaving aside the question, of interest in
itself, of the influence of Roman-canonic thought on
the formation of this mentality, what is important is
the relation between this tendency to be 'on trial' and
This is the last of a series ot three articles by VI-
CENTE GIRBAU LEON, an official of the Spaniih
Ministry of Foreign Relations who took refuge in
France last May to escape police persecution in Spain.
be supervised by observers of international oil a itiza-
dons. The different parties would campaign with ex-
plicit declarations as to their positions with re,,toect
to the monarchy and the republic, and all ,,,ould
commit themselves in advance to abide by tht ,,eci-
sion of the polls and not try to change it
through electoral means. For their part, students and
workers would not call strikes until such a time as
the life of the country should have been restoit to
normalcy.
If under such conditions the monarch), shoulit tri-
umph then it would come in with a prestige and au-
thority which it would totally lack should i be
brought in by the back door, through a coup 1 etai,
and, needless to say, should it be led in by Fateo.
In such an electoral consultation the mona clists
would have advantages over the republicans; in ad-
dition to the fact that the former have not ieen
persecuted as have the latter, the deciding vote Nill
be cast by the young people under 40, that is IA, the
citizens whom the regime tried to form in its own
image, daily inculcating in them an aversion to ',a rds
the Republic. If under circumstances so favora to
them the monarchists should still reject this for mula
then it could only be because they are completely
convinced that they have no strength; but it would
not be just for a small group to impose the mon why
a priori, taking advantage of the country's contlete
lack of freedom.
the lack of a dialectic. A people of defendants and
trials, as are the Spanish people, are a people !pok-
ing in dialectic. In our history opposing forces Dryer
merge into a superior unity; they remain apart, ike
the two parties in court awaiting the verdict. 3es a
result nothing is ever changed, nothing disappe,i-s;
all remains with us, but without becoming motter-
nized and susceptible to any interpretation, no T.Lt-
ter how arbitrary."
Then he went on to speak of the Caktilian
of the Comunidades:1 "Tolerance is indispensable in
the dialectic of political coexistence; where a tend-
ency towards indictment predominates there is nc
ui-
1 Comunidades: the cities of Castile which ros,: in su.)!
of Spanish liberty against Charles V.
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erance. Nothing new came out of the Castilian war
of the Comunidades, nothing was assimilated or trans-
formed; the war remained, ever present in its three
faces of rancor, vanquishment and death.
"No war, even less a civil war, should remain ever
present as a petrified menace. It must be assimilated
and done with."
I believe that these words of Professor Tierno Gal-
van serve as an appropriate introduction to this last
article of the series, in which I will attempt to con-
vey an idea of the present moment in Spain, and a
glimpse into the future.
* *
A letter that I wrote several months ago included the
following paragraphs about last spring's strikes in the
Asturian mines and Catalan and Basque industrial re-
gions:
"The recent strikes were not on any greater scale
than those of other occasions, yet I believe that they
were far more significant because they revealed a
new awareness among the working classes of some
very important regions of Spain, just as the student
demonstrations of February, 1956, revealed a new
awakening in the universities.
"Test strikes had been called in some factories and
mines and great masses of workers joined in spon-
taneously, completely outnumbering the members of
organized opposition groups. Any of the latter who
claim credit for these strikes are only deceiving them-
selves; in some cases members of one group or
another took the initiative, but in many other cases
the strikes were completely spontaneous. On the other
hand even some enlaces sindicales I liaison officers be-
tween the government controlled labor unions or sin-
dicatos and management] joined in the strikes."
In general the opposition is characterized at pres-
ent by this new awakening among the working class-
es, and by its generalized nature among students and
intellectuals, above all among the younger genera-
tions. Little by little it is becoming integrated and
taking on form, as the re-
sults of the latest roundup
of socialists amply demon-
strate. This roundup, one
of the most important
events of the last few
months, pointed up the fol-
lowing characteristics of
the opposition:
1. It is on a national
scale; it is not just a matter
of unrelated local groups, but of an organization
spreading out over the entire nation.
2. It includes a great abundance of persons of so-
cial prominence and intellectual prestige.
3. It includes persons of all social classes: doctors,
lawyers, chemists, engineers, white collar workers,
laborers of all trades and students.
4. It includes a great abundance of young people
under 40 who have come into political life under the
regime. This in itself leads us to two factors that
bear the death sentence of the regime: a) the fact
that this socialist movement includes persons from
the dominating classes, persons of privileged posi-
tion who have attained prestige under the present rc-
gime; b) the appearance of new generations of work-
ers, generations who have not suffered directly from
the terror of past repressions, generations that live
relatively free from fear and rancor, in other words,
this is one more factor favoring the appearance of a
new organic class consciousness among the Spanish
workers.
The situation of the regime is disastrous. Friends in
Barcelona have sent me a summary of a lecture de-
livered there recently by a visiting professor of eco-
nomics; they tell me that they have also sent this
summary to IBERICA, so perhaps it will appear in
this or a forthcoming issue. This analysis of Spain's
economic maladies brings out the following points:
A badly directed industrialization process has
placed the emphasis on luxury industries that require
enormous credit reserves for their establishment and
maintenance because the need for adequate sources
of raw materials and power had not been foreseen.
An abandonment of agricultural production has re-
sulted in the need to import food products, and this
along with the need to import basic materials for the
big industries that have absorbed a large part of
American aid, and a decrease in the export market,
have brought about a catastrophic deficit in the for-
eign trade balance.
Because of all this the regime has had no choice
but to try to join the international economic organi-
zations or else to convert Spain purely and simply in-
to an American economic colony, supposing that the
latter should be interested in maintaining so un-
profitable a venture. But let us consider the stipula-
tions made by these international organizations; the
0.E.E.C. requires a liberalization of foreign trade;
the International Monetary Fund requires the parity
of the peseta; the Bank of Reconstruction and De-
velopment requires a series of anti-inflationary meas-
ures. Can the regime afford such measures? The idea
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of the International Monetary Fund is that ever since
1953 American aid has done Spain harm by masking
the basic evils of the regime's economic policy, post-
poning year by year the collapse which would in-
evitably bring about a change of position. In short,
every year American aid has consisted of the mini-
mum amount necessary to keep the Spanish economy
afloat; it is like the oxygen tent which permits the
patient to linger on in life, but which does not at-
tack the disease itself.
The Church continues its process of dissociation
with the regime. A belief has been circulating in
Spain according to which the new pope has decided
to undertake an operation in the grand manner aimed
at creating a Catholic movement which is separated
from the most reactionary positions of Christian De-
mocracy, and aligned with the socialism of a non-
communist left. The Vatican's withdrawal of recogni-
tion of the Polish and Lithuanian governments in
exile, Enrico Mattei's trip to China and various coun-
tries of recently acquired independence, and the poli-
tics of Fanfani and the "apertura a sinistra" would
all be parts of this operation. In Spain such a policy
would require the termination of the regime, and the
recent conflict between the Abbot of Monserrat and
the Governor of Barcelona would be a phase of this.
I myself do not know how valid this theory is, but
the fact that this belief is widespread in Spain is in
itself highly significant.
But the Church and the United States have been
the two pillars of the regime for the last ten years.
Last but not least, the financial scandal. This tre-
mendous scandal, which would have precipitated a
governmental crisis under normal circumstances, has
caused a great stir because of the large sums involved
and the importance of the persons implicated, and
because it revealed the lack of confidence of the mag-
nates of the regime in the endurance of the regime
itself. Even though it was generally known before,
the fact that the news should come out into the open
that those who control almost all of the resources
of Spain's economy and power should have chosen
to place enormous sums abroad for safekeeping is
highly significant.
It appears that even Opus Dei began a tactical
retreat some time ago. Calvo Serer has approached
persons in exile, telling them that the fall of the re-
gime was imminent and that a joint effort by all wasp
needed to put an end to the dangerous vacuum of
Spain. It appears that this desire of Opus Dei coin-
cides with Franco's desire to replace his present gov-
ernmental team [which includes members of Opus
Del] which he rightly regards as having bc m a
failure.
What will the new government consist of? it will
not be easy for Franco to find replacements. Chore
has been talk of a return of the Falange, but ill such
a maneuver proved impossible in 1956 it wou id be
even more so now. There has been talk of same sort
of a sindicalista solution under Solis [head of the gov-
ernment-controlled vertical sindicatos or unions but
the continual soaring of prices and the impossibility
of raising wages rule out a demagogic type sointion.
Perhaps Franco will call upon the Catholic -oups
of Bishop Herrera of Malaga or a group of tcinical
experts, but whatever happens the result will not be
anything but the continuation of the pi ocess of self-
liquidation of the regime.
* *
Though on the one hand this scone induces am rnism
about the future, on the other hand lt caniiot but
induce deep pessimism. For if a regimc in the disas-
trous situation which I have just described (solo hates
to linger on, it is only because nothing exists c.ipable
of giving it the final shove, nothing to take i!ter in
its place. The spectacle of a government disint !grat-
ing in such a way is cause for considerable coutiern.
It would seem as though all of the Spanish 3truc-
tures, of the regime and of the exile, are disint.t.g iating
simultaneously. I think that the historic intetoreta-
tion of what has happened since the end or World
War II could be the following: In tht, year, imme-
diately following 1945, the exile' tried to impost itself
as such, that is, to invest the results of the Civil War.
It failed, and the moment of its failure marl e, per-
haps, the true end of the Civil War. it was that
point that the Franco regime became establ.si ed as
something definitive�definitive, that is, within the
limits in which it makes sense to use the worc in a
historic context. But at the same tirre the Tegime
ceased to exist with the characteristics with itteich it
had emerged from the Civil War. The pi.eudo-
fascist regime, with its tenuous ideological ei,ntent,
was replaced by this strange ecclesiastical-4 in arida'
dictatorship, backed up by the force of an arny of
occupation in its own country. Since then both the
regime and the exile went on maintaining Ow same
themes as those of the Civil War, but they ttt ore no
longer based on reality; for under the surfae.i. great
process of decomposition was going on.
For some years we saw the activities of thai.t. whom
2 By "Exile" I do not mean any individual or on a rization,
but the Exile as a collective phenomenon re:,ulting frmt the
Civil War.
FEBRUARY 1 5 , 1 9 5 9
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7
we have called the "reformists" within the govern-
ment, while at the same time there was a gradual
maturing of the new generations. Then in 1956 came
the eruption of the youngest of these generations,
which we have already described; the less young
joined in this new awakening, some because they had
finally found themselves, others because after years
of despair and skepticism they had discovered that
the moment for action had arrived.
It is important to insist that this was a matter of
a new awakening. During the past two years we have
witnessed a multiplication of new groups all through
the nation; groups of persons who unite and formu-
late ideas and try to realize whatever actions are pos-
sible to them. I wish to say, by the way, that this is
no sign of anarchy but of vitality. It means that
Franco could not kill all of a Spain which he had
wanted to exterminate forever. It is a certainty that
we will come to have her once again.
It would be impossible to enumerate all of these
groups, nor would it be of much interest. Some have
been ephemeral, others have endured because they
relate to a reality. Let us mention three of the latter:
Agrupacion Socialista Universitaria, which relates
to a need felt profoundly by many young students and
intellectuals to give Spanish socialist tradition a strict-
ly scientific character, while being at the same time
profoundly revolutionary and democratic.
7 Nueva Izquierda Universitaria, which relates to a
/ phenomenon that is characteristic of Spain today:
an authentic Catholicism of the left.
Nueva Repetblica of Barcelona, which represents
a position of progressive radicalism, with a tendency
to relate to some of the movements of the "New
Left" in Europe.
Then there are splinter groups resulting from the
disintegration of the Falange. At present there are
three of these groups in the University of Madrid,
namely:
Juntas Republicanas Sindicalistas, which is clearly
anti-fascist and democratic, and which proclaims the
concept of a democratic trade union movement.
Accion Nacional-Sindicalista, openly anti-Francoist
but still fascist, something which in reality has never
ceased to exist in Franco Spain.
The Falanges Universitarias, vaguely oppositionist
ut still within the framework of the regime, with a
tendency to serve as agents provocateurs as on the
occasion of the arrests last spring of members of
Agrupacion Socialista Universitaria.
Then there are the groups of the center or left of
center which aspire to serve as a bridge, such as the
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IPartido Social de AcciOn
! the name of Azafia, but
1Funcionalistas.
As these new groups have appeared the old poli-
tical formations have acquired new impetus and ef-
fectiveness in a process of regeneration which, when
completed, will help to clarify the political scene. Al-
ready contact and liaison exist between these and
other groups.
During the last two years efforts have been made
to arrive at a pact which would unite these various
elements into a single front. These efforts have been
a disappointing failure. Certain persons and groups
of the interior, realizing that a profound mass action
was not possible for the moment, have sought con-
tact with conservative groups in an effort to set up a
general mechanism of more or less liberal and demo-
cratic forces. The plan was based on the following cal-
culation: right wing groups exist that seem deter-
mined to combat the regime; these rightist groups
are the only ones in a position to carry weight with
the Church, the Army and the world of finance. All
of this has centered about the question of the monar-
chy. Some say that one must accept the monarchy,
others that one must respect the principles of an
exquisite democratic purity. But behind all of these
polemics lies a nation which is not the least bit in-
terested in this question of the monarchy.
in my opinion all of this is something which must
he regarded as finished for the time being. And more
than to any theoretical principle, the failure has been
due, in my opinion, to memories of the past. Nothing
is more natural, given the ponderous weight of these
memories; memories that introduce elements of mis-
trust between one and another, and which lead one
to be influenced by a very human desire to demon-
strate that at a given moment one was in the right.
But at the same time, nothing is more irrational. His-
tory will judge the past, but for this it is necessary
for history to proceed. We must close the parenthesis
of the past twenty years and get on with the his-
tory of Spain.
Democrcitica which evokes
a socialist Azalia, and the
* *
This spectacle of a country's disintegration induces
the most utter pessimism; one could almost be justi-
fied in asking if Spain really exists as a country, that
is in the sense that not only is a country an aggregate
of human beings but also an aggregate of organic
structures. For in Spain today there are no organic
structures other than the Army, the Church and the
financial world. It would seem difficult to maneuver
among these groups in order to arrive at a situation
TBF,RICA
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THE BANQUET OF THE
!UNION ESPANOLA"
Qn January 29 the political group
called "Union Espanola" held a
meeting in Madrid attended by
about 100 persons; some of them
were monarchists, others of more
democratic tendencies.
The immediate reason for the
meeting was a letter which the writ-
er, Jose Maria Peman, a monar-
chist, had received from Sr. Carre-
ro Blanco, in which the former was
advised of General Franco's position
with respect to the monarchist
movement.
In his letter Sr. Carrero Blanco
is reported as having said "the Gen-
eralissimo has declared that SPAIN
IS A MONARCHY ALREADY,"
and that "General Franco is the
sovereign of the nation now and
as long as he lives." The monarchists
reacted by deciding upon this ban-
quet, during the course of which
they could say to Franco, also indi-
rectly, what they thought.
After dinner speeches were deliv-
ered by Srs. Joaquin Satritstegui,
Jaime Miralles and Professor Tier-
no Galvan. Sr. Satritstegui severely
criticized the government's economic
policy, "without present or future,"
and Spain's present administration,
demonstrating with documents and
precise reasons the "illegitimacy of
the present regime."
In commenting on Sr. SatrUste-
gui's words, Sr. Tierno Galvan said.
"Spain has awakened to a tremen-
dous reality; fiction begins to fall
with all the weight of its crude and
grotesque scaffolding. . . We be-
lieve that the words pronounced by
Sr. Satnastegui do not represent an
opinion but the clamor of the con-
science of an entire nation."
The banquet was authorized by
the police, and, according to well-
informed ,sources, notes about the
speeches to be delivered had been
submitted for prior censorship.
Although press reports have stat-
ed that the speakers were subse-
quently arrested, this is not the case.
They were called to police head-
quarters to make depositions, along
with some of those attending the
bapquet, among them the Marquis
of Casa Arnau, Mariano Robles
Robledo, Luis Benitez de Lugo and
Amadeo, Cardonello.
'hose attending the banquet in-
cluded Sr. Gil Robles, military of-
ficials and representatives of indus-
try and finance. The presence of
Gil Robles would seem to broaden
the political spectrum of this gather-
ing. On the other hand for the mo-
ment no agreement has been made
with Republican and Socialist sec-
tors, nor with the group headed by
Dionisio Ridruejo, AcciOn Democra.-
tica y Social.
PEMAN ANSWERS
CARRERO BLANCO
A letter dated Feb. 2, in which the
writer, Jose Ma. Peman, answered
the letter from Admiral Carrero
Blanco, which precipitated plans
for the dinner of the "Union Espa-
?Iola", was released to the press on
February 10.
The letter exhorts Franco to pave
the way for his succession. Here are
two paragraphs from it:
"I believe that the future would
he more solid if Franco would pre-
for this event during his life,
instead of depending on future de-
cisions." . . . "The Government
holds the means of orienting and di-
recting the growing national sindi-
cal movement, which, in turn, has
in its hands a large part of Spain's
future." . . . "Would it be so dif-
ficult to let the monarchy be known
as something more than a vague
possibility subject to conjecture, and
something more than silence with
respect to Don Juan?" . . . "I am
completely in agreement that the
monarchy should be installed as a
continuation of the victory (an allu-
sion to the Civil War) and its lead-
er." . . "It is necessary to pre-
serve the heritage of the Catholic
Monarelis and Charles V."
RATTLING OF SABER:,
Madrid, Ibirica:�) he hia otter_ of
the "Union Espanol.," is tsoect
of the present race tor po r. The
situation is )Tery flu T:" -land
of saber-rattling has 'ieen ol for
several week . here. ieven et the
younger military offit als hi , !elven
warning that they a, e pre.).:�rd to
seize the reins of sthte to "tore
order," before the couatry i tinged
into total bankruptcy. Th insis-.
that such an eventu.lity only
be avoided if a team of re,risible
civilians is prepared apab )1 re-
storing the confidencee of for-
eign powers and of .whiev, cer-
tain changes without ,erave trh-
ances. The "Uni6n Esoalioli ' gath-
ering relates o this ;ituat ,eGil
Robles' suppoi t could lecirle ,e at-
titude of a certain ).-ctor the
Church, and convinc tim ones
like Ruiz Girni'mez. The sur ri of
the banking world cowd per, the
negotiation abroad of the boar
ed for establishing the oarit% +(-
peseta.
All that is n-,eded is to "f
cat," and the cat, thit y say s in
El Pardo Palace.
the.
"FRANCO ON THL BRL,;=,
An article descr ibing fort net
of the "Union Espailob� par e
pearing in the February 7 edit oi
the New Statesman of London -rids
with the followmg com.nent:
". . . the formation o the re-
merit is an act of open detiar rn
Franco, whose penal cod,- spec I i-
ly forbids the creation of po -Hal
Parties; and the support :1 is rut 'iv-
ing indicates the extern to ,C (1
Spanish business circles, and
the army, are now camp tignin
Franco's removal "
II
I (sr
PROFESSORS UNPAID
Ibirica, Barcelona: The trnivr
professors who receive ext- a pal. ol
special scientific research pro ,
have not received this e-ara, c
pensation for three montfee
FEBRUARY 15, 1 9 5 9
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MORE STRIKES
Textile workers of Torrasa
Eight hundred textile workers went
on strike in January in Tarrasa, one
of the principle centers of the Cata-
lan textile industry, 20 miles outside
of Barcelona. Strikers protested the
reduction of the working week to
three days. Seven are reported to
have been arrested.
It had been feared for some time
that the reduction in the working
week in the textile industry, reflect-
ing the overall slump in this indus-
try, would lead to serious discon-
tent.
Shipyard workers of Seville
(From Le Monde, of Paris, Jan. 27)
"More than 2000 workers parad-
ed through the streets of Seville de-
manding wage increases. Most were
employees of the aviation plant and
the naval shipyard. There were no
disorders or arrests, nor did the po-
lice disperse the demonstraters, even
though the latter carried big plac-
cards stating their demands. The of-
ficials of the two companies have
just received wage increases, but the
government has not authorized any
wage rise for the workers."
'STUDENT
DEMONSTRATIONS
(From Le Populaire, Paris, Feb.
Barcelona: -- Student demonstra-
tions continue in the University of
Barcelona for the release of the po-
litical prisoners. On Friday, Jann
ary 30, classes were suspended in
the Law and Philosophy Colleges.
The students refused to go to class-
es and they marched through the
streets in an orderly way asking for
a broad amnesty for the political
prisoners. They distributed leaflets
in which they asked for the "irn-
, prisonment of those guilty of export-
ing
capital."
The Boletin Inierior published by
the exiled autonomous government,
of Catalonia and the U.G.T. (Uni6it
General de Trabajadores) in Per
. pignan states in its most recent i4-
sue: 1
The return of Professors Rave
tOs and Rion and the student Sam
pons, gave rise to a demonstration
,
2
in the University of Barcelona The
students of the Colleges of Law,
Letters and Sciences welcomed them
with a great ovation. Cries of "Free-
dom to those imprisoned," "Let the
thieves be brought to justice," and
"Make the list public." caused a
great commotion in the Law Col-
lege.
The police have ordered Raven-
tos, Riorn and Sampons to remain
in their homes so as to avoid more
demonstrations.
REQUIEM MASS FOR
GENERAL BAUTISTA
SANCHEZ
On Friday, January t); a requiem
mass Was held for the late General
Juan Bautista Sanchez, the Military
Governor of Barcelon.a who died
about two years ago under circum-
stances suggesting tIm. his death was
not from natural causes. (It was rn-
rnored that the General had been
poisoned on orders Item on high.)
The requiem rna.S. was ,attended
by a great many outstanding Mona,-
c.Ists, including many who oppose
the Franco regime.
\ BATISTA'S SON IN SPAIN
Fulgencio Batista Codines, son of the
ex-dictator of Cuba, his wife and
three sons have arrived in Barcelona
where they plan to take up resi-
dence. It is rumored that Batista
Jr. is endeavoring to arrange for a
visa for his father and Other rela-
tives to come to Spain.
SPAIN IN NATO?
On January 9 two resolutions were
introduced in Congress (House Con-
current Resolutions 26 and 29) by
Mrs. Edna F. Kelly, Democratic of
New York, and Mr. Francis E. Wal-
ter, Democrat of Pennsylvania, "ex-
pressing the sense of the Congress
that efforts should be made to in-
vite Spain to membership in the
1 North Atlantic Treaty Organiza-
The resolutions were referred to
the Committee on Foreign Affairs.
�,
pope'S MESSAGE
CENSORED flg SPAIN
ma4rid (OPE):---Decernber 8, the
day of the Imenaculate Conception,
is also` the World Day of the Im-
migrant. On this occasion His Holi-
ness Pope John XXIII sent a tele-
gram to Spain in which he sent his
blessings to all Spaniards who had
been obliged to leave their country.
However this portion of the Pontifi-
cal message was censored in Spain.
THE "LIBERATION
OF BARCELONA"
lqrica� Barcelona: 04 January 26
the officials of the regime celebrat-
ed the anniversary Of the "libera-
tion of Barcelona.", The Civil Gov-
ernor of Barcelona, Sr. �Acedo Co-
lunga, organized several official cere-
monies to which the Bishop and
other high-ranking members of the
Church were invited. However the
Bishop of Barcelona did not attend,
nor did he send a representative.
This conspicuous absence is signifi-
cant in view of the fact that the
Bishop had been, present at then'
annual affairs in the past.
THE RIBADELAGO DISASTER
COULD RECUR
lberica, Barcelona: -- There has
been much talk here about the n-
semblance between the disaster
caused by the breaking of the dam
in Valencia in 1957 and this new
catastrophe in Ribadelago. Both are
said to have been due to defective
construction by the government con-
trolled Institut� Nacional de Wes-
t:tin (TNT).
Tt is natural for the people to
come to these conclusions as it k
already public knowledge that or -
ders have been given for the reser-
voirs to be emptied of one third 01
the' con tents.
This measure is said to be heinti:
taken on the advice of foreign en-
gineers, Who have warned that all
of Spain's new &MS run the risk
of breaking because of faulty con-
struction:
'IBERICA
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tb
\ BILLS WITHOUT SERIAL LETTERS
ECONOMIC DANGER
SIGNALS IN SPAIN
An article with the above heading
appearing in the January 17 edition
of the London Economist, ends with
the following paragraph:
A curious feature of the country's
economic plight is that things are
bad although American economic
aid to Spain has just passed the bil-
lion dollar markf this does not in-
clude $350 million for the bases and
$400 million for the modernization
of General Franco's, armed forces).
In explanation the Americans say
/at their economic assistance is not
a recovery program; it is for "de-
fense support," that is, it is designed
to help Spain to withstand the eco-
nomic impact of the joint construc-
tion of military bases and the moder-
nization of the armed forces. Amer-
ican aid, therefore, is not being
poured into the Spanish economy in-
discriminately; it is being elm-uncle:1
into basic and selected ,sectors, not-
ably to agriculture, electric power,
transportation, and the supply of
Certain raw materials and foodstuffs.
The Americans feel that their aid
program in tpain cannot be held ac-
countable for a situation brought
kbout by excessively rapid industrial
development pushed forward at .the
expense of agricultural needs, by an
Unmovable reluctance to disturb
vested interests, by resistance to for-
eign capital investment, and by ex-
cessive government controls on pri-
vate economic activity.
spito) THREATENS ISRAEL
(From Le Monde, Paris, Jan. 23)
Damascus, AFP:�Sr. Castiella has
made it clear that in his talks with
Spanish diplomats in the Arab coun-
tries he has impressed upon them
the need to improve relations be-
tween Spain and these countries.
In reply to questions posed by
journalists, Sr. Castiella recalled that
Spain has never recognized Israel,
and that in the event of Israel's ag-
gression against any Arab country,
no matter which, Spain's position
would tonform to her friendship
with the latter countries. He also in-
sisted that the invitation extended to
President Nasser in 1955 to make a
visit to Spain still held.
CIRCULATING IN SPAIN
BERICA has received reports from Spain of the cir-
culation there of 1000, 500 and 100 peseta notes bear-
00) ing no serial letters; samples of these have been sent
to the IBERICA office.
As is generally known, paper money should bear both
a serial number and a letter. The samples of Spanish
bills received by IBERICA include 1,000 peseta notes
issued on October 21, 1940, February 19, 1946 and No-
vember 4, 1949; 500 peseta notes issued on Novem-
ber 15, 1951, and December 31, 1951, and 100 peseta
notes dated April 7, 1953. All bear a serial number but
no serial letter.
A correspondent in Spain has had this to say: "I
have spoken with more than 20 persons, including bank
employees, but none could explain this phenomenon to
me. One friend who made inquiries with a friend of
his in the Banco de Esparta received the following la-
conic reply: 'If you should go abroad it would be
best not to take any bills without serial letters'.
"I first became aware of the existence of these bills
when I went to change some money into fOreign cur-
rency and the money changer rejected them as being
'irregular'."
*
SURPLUS A RICO PRODUCTS TO SPAIN
On January 13 an agre .ment
signed in Madrid betwet a the
and Spain for the sale of sr, -us
agricultural products in retur oc
pesetas.
U.S. surplus commoci ties ; be
shipped to Spain. include $50S.
oi-
lions in edible oils (soyb,-an cr
ot-
tonseed) ; $17 millions in cc t -ru;
$11.5 millions in feedgr,ins; G.-
000 in dehydrw ed ; $5C-
in poultry; $1.5 millior: in It
The cost of transportar-on is iti
mated at $5.7 million.
$8.8 MILLIONS IN
TOBACCO FOR SPAIN
It is curious to note tha: the ce-
ment signed on Januar), 13 is la-
drid for the sale of U.S. agrict i ii
surplus products to Spah for F ota.s
under Public Law 480, include '.8
millions worth of tobacc 3.
The sale of tobacco is still at.e
monopoly in Sin.
In the March 15
Ibtcica
The Catholics Against Franco
A report from the interior on the grow z
friction between Church and State
Spain.
Union, for What?
Xavier Flores
The internal political situation i Spa
in relation to the political parties in exi'
The Example of Doctor Zhiva)
Juan de Toledo
Subscribe to lberica for your -rienth
Annual Subscription Rate: $3.00
IBERICA PUBLISHING COMPANY
112 EAST 19 STREET NEW YORK 3, Ikr t.
FEBRUARY 15, 1959
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LATE NEWS
From our Correspondent in Madrid
THE FLIGHT OF CAPITAL
,The scandal over the flight of capital continues to be
the number one topic of conversation. No one knows
where it will all end, but there are various theories
afloat: those closest to the government insist that the
funds' will be repatriated, others that only a token part
will be brought back. The Falange has taken a very
militant position, insisting that the names of all in-
volved be made, public. However the general belief is
that those who will "pay the piper" will only be the
minor scapegoats.
ANDORRAN BORDER CLOSED
Opus Dei continues to present Ullastres, Minister of
Commerce, as a "purist", but it is known that the
transfers of SPanish capital to Switzerland were not
made by the agent of the Swiss bank in person. Many
of these transactions were done through the Banco de
Cr&lit� of Andorra, whose Board of Directors includes
r. Ullastres. We should mention that the Banks of
Andorra are not required to make their balances or
the names of the members of their Boards of Directors
public.
The afore-mentioned bank has an outstanding mem-
ber of Opus Dei as its director, namely, Rafael Termes,
son of a shoe manufacturer of Sitges, (Barcelona). The
President of the Bank, also a member of Opus Dei, is
Sr. Ribalta, a businessman who owns a refrigerator and
radio store on the corner of Pasco de Gracia arid Di-
putacion Streets.
The bora.. at Andorra has been closed since Janu-
ary 27 by & .rs eftlie Spanish (3evernment to all in-
dividuals of Spanish nationality. All safe-conduct and
other passes have been indefinitely cancelled. Further-
more, all Spanish police commissariats have received or-
ders to suspend the issuing of passports and safe-
conduct passes for Andorra.
THE SITUATION IN MOROCCO
The situation in Morocco has become more tense. In
the course of a press conference held on January 15,
Prince Moulay Hassan alluded to foreign interference
in Morrocan affairs, stating that arms taken from rebels
in the Rif were proof of this. Six days later the gov-
ernment of Morocco sent a note of protest to Madrid,
just when Castiella was in Cairo. This note enumerated
a series of incidents in which Spanish agents operating
out of Ceuta and Melilla seemed to be involved. Fur-
thermore, the Rabat government claimed to have cap-
tured several Spanish subjects who were fighting with
the rebels. To make things worse it has become known
that a well known rebel has sought r?fuge in a Spanish
garrison, either Ceuta or Melilla.
Judging by the official atmosphere. in. Madrid, the
matter could originate in the secret services attached
to the Spanish Army stationed in Africa, without the
will, even against the will, of the Spanish Government.
It should not be forgotten that the incident of Tarfaya
(near Ifni) last year was provoked by the Spanish
military in Morocco acting on their own. But now the
Goveitiment, to be on the safe side and avoid respon-
sibility for future incidents, has circulated rumors of a
"strong Soviet penetration" in Morocco, based primarily
on the no doubt excessive number of Russian diplomatic
and consular officials in that area.
A REORGANIZATION OF THE GOVERNMENT?
Indications that Franco plans to form a new govern-
ment have led to a lively race for power. One con-
stantly hears new rumors of the latest groups aspiring
to power, but in general they can be divided into the
following four categories:
a) The return of Arburila, (former Minister of Com-
merce: supported by a goodly number of Basque in-
dustriolists and businessmen.
b) The Solis-Giron team (Falangist), which, with
the support of the vertical trade sin dicatos, outlines an
economic plan which includes devaluation without call-
ing it by that name.
c) Right-wing Christian Democracy, which consid-
ers itself most capable of effecting integration into Eu-
rope and of accomplishing a neo-liberal reform.
d) Opus Dei, which is represented at present by
Ullastr,s and Vigon in the Government, but winch at
the same time plays the monarchist, even the anti-
Franco, card.
MORE STATIS7ICS
Figures released recently by the National Economic
Council indicate an increase in the national income for
1958 of 4.3% over that of 1957. According to figures
prepared by the Banco Central this increase is 3.8q,.
En either event the total increase is much less than that
of the previous year (8.2%) and of the average in-
crease for the entire. period, 1950-1958 (6.6%).
According to the Economic Council agricultural in-
come did not increase at all; according, to the Banco
Nacional it increased 2.1%.
Average wholesale prices increased 8% during 1953
and retail prices 14%.
The report of the Banco Central caused a sensation
for its, revelations concerning the deficit in foreign
credit reserves and the decrease in the production ,of
iron and the exportation of pyrites due to conditions
of theivorld.,ntarket. Above all because this report, con-
trary to official optimism, declares that the � inflai mist
tendency persists and that this has led to the depre-
ciation or the peseta abroad.
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in which the country's problems could be posed in
realistic terms.
Yet if we wish to seek this way, serenely, paying
attention to reality and without prejudice, then I
believe that there is reason for optimism. Here we
have as positive factors:
a) The situation of the regime, which we have
tried to explain earlier.
b) The simultaneous disintegration of the regime
and the exile. I believe that we are reaching the final
moment of this disintegration, the final disintegration
of the situation which resulted from the Civil War,
while within this general process we are also witness-
ing a slow process of regeneration and resurrection.
c) The conviction of all who amount to anything
in the regime that it is definitively doomed.
d) The desire of all who are estimable in Spain,
within the country and without, to build a country
inhabitable for all.
e) The previously alluded to awakening of the
masses and the generalized nature of the opposition
among young intellectuals and students.
If this analysis is correct, then these factors can
give us a clue to the future. In any event the regime
will not fall without the express or tacit consent of
these three sole organic structures of which we have
spoken. A mass action which would sweep away
existing governmental structures is unthinkable in our
country and will be for a long time. But I do not
believe it to be impossible for that express or tacit
acquiescence to be gained.
No doubt the Army would prefer to retain its
present privileges, but I believe that most of the mili-
tary men know that this is impossible. Furthermore,
the Army is demoralized by the awareness of its great
historic failure. For example, ignorant as arc the
military men of life in the modern world, they be-
lieved that American aid would suffice to solve all of
Spain's economic difficulties; to them it is a mystery
why the beginning of this aid coincided with the
lowering of the peseta and the rise in prices and the
cost of living in general. Another demoralizing factor
has been the regime's failure to form its youth in its
own image. When one hears a young man named
Kindelan declaring that no longer are there two
3 I wished to clarify this allusion to the Church by speci-
fying the present Spanish hierarchy. It is obvious that I am
not here referring to the Church as a universal organization,
but neither am I referring to the totality of the Spanish
Church today. One must keep in mind the promising phe-
nomenon of the appearance of a young clergy with a true
social conscience.
Spains but only one, a peo-
ple who fight for freedom,
then one can assess the ex-
tent of this failure. Finally,
the true great failure of the
Army, the loss of Moroc-
co, that "home of the Lib-
eration." The absurd Ifni
campaign is a good index
of the state of mind of the
Army in this respect. In
brief, though I do not be-
lieve that the Army would
draw its sword to over-
throw the regime, neither
do I believe that it would do so to defend it.
Similarly the Church, or the present ecclesiastical
hierarchy,' that is, would prefer the maintenance of
the regime. But the Church knows even itetter ttait
does the Army that the days of the reginat are Tim-
bered. Its attitude is fraught with doubts and va ctlla-
dons; on the one hand it fears a withdriiwal d- its
support from Franco as it knows that this would
precipitate his immediate downfall; but at the sa., ne
time it fears the results of unconditional supper: of
the regime. The operation "preparation for th:: u-
ture" is already underway in the activity of Bishop
Herrera in Madrid. This "Christian Democratic� op-
eration undertaken by Artajo, the director of Catho-
lic Action, Bonet, and others, blessed by the Papal
Nuncio and the Government, has, in reality, cry
little that is democratic to offer. Its ideal is the per-
petuation of the present situation under more ac:-it-
able forms, more or less democratic, depending on
circumstances. But at the same time an authe,ttic
Christian democracy is arising in Spain, and no dcibt
one day the Church will conclude that after all ;1 is
better to back a Gil Robles or a Jimenez Fern6nciez
or anyone rather than to continue in the em1)1,�re
of a regime in its death agony.
Finally, we have the world of finance. We pckc
earlier of Spain's financial situation. It would teem
that the "moment of truth" is approaching Onl; the
other day the German minister, Erhardt, said to me
journalists here in Paris that Spain cannct iiue
to receive foreign aid if she does not decide on a co-
herent economic plan, along with the sacrifices which
this would entail. When the lean years come, wouict-ft
it be better to confront them in a situation w,th
greater guarantees of political stability? In any case
the economic situation will force Spain's integr ti ori
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into the world of today; it implies the absolute ter-
mination of that airtight glass bell in which Franco
has been able to maintain himself so well. The results
cannot but be beneficial. Of Spanish capitalism we
can say the same that we have said of the two other
structures: it will support Franco, but it will not risk
its fortunes to cure an illness which could be mortal.
* *
So what is to be done?
If we take a long range, historic position, then the
outcome could not be more certain. In Spain some
economic and social forces have developed under the
regime that do not in any way fit into its institutional
and ideological scheme. There can be no doubt but
that these forces will continue to mature and will
sweep away all of these years of opprobrium without
leaving a trace.
In my opinion one should take this historic view-
point. One should favor, enchannel and organize these
new forces. Furthermore I believe that this position
is the most rewarding from the short term point of
view as well, for two reasons: first, because the co-
herent development and action of these new forces
are what can influence the three organic structures
of which we have just been speaking; secondly, be-
cause it is in the course of this development that the
unanimous agreement of the different elements of
the opposition can spontaneously take place.
1. believe that this action should be
based on two principles:
On the one hand we should tirelessly
anticipate the ideas of a national recon-
ciliation. The present situation can only
be overcome when people are really
convinced that this is possible without a
danger of the execution of the innum-
rable death sentences that so many
Spaniards harbor in their hearts against
their compatriots. And this brings us to
the concept of a dialectic solution. The
victory of dialectics does not presume
neutrality or suspension of judgment
with respect to the Civil War, or that
one need dispense with its themes for
tactical or emotional reasons. It is rather
a matter of the dialectical merging of
opposites in such a way that, once a
new synthesis has appeared, it would
make no sense to speak of the past ex-
cept as a historic event. Let us let the
dead bury the dead.
On the other hand one should work along con-
crete lines. One must let the people know what their
country is like and what it could be like some day;
one must point out the great evils of the country,
but in a purely objective and technical way, without
lapsing into rhetoric. One must propose a precise
plan for reconstruction, and for social and economic
development; a plan that is prudent and positive and
free of fantastic ideals or demagogy; a plan which
does not pose imposible objectives or too many ob-
jectives at a time; a plan that is radical in the sense
that it attacks the basic problems of the country and
effects great structural changes. My fellow members
of the Agrupacion Socialista Universitaria and I com-
posed a statement recently in which we said, in part,
"We believe that there is nothing more revolutionary
than the scientific approach, which means to recog-
nize that which exists, and to transform it according
to a strictly scientific plan."
Finally, as I bring this article to a close, I must
say that I am optimistic. I am optimistic because the
Spanish people are as good subjects as they have
always been, and I think that when the regime comes
to an end we are going to meet once again with a
people who are young in heart and who will gladly
take up the ways of the future. I am optimistic, also,
because I believe that there is something which is
changing in many Spaniards. I believe that many
Spaniards are cured of the old rhetoric, and are in-
spired by this objective spirit which is
something new and hope-inspiring, not
because it is unheard of in our history,
as we have always had minorities en-
dowed with this spirit, and Costa and
Giner are good examples of it, but be-
cause to date I do not believe that we
have had an example of an entire gen-
eration having proposed to itself as a
collective task a calling for the empiric.
In mentioning Giner I recall how
those two great masters of contemporary
Spain, Pablo Iglesias and Francisco
Giner, included in their teachings the
idea of concrete and continuous effort:
when Giner died Machado asked for a
period of mourning of work and hope.
Who knows if after so much time and so
many catastrophes the seed which they
sowed will yet bear fruit! For we all
dream of a new Spain. So let us leave
the past and look toward the future.
Paris, January, 1959
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PROBLEMS OF SPAIN'S ECONOMY
The following is a digest Of a lecture with the above
title delivered on October 9, 1958, at the University
of Barcelona by a visiting professor of Economics, Fa-
bian Estape of the University of Saragossa. The text of
the lecture has been published in pamphlet form by the
National Federation of Students of Catalonia.
AGRICULTURE HAS NOT KEPT
UP WITH INDUSTRY
In most backward countries economic progress has
been headed in one direction only, industrialization.
This has been the case in Spain. All production indices,
official statistics and other recent studies demonstrate
the static nature of Spanish agriculture in contrast to
an expanding industry.
Agriculture and industry have moved in different di-
rections and at different rates of progress in Spain. Not
only has agriculture failed to keep pace with industry,
but in many cases it has gone backward. When one
realizes that the indices of production in most crops
are only slightly higher than those of 1935 (and in
some cases lower) whereas the Spanish population has
increased at a proportionately much greater rate (over
250,000 a year), then one can understand why the
per capita food supply has decreased. The recent large
imports of food products show to what extent the na-
tional agricultural production fails to fill the country's
needs. If a change in policy is not effected then the
result will be that supplementary food will use up the
main body of American aid without however guarantee-
ing an adequate food supply for the nation.
Industrialization should be synchronized with a mech-
anization of agriculture, first of all because the expor-
tation of agricultural products generates the foreign
credits for the importation of much needed capital
goods, and secondly because a mechanical agriculture
releases labor for the industrial centers. But when the
rhythm of industrialization is speeded up without an
accompanying speed-up in agricultural development,
when emigration from the country to the city is only
due to intolerable living conditions, then all that is
achieved is an aggravation of the housing problem with
the congestion of human beings in insalubrious slums
and shanty-towns; all that is just the opposite of genu-
ine economic progress.
The development of Spain's agricultural resources in-
volves a special need to intensify the cultivation of live-
stock. The principal herds of sheep and cattle are in-
ferior to those existing in 1935.
Seen from a long range view Spanish industry itself
has failed to achieve a harmonious development. In
general, manufacturing has advanced fai moo apidly
than has basic industry. Spanish industry Las been
greatly handicapped by bottlenecks that const cn ly re-
cur because of the shortage of power .ind bele ma-
terials such as sheet-metal, copper, cement, It Fur-
thermore basic industries have been retarded by the
official price-fixing policy which has dinninishccE their
chances of being self-financed. These basic Ministries
have encountered difficulty in attracting capital invest-
ments. In short, the industries that are most .accessary
to the nation's economy are the ones that an -:f least
interest to the private investor.
A sound industrialization process must be planned in
long range terms. To begin at the end fould be disas-
trous. A country going through tills process has a greater
need of basic industry than of an automobile industry,
for example. The experts of the international onornic
cooperation organizations who have made on ihe spot
studies of industrialization in under-developed cmmtries
have pointed to the tendency of such countrie s to em-
phasize a type of industry which we might c311 "in-
dustries for show."
Another serious problem facing Spanish industry is
that of the renovation of capital equipment. Nt the
moment few Spanish industries could stand e x�cti a
hint of foreign competition, in spite of the ]ow wage
level. One often hears it said that this _situation is due
to the difficulty in obtaining import licenses, and I
dare say there is something to this, but it 1 not the
only reason. In our country industrialists have always
tended to postpone the replacement of existim: indus-
trial equipment, preferring to make new in �t Chalons
instead. But the industrialist who chooses to dostpone
the replacement of existing machinery, preic:-.ing to
build a new plant, is not contributing effe,ti-Tely to
the national progress. An economic policy which guar-
antees a genuine, sound and balanced economic devel-
opment is neither easy nor gratifying.
FINANCIAL PROBLEMS
The problems inherent in industrial expansion lead us
to a consideration of financial problems, a,; .or the
moment most of the big concerns of the ccur try are
meeting great difficulty in finding capital fc the fi-
nancing of their production schedules.
The State's withdrawal to a secondary position in
the capital market has not brought the anticipated
stimulation of private industry because of a �.-ries of
circumstances and factors-- largely psychological - which
have brought about a tendency to hdd back on pri-
vate investments. Many companies of vital iin:,ortance
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to the national economy are having great difficulty in
finding capital. A profound reform is required in the
capital market of an economy in which it is far easier
to raise capital for the construction of a football stadium
than for a power plant. Investment in essential indus-
tries should be made more financially attractive, and
investment in superfluous enterprises should be limited.
This has always been the case but it is much more
so now when a great extent of Spain's economic devel-
opment is being financed by inflation. Inflation is like
taxation, but it is the most unjust of taxations as it
weighs most heavily on those who live on fixed incomes.
There are times when resources raised through taxation
and private investment are insufficient and no resource
remains except inflation. But this must not be over-
done. After a certain point inflation becomes self-de-
structive. Instead of serving as a stimulus to production
it leads to social chaos and a distortion of values.
In our country the disequilibrium between savings
and capital investments has been very considerable dur-
ing the last few years, so much so that in order to re-
tain a certain level of invested capital it has been ne-
cessary to constantly increase the pressure of inflation.
Let us consider some figures indicating the extent of
this phenomenon. The fiduciary circulation of 30,000
million pesetas in 1950 rose to 65,000 million in 1957,
but the production increase mobilized in part by this
increase in fiduciary circulation was proportionately
very much less. However if instead of the fiduciary
circulation we think in terms of the much more sig-
nificant index of the total means of payment in the
hands of the public, then we find that this increase
has risen from 66,000 million pesetas in 1950 to 167,000
million in 1957. This difference has been financed by
inflation.
FOREIGN COMMERCE
Foreign commerce is of enormous importance to Spain.
Lack of historic perspective leads some to attribute spe-
cial significance to these last twenty years with respect
to the isolation of the Spanish economy. The truth is
quite different: the last twenty years have merely re-
inforced a tendency which dates back to 1900. The be-
ginning of an orientation of Spain's economy toward
the principle of the substitution or "nationalization" of
imported goods was the great victory of the Spanish
protectionists of the turn of the century. For many
years efforts were made, with the help of a protective
tariff, to manufacture or reproduce whatever products
were being imported. It was in this way that the Span-
ish economy became divorced from the outside world.
A significant index, that of the volume of foreign
trade in relation to national income, tells us that we
continue to be the Western European country with the
least foreign commerce, or the country with the most
"closed" economy. In this we have hardly been an ex-
ception since the first of the century, but today we are
the exception in Western Europe. Ever since 1900
Spanish industrialization has proceeded with an eye
to the substitution of import products, and it has bene-
fitted from a protectionist policy; later, isolation obliged
her to continue on a path from which the other coun-
tries have withdrawn.
The European economic climate today is quite dif-
ferent from what it was 20 years ago. A series of in-
ternational economic organizations all relate to an ex-
tensive and intensive trend from which we cannot af-
ford to remain apart.
There have been times when economic isolation has
had its advantages, times when the Spanish economy
did not reflect and suffer from the ups and downs of
some other national economies; but today the price of
isolation is too high. It is a price which cannot be paid.
Now measures adopted within the last few months
indicate that Spain has decided to join this interna-
tional economic movement. But first Spain's economic
policy will have to conform to the stipulations made
by the various organizations.
The most extensive changes will have to be made in
the field of foreign trade. For example, admission as
a full member to the 0.E.E.C. requires the fulfillment
of obligations included in the Code of Liberalization.
Should these be fulfilled then Spanish commerce in the
immediate future would be conducted under multila-
teral conditions. No longer would the countries dealing
with us be obliged to import from Spain in order
to liquidate their credits here; in a sense Spain's ne-
gotiating strength would be diminished.
This change would take place under highly inauspi-
cious circumstances. Without needing to resort to a
profusion of statistical data we can easily convey an
idea of the extent of the problem by examining the in-
crease in the foreign trade deficit in the last few years.
In 1950 exports totalled $405,000,000; by 1957 they
had risen to $475,000,000, an increase of not quite
20%. But the picture is quite different when it comes
to imports: in 1950 imports totalled $390,000,000, but
by 1957 they had gone up to $862,000,000, an increase
of over 100%.
This enormous increase in imports is due to the policy
of industrialization, and the previously alluded to defi-
ciencies in agricultural production. A limitation of im-
ports would be out of the question because of the
shortage of supplies in many areas of the Spanish
economy. On the other hand the problem is aggravated
by the difficulty in increasing exports; this is not abso-
lutely impossible, but it would require a basic revision
of the methods pursued to date.
In brief, the problem is a difficult one because it
involves a need to increase foreign credit reserves at
a time when the outlook for export increases is very
low, and the need for more imports is imperious.
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Editorial
LIQUIDATION PERIOD
The meeting of anti-Franco monarchists held in Ma-
drid on January 29 was heralded as a significant
event in the international press. Precisely because
freedom is so limited in Spain occurrences which
might pass unnoticed in other countries are scrutin-
ized with rapt interest by the public opinion of Eu-
rope and America.
We, who have been following the course of the
Franco regime for many years and who harbor no
illusions on this score, must acknowledge that this
meeting held a very especial significance, both with
respect to what it tells us of the situation of the re-
gime and to what it represented in itself.
The banquet held in a Madrid hotel was held
with the permission of the police. Its organizers had
fulfilled this necessary prerequisite and the meeting
was officially sanctioned. Such a concession in the
Spain of today means that the leaders of the regime
did not oppose the meeting, as all gatherings of a
political or sociological nature are forbidden.
With respect to the meeting in itself, it signified
the birth of an anti-Franco political party. The fact
was announced during the meeting and leaflets out-
lining the bases of the program of the new party,
"Union Espanola," are already in circulation.
In granting permission for the meeting the Fran-
co authorities did so in full awareness of its signifi-
cance, as some of its organizers, Srs. Satnistegui and
Tierno 'Galvan, for instance, had been arrested a
year ago for "illegal activities." None of the speak-
ers or organizers have been arrested since the meet-
ing; the authorities limited themselves to merely sum-
moning some of those present to police headquarters
to make depositions. Such was the tenor of General
Franco's reaction to the meeting; this precedent in-
dicates that the regime now consents to, even toler-
ates, meetings which are outside of its own law and,
for that matter, the formation of political parties
other than the Falange, and which are opposed to
the regime itself.
Those attending the banquet included monarchists,
representatives of the Army and banking and finan-
cial worlds, and some members of the group called
"Socialista Independiente." Outstanding among the
military men present was General Aranda, longtime
opponent of the Franco regime, and among the civil-
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ians of the political center, Sr. Gil Robles.
The political party emerging from this meeting
has a monarchist and essentially conservative char-
acter, and, according to its announced progrnin, it is
open to all political groups, including the anarchists,
but with the single exception of the commurrst,.. The
new party counts, as one of its membcrs ha i gated,
on the backing of the Christian Democrats :n the
liberals, represented by Professor Tierno Galx an, and
on the group named "Socialista Independientc." In
any event we note that representatives of al: these
tendencies attended the banquet. According t.) our
information the party's platform includes the follow-
ing points: the expulsion of General F) anco at h the
restoration of a parliamentary monarchy with muted
powers.
Seen from a distance, these development ,vould
appear to represent the first direct blows aimed at
the Francoist edifice to make their mark. E true
that this political front, "Union Espahola,"
a year ago already,' and it is also true that S Sa-
trUstegui has felt obliged to state that "Ur ion Es-
panola" is not a political movement but a '-noral
union", but it is no less true that Franco's message
in which he bluntly stated that Spain is alit dy a
monarchy and that he will be its ruler for hi,: rest
of his life, was what brought this previoush :nnor-
phous political group out into the open as
political party.
This party has not yet reached an agreement with
the traditional republican and socialist groups of with
AcciOn Democratica Social, the group headed by
Dionisio Ridruejo, but inasmuch as "Union Espa-
nola" is essentially a monarchist and conss ative
party it is logical to suppose that the democra he cen-
ter and left of center groups will await an c,r:asion
to follow in its footsteps; nor could the Spans1 dic-
tatorship very well refuse them the permissiph that
it has granted to "Union Espanola" to hold t meet-
ing when the time comes for them to annourr.; their
minimum basic programs.
In brief, regardless of how one interpret--; these
events, it cannot be denied that the regime i> nter-
ing a period of liquidation. General Franco has been
pushed to the edge of the stream; the force that
have backed him are edging out from und, r. and
obliging him to leave. So far everything wouL lead
one to believe that General Franco will choo,4: the
prudent course of leaving on the bridge whi h his
compatriots are holding up for him in time to ,void
a bloody conflagration.
1 Sec lberica, May 15, 1958, p. 14.
new
FEBRUARY 15. 1959
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'3
Reports from our
correspondent in Madrid
A COUNTRY IN BANKRUPTCY
This could be said to be the case of the Spanish
Government today, were it not for the fact that it
is something of greater import than a private business
concern. Nevertheless the fact must be faced that the
Spanish economy is as good as bankrupt, because the
deficit in the balance of trade is greater than it was
in 1957, because the nation's gold reserves have
dwindled to less than $60 million, and, most impor-
tant of all, because the recent developments in the
rest of Europe have left Spain with her back to the
wall.
Do you remember when our Government was
boasting that Spain was as good as a full member of
the 0.E.E.C., the International Monetary Fund, even
the European Common Market? Now we find that
all of this is far from the case, as Franco would never
accede to the conditions for membership so logically
stipulated by these international organizations. Today
everyone in Spain is shaking his head in despair and
only a miracle can stave off devaluation and partial
convertibility (all of which adds up to bankruptcy, or
else to the turning of everything over to foreigners
in order to stay afloat).
It has been said that Spain missed the streetcar
of the European economy, and now that the latter
travels by bus the fare is higher and it is more diffi-
cult to catch up with. Now if Spain fails to get into
step with the economic measures taken by the 17
countries of the 0.E.E.C. and the European Com-
mon Market as well, then she will be the victim of
economic discrimination in that she will not benefit
by the lowering of protective tariffs in these countrie.s
by 10%; as the regime will have to pursue its pres-
ent policy of bilateral trade treaties these countries
will do much less business with Spain and the value
of the peseta will become more and more fictitious.
But, on the other hand, should Spain decide to
catch up with these European countries then her
shortage of credit reserves, industrial weakness and
low productivity (with high costs) would all lead to
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a liquidation of industries such as steel, metal, chemi-
cals, and automobile manufacturing, along with an
aggravation of the crisis in the textile industries, in
exchange, of course, for an improved export market
for agricultural products such as the citrus crops and
wine. This situation would also lead to a devaluation
of the peseta, which would make it seem advisable
to devalue it to a sufficiently low rate of exchange
(at least 62 to the dollar) in order to achieve a
minimum stability. The situation is made far more
complicated by the shortage of credit reserves, which
renders the entire operation truly hazardous.
This is how things have stood, in general, since
the first of the year. The Caudillo did not choose to
refer to such gloomy subjects in his end of the year
speech, but the crisis was already being confronted
in economic and financial circles. The Consejo Eco-
nOrnico Sindical met in permanent session to discuss
the need for adjustment to the new situation in Eu-
rope and to devalue the peseta. Then the Minister
of Commerce, Ullastrcs, not wanting the Falangist
faction to take the lead, discussed the problem fully
before the Council of Ministers. It was necessary to
establish immediate international contacts, and in the
interior to count on the cooperation of the Consejo
Bancario, the Bank of Spain, Chambers of Com-
merce, etc., thereby neutralizing the head-start of the
Falangist C'onsejo. Abroad, it was necessary to know
the definitive conditions for admission to 0.E.E.C.
and the economic community in general, and to find
out the chances of obtaining a loan (from a coun-
try or the International Monetary Fund) should it
become necessary to declare the convertibility of the
peseta.
TALKS WITH GERMANY
A secret meeting was held in Paris between Ullastres
and the German Finance Minister, von Eckhardt.
The former returned after two days with Germany's
reply: No oxygen tanks, no need to ask for loans
without offering something in return. Spain must
adjust herself to realities, devalue her currency and,
if necessary, "take in a notch in your belt." A similar
reply came from 0.E.E.C. sources: Spain must re-
lease her exchanges and devalue the peseta. In short,
the Germans go on baiting the hook with talks of
fabulous loans, but only in exchange for a real con-
trol of key industries in Spain.
In Madrid everyone has believed devaluation to
be inevitable; the. stock market soared to fabulous
heights, something unheard of since 1956. Exporters
are encouraged, but certain industrialists (the textile
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manufacturers) are grinding their teeth.
But the Government has to play for time; to do
so it has to pretend that nothing is happening here.
KRUPP EYES SPAIN
As it is fashionable, these days, to take the train to
Paris, Martin Artajo and Ruiz Gimenez (former
Minister of Education) took it also, on the pretext
of attending a meeting of the European Center of
Documentation. There they met with high French
officials, but, like Ullastres, they did not neglect their
German contacts either. To tell the truth, the so-
called "Christian Democrats" like Martin Artajo and
Ruiz Gimenez are attuned to the party of Chancellor
Adenauer through the Vatican. And the industrial-
ists? Who knows. What we do know is that the latter
favor devaluation, loans from Germany and a capi-
talist renovation copied after the German one.
The latest to take the train for Paris was Sr. Solis,
accompanied by three economic experts. Their des-
tination was Paris, and, though this was not men-
tioned, Bonn.
Why this multiplication of emissaries? It probably
is a manifestation on the economic level of the strug-
fgle going on for the hegemony of the new govern-
ment being prepared by Franco. All coincide in con-
ferring with Germany. It would seem that manna
is expected, not from heaven but from Germany. But
it is manna which will not be graciously conceded.
It is no secret that the Krupp trust, which is coming
back into its pre-war own, has its eyes on the Aviles
steel combine in Spain. Furthermore, it seems almost
certain that Krupp will save the Madrid metal works,
"Manufacturas Metalicas Madrilelias," from its pres-
ent difficulties. With this Krupp will become the
owner, whether directly or indirectly, of the com-
pany. That is, if the French company Wender does
not get there first, which also is a possibility.
In brief, unless a "suicidal" path is taken, Spain
will be obliged to devalue the peseta. If she succeeds
in obtaining loans then she will go on to convert].
bility. For once, she cannot stall for time. Decisions
must be made within a month, or a month and a
half, no matter what Ullastres may say.
A "GLORIOUS FAILURE"
To fill out this dismal picture of the economic scene
in Spain I should report that foreign sales of Spanish
oranges are 20% lower than they were last year at
this date; purchases have gone down particularly in
England and Switzerland; competition with Israel is
very stiff in the latter country.
Export trade in footwear has gone down 51/ un-
der that of last year at this date.
Steel produced in Aviles has been export& , 'Att a
good deal of this had to be used to pa), for 9b ma-
chinery imported by the Institut� National In.-
dustria. As the cost of steel production in Ac Iles is
higher than the price of steel on the internaiional
market, the entire operation has been, as an !.N.I.
official has admitted, "a glorious failure." Li!, glor-
ious has been that of the Escombreras plan- where
about 4,000 million pesetas (about $100
have gone down the drain in a vain effort to e-aract
oil from bituminous schists!
Finally, do you know that the fiduciary
tion leaped 3,500 millions of pesetas last o onth,
bringing the total figure up to 72,518 milli( ri,-? All
in all, there is not much call for optimism ,t the
economic front.
IN SEARCH OF PRO-ARAB POLITICS
As the reader can readily understand, the Earopean
imperative is much greater than ever beta,- for
Spain; this the Spanish Government realizes, to
be fair, one must say that it has realized it fo some
time now. And this most of the opposition :orees
realize as well. But now, paradoxically eno14,11, the
Government is seeking to revive its pro-Aral, policy.
This was the reason for Sr. Castiella'N trip Can()
in January, this and an attempt to keep the 1lalians
from getting ahead in the role of mediator as
we know the Caudillo has always coveted. hut in
spite of the smoke screen of propaganda, offi,'.,1 dec-
larations, etc., it cannot be said that the olyit dives
of the trip have been achieved, not even ,N ith re-
spect to settling the matter of President Nass, .'s of-
ten announced visit to Spain. As to the Itali in>, "by
chance" Sr. Fanfani was outside of Rome whi u Cas-
tiella was en route to Egypt, and on the la te,�-s re-
turn trip Fanfani was tied up in an uncxpecte:i cabi-
net meeting. The Spanish Foreign Ministei Tad to
be contented to talk with a high official of thItalian
-
Ministry of Foreign Affairs, Sr. Stranco.
To return to the Arab countries: becaus A the
lack of concrete agreements, the Spanish Forei en Of-
fice is now preparing a "Millenium of the Caliphate
of Cordoba," with which it hopes to attain a new
prestige in Arab countries. This is just as vc U, be-
cause things are getting pretty involved in Mcrocco,
where the Government insists that it has 2: oof of
Spanish participation in the wave of distuar reS in,
the Rif.
FEBRUARY 1 5 , 1 9 5 9
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MORE LABOR UNREST
Labor unrest has increased because of the negligible
benefits obtained through the much vaunted offi-
cially sanctioned "collective bargaining contracts."
Disappointment has been so great that the press has
received orders to try to mitigate the situation. On
January 15 Ya published an editorial on this subject
from which we reproduce the following gem:
"The laborers are mistaken in being disappointed
every time that all their aspirations in a union nego-
tiation cannot be attained, no matter how legitimate
they may be. To negotiate is, in brief, to compro-
mise."
The forces of the opposition, and even those of the
pseudo-opposition, try to profit by this atmosphere of
restiveness and dissatisfaction which is spreading.
This "pseudo-opposition" includes the so-called
"Christian Democracy" headed by Martin Artajo,
Bishop Herrera, Garcia de Pablo, Ruiz-Gimenez, etc.
This group dreams of a return to power with Franco
staying on as Chief of State, and the opening of an
era of "national coexistence" with certain freedoms
and an increase in the standard of living, thanks to
foreign loans and investments (above all, German
ones). This policy would seem to count on the sup-
port of Rome and the Spanish hierarchy. What is
not known is whether it counts on support from El
Pardo Palace. In the meantime the censor (Arias Sal-
gado, Minister of Information, in person, it is said)
has "taken charge" of three successive articles by
Martin Artajo in which the latter alluded to the
possibility, in agreement with the institutional laws
of the regime, of a separation of the office of Chief
of State from that of head of the Government.
REORGANIZATION OF THE GOVERNMENT
It has been said a thousand and one times that the
-Opus Deist" government is finished and that a new
government will have been appointed by springtime.
Will it be a "Christian Democrat" group, or, per-
haps, the autocratic old-guard Falangists? There is
talk of Gir6n, Elola, and Arrese with them. Another
old-guard Falangist, Suevos, became very violent the
other day at a banquet given in connection with the
awarding of the Falangist literary prizes, saying that
the word "Movement" should always be accompan-
ied by the word "Falange" and that the Falangist
revolution was yet to take place. Solis, the present
Minister of the Falange was also present and tried
to pour oil on the troubled waters. He too could well
be preparing his neo-Falangist combination for the
new government. A Falangism which would include
Arburna. It is quite possible that Franco may con-
sider Solis the best bet to save the situation. This
would infuriate those of the pseudo-opposition of Ac-
ciein Catolica, who assert that under such circum-
stances they would really pass over to the opposition.
But Sr. Gil Robles is not convinced of this and he
keeps his distance from them; even less convinced
is Sr. Jimenez Fernandez, who seems to be the in-
spiration of a "Left-Wing Christian Democracy'
which would have its voice heard on the banks of
the distant Tiber.
A CABINET IN ESTORIL
The monarchists, too, are frowning in anticipation
of such an eventuality [a Falangist-dominated cabi-
net] and reports from Portugal announce the ap-
pointment by "His Highness" of a Council of the
Realm made up of General Kindelan, the Araitz
brothers (Carlist representatives), Yanguas Messia
and Perez Embid, of the Opus Del, and as Secretary,
Gonzalo de la Mora.
Perhaps one of these days the real opposition, the
one which is not in quotation marks, will awaken,
arid then we will see what we will. see. From Bar-
celona come reports of the welcome given by the stu-
dents to the returning professors who had been im-
prisoned last fall; of the strikes in Tarrasa, arid of
an increase in the Catholic opposition which could
well cost Acedo Colunga (who is determined that
the Caudillo take steps against the Abbot of Mon-
serrat) his position as Governor' of the Province of
Barcelona.
And who do you suppose threatened to go on
strike right here in Madrid? The functionaries c:,f the
Bureau of Statistics, no less. When things began to
look serious funds were quickly appropriated so as
to raise their wages.
It is because of all of this that Sr. Ullastres felt
obliged to say to the Spaniards on the radio recently,
"You are not going to have to make such serious
sacrifices as you had thought." Note the word "such";
later there will be serious sacrifices, and this is what
worries Sr. Ullastres and the Government today.
TELMO LORENZO
Madrid, January 28, 1959
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3eptumbe - 1.960
MEMORANDUM FOR THE RECORD:
I discussed the attached letter from Norman Thomas
of August 4, with him over the telephone at some length. He saic
the person in question was now in better shape as regards her
residence here, as John Lindsay, representative in Congresb
from Manhattan had agreed to introduce a bill to cover ier residence
and also they had found other methods in the meantime to contest
any attempt to force her to leave.
I told Mr. Thomas that I did not wish to corresnono
about the matter but I was glad to hear that it was in order and
this would be considered an answer to his letter to which he v as
entirely agreeable.
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UNCLASSOIED
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OUTING AND RECORD SAY
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FROM:
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to whom. Draw a line CIL 05 S corm/ after Jmment.)
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