THE DEFENCE OF MADRID

Press, Volume LXXIII, Issue 22143, 13 July 1937, Page 11

THE DEFENCE OF MADRID

I VICTORY CLAIMED

BY LOYALISTS

| REBELS ROUTED IN NEW | BATTLE i j CAPTURE OF 600 PRISONERS : REPORTED i' ! | | (.UNITED P&X33 ASSOCIATION j (Received July 12, 8.30 p.m.) 1 MADRID, July 11. | The Loyalist defenders of the caplj tal maintain a widespread offensive. ( They routed the rebels in a new j battle, and captured a village, taking j 600 prisoners.

| FRANCO SEEKING LOAN

j SUPPORT FROM BRITISH 1 FINANCIERS? i | NEGOTIATIONS REPORTED IN . LONDON I (Received July 12, 11 p.m.) LONDON, July 12. Negotiations are believed to be in progress between the Spanish rebel j leader. General Franco, and British financiers, for raising a loan of j several million pounds. i | NONINTERVENTION ! DEADLOCK I I - HARD TASK AHEAD FOR BRITAIN MINISTERS LEFT WITH FULL DISCRETION (SUIIiSU OFFICIAL WIRELESS.) RUGBY, July 10. Although the tension has been relieved as a result of yesterday’s decision by the Non-Intervention Committee to invite the British Government to attempt to break the deadlock which is holding up the Spanish control scheme, it would be rash to assume that matters will easily resolve themselves merely because concord has been on the next mode of procedure. On the contrary, it is recognised that a week-end of intensive labour lies before the Foreign Secretary (Mr Eden) and his advisers. They were left with full discretion to make the necessary soundings m whatever way they think best, and they are already addressing themselves with the utmost urgency to their task in the hope of being able to report the results to the full committee early next week. In the British view, either the gap in the sea observation scheme must remain open, or someone must be found to fill it. The granting of belligerent rights, which would un- | fairly assist one side, cannot, in the i English view, be regarded as a sub- ! stitute for the naval control scheme, j On the other hand, the French Gov- ; ernment’s determination to with- ! draw facilities to observers in the [Pyrenees unless the gap is filled within the next day or two is regarded here as eminently reasonable. It is generally recognised that if the British Government can stave off an international breach over Spain, it will have made a major contribution to the preservation of peace in Europe.

Comments Arouse Resentment Newspaper comment on the deadlock is generally restrained, but the comments made by Herr von Ribbentrop and Count Grand! have aroused some resentment.

The “Morning Post” (Conservative), referring to attempts which have been made in various quarters to denigrate the British policy and to represent it as clandestinely partial, says that when it really comes to the point “we find that nobody believes these charges.” The “Daily Telegraph” (Independent Conservative) says: “Though the chance of discovering any generally acceptable plan seems poor enough, the British Government will not be deterred from its search by the unnecessarily provocative language of Herr von Ribbentrop and Count Grandi.”

The “Manchester Guardian” (Liberal) regards the British Government’s task as an unenviable one. It says that since both Germany and Italy supported the proposal to invite Britain to find a way out, it seems that they might be prepared to consider a compromise.

VALUABLES TO BE GIVEN UP

JUDGMENT IN THORPE HALL CASE AMSTERDAM, July 11. The Court, admitting the Spanish banks’ claim, ordered the captain of the British steamer Thorpe Hall, to surrender the valuables on board. The Spanish Government has appealed and the dispute will go to The Hague tribunal. . At the request of the directors of A group of Spanish banks, the Pub*

lie Prosecutor at Amsterdam. Dr. Middleburg, backed by a Dutch warship, on July 4, seized the British steamer Thorpe Hall, commanded by a British captain, but sailing with a Spanish crew. The Thorpe Hall had on board 130 cases of gold, also shares, bonds, and jewellery estimated to be worth £ 150,000, alleged to have been taken from the Bilbao banks before General Franco captured the town. The Court decided on the disposition ot the cases. The Thorpe Hall was under Basque charter carrying gold securities besides general cargo lor South Spain,