BRITISH LOAN TO SPAIN

Press, Volume LXXVII, Issue 23302, 12 April 1941, Page 10

BRITISH LOAN TO SPAIN

£2,500,000 Provided (8.0. W.) RUGBY, April 10. The Under-Secretary for Foreign Affairs (Mr R. A. Butler) said in the House of Commons that an agreement was signed in Madrid on April 7 by the Spanish Minister for Foreign Affairs (Senor Suner) and the British Ambassador (Sir Samuel Hoare) providing for an advance to the Spanish Government of £2,500,000 by the British Government, to be expended in such manner as the two Governments may agree. Mr Butler said that the agreement was supplementary to the loan agreement concluded on March 18 of last year, and the terms in regard to payment of interest on and repayment of the capital of the loan were the same as in the earlier agreement. It is expected that the great part of the loan will be used for the purchase of foodstuffs and raw materials, of which Spain is so urgently in need. It is felt in London that this agreement marks a further step in the policy of assisting the Spanish Government in the work of reconstruction in which it is engaged and at the same time of assisting neutral countries to overcome the difficulties caused to their national economics by the war. In a speech in the House of Commons on October 8, Mr Churchill said there was no country in Europe that was more in need of peace and food and opportunities of prosperous trade than Spain, which had been torn and tormented by the devastation of the civil war into which the Spanish nation had been drawn by a series of hideous accidents and misunderstandings, and from the ruins of which they must now rebuild their united national life of dignity, mercy, and honour. Mr Churchill added: ‘‘All we seek is that Spain will not become a channel of supply to our mortal foes.”