POLICY UNCHANGED

Otago Daily Times, Issue 24850, 25 February 1942, Page 5

POLICY UNCHANGED

THE IBERIAN PENINSULA NEUTRALITY MAINTAINED (Rec. 1.30 a.m.) LONDON. Feb. 23. "The recent decision by the head of the Spanish State, General Franco, and the Prime Minister of Portugal, Dr Salazar, to maintain the neutrality of the Iberian Peninsula is welcomed in London, particularly on economic § rounds," savs the Daily Telegraph's iplomatic correspondent. " Spain, as a result of the war fn the Pacific, is assuming greater importance as a source of copper, tin, and lead. The British-owned Riotinto mines export considerably over half the total output of copper pyrites to the United States, and the remainder to Britain after Spanish requirements are satisfied. The latest figures, for November, 1941, show that the Americans received about 20,000 tons of ore. "German penetration in Spanish business continue- Already Germany has capital in 900 companies, with complete control of several of these interests, largely shipbuilding, but they also include iron, steel, chemicals, oil, and motor cars. Recently, two German missions went to Spain to discuss the erection of a plant to produce 23,000 tons of nitrogen a year and 150,000 tons of sulphate of ammonia. Spain has shown resistance to German penetration, and has even withheld export licences of goods to Germany to exact the equivalent return, and has shown strict compliance with her commitments to Britain."