852.00/5740: Telegram

The Counselor of Embassy in Spain (Thurston) to the Secretary of State

674. The following is based upon recent conversations with Giral, Prieto, and Zugazagoitia:

(1)
Bilbao. The Government is prepared for the fall of Bilbao but clings to the hope that it may hold out.9 It is admitted that fall will have serious consequences, more political perhaps than military in character—but it is asserted that it would not be a decisive event.
(2)
Control. The Government is not reconciled to control which it regards as unjust, ineffective, and the source of grave dangers. The last London proposal probably will be delivered here today and I should not be surprised if it were to be rejected or acquiesced in under conditions other powers would not accept. Particular disfavor [Page 331] attaches to the “neutral zone” feature which Government believes would restrict its military operations against rebel ports and facilitate the activities of Italian and German warships. Opposition to employment of warships for control service also expressed and utilization commercial vessels with neutral observers aboard favored.
(3)
Internal. Order apparently prevails in rear guard throughout Government territory. Disarming of civilians and Anarcho-syndicalist and similar groups have not been effected to a satisfactory degree. Antagonism toward Communist Party because of its efforts to obtain paramount place very noticeable on the part of the C. N. T. and to a lesser extent on the part of the Socialist Party and the U. G. T. C. N. T. now evinces intention to reenter the Government and has submitted a “minimum program” of governmental action. There is no immediate indication that it will be readmitted.
(4)
Diplomatic Conference. There is much speculation but little authoritative information concerning the conference now in progress here between Government and virtually all Spanish diplomatic representatives in Europe and the Ambassadors to the United States and Mexico. Giral states conference for purpose receiving report on sentiment various countries and coordinating policy.

Thurston
  1. The insurgent wireless station broadcast at 4:45 p.m. on June 19 that Bilbao had just been taken (852.00/5778).