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

No. 290

Sir: During the course of an interview a few days ago, the Minister of National Defence, Señor Indalecio Prieto, expressed to me his satisfaction with the outcome of the Government’s unexpected offensive [Page 150] against Teruel. He stated that he hoped that the operations there would serve to correct the impression abroad that the Government had been reduced to impotence and was merely awaiting the final blow of the enemy, and expressed the conviction that the Government’s drive has definitely disarticulated the long heralded rebel offensive.

In this connection, Señor Prieto spoke with regret of the inability of his Government to purchase military supplies in the United States, and remarked that our attitude and that of other nations from whom a different treatment might have been expected, had almost “strangled” the Government. As a result, it was reduced to the expedient of negotiating with intermediaries, some of whom were mere adventurers and all of whom exacted enormous profits. In addition to the generally objectionable features of such dealings, the Government could not stabilize its plans or make long-term military calculations, since it never knew when its supplies would arrive or in what quantities or qualities. Nonetheless, thanks to Russia and to Mexico, the essentials were acquired in a fairly satisfactory manner—although he had detected a growing diffidence on the part of Russia “who was fearful that what all the world already knew would be discovered, namely, that she was selling arms to the Government”. He added that contrary to the belief in some quarters, Spain receives no favors from Russia, since she pays the full market price for all that she obtains from that country.

It is felt by many observers that Señor Prieto is the vital element in the present Government, and that his energetic and purposeful direction of affairs is responsible for much of the improvement that is believed to be taking place in the loyalist forces.

Respectfully yours,

Walter C. Thurston