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The Vice Consul at Valencia (Wallner) to the Secretary of State

22. A crisis probably precipitated by the unsuccessful communist attempt to seize the Republican Navy in Cartagena has forced Negrin [Page 759] and his Ministers to leave Spain. Power is now in the hands of a Council of National Defense headed by General Casado, Commander of the central army, and including Besteiro and other moderates which is expected to follow the realistic policy. Public reaction favorable and order prevails here and in Madrid.

Wallner