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- 15 -hungry. The workers, who are paid the same salary as before, cannot afford to deal on the Black Market and he says that there have been cases at Altos Hornos where workers have fallen dead from hunger at work. This causes discontent although it is not openly expressed. Now they have appointed wardens in the factories in Bilbae, and the workers receive larger rating. Here he is contradicting himself, because cocotines he says that these wardens ware demanded cy the workman (which would be a demonstration of resistance) and sometimes he says that the directors asked for them. He says that in spite of everything he cannot understand why when food production is on the increase the workers are so badly fed. Later he says that they watch thes closely and force then to work without ceasing. He relates (although, we inw no details) that the middle class does not feal the pinch like the workers.POPULAR ORGANISATIONS. They exist fast as they did before. He cites the Club Andauchu which organises excuratong. These organisations are not con- trolled by the Falange. Young people are as gay as before, and dance and go to the mountains.ARMY- He refers above all the discontent of the families because their sons have to spend four years in the army. Es says that they demonstrate their discontent and that they all want to be demobilised. But this open discontent is confined, he says later, to private conversation.REPORT No.356.LUIS FARHAD - a Maxican student, who has always lived in Oljon, Spain. Es Yasily is comfortably off and he is going to Maxico to join his father as he lived on what his father sent him in dollars and when this was forbidden he decided to leave Spain. He is an ardent Falangist. He is ignorant of all problems of the working and middle class. He only associated with people who were very well off, and especially with Falangist students. He is very cultured.He says that he was in Of jon at the beginning of the war and remained there till now, as he was a Mexican he was molested by neither party.HUNGER - He roundly asserts that there is no hunger, only a scarcity of certain articles. That with rationing there is not enough for one mouthful but that he never felt the want of food. That the olive oil ration is 1/8 of a litre overy 15 days, and so on for all other commodities. That the rationing of bread (black bread, since white can only be got on the Black Market) is arranged in three categories, and for that there are thres classes of fards - poor, middleclass, and rich. That the ration of the poor is larger, as they have less money for buying on the Black Market. That at Belmonte, Asturias, the rations are double what they are in Cijon. That rationing is different in each province, and even in different places in the same province. He says that no one is interested in politics, that everyone's daily preoccupation is food. He says that it used to make him laugh to see wall-to-do old people who in all their conversations spoke of nothing but the price of beans and bread etc. When ho was asked for facts he says that it is obvious that the poor (by which he seans the workers) who earn 10 or 12 pts. cannot buy anything contraband and live on their rations, which causes them to suffer somewhat from hunger and be very discontented. He says that the fis hunger is caused by the war and the blockade, because as soon as the Spanish war was over there was abundance of everything and free exchange, and as soon as the European war began there was scarcity and rationing. He also says at the same time that the cause of the scarcity is that the Government has bought thousands and thousands of tons of food in case_the.. situation gets any worse. That this is good policy of the "Generalissino's and that the Falange is doing a lot of propaganda, saying that it is much better to keep the food now, whan a lot is coming from Argentine and the U.S., than to eat it now and then if the situation gets worse, have nothing. That the people who are "good stuff accept it, but most people protest and complain. He says that another cause of hunger are the Provisions Committees, which, like those of of jon, are composed of bandits who sell as contraband the articles they are supposed to: divide among the population.KNTRANCE INTO THE WAR -says that Spain will not enter the war, that this isthe opinion of everybody. That all approve the foreign policy of the Government,