Evening star., 1942-07-13
BY LOUIS NEVIN,
Wide World.

BY LOUIS NEFIN,
Wide World
NEW YORK, July 13,-Generali lis
simo Francisco Franco is steering
the Spanish ship Of state between
the two marker beacons of the p,'.-
Allied sentiment Of the majority Of
his people and The presence of Ger
man troops on Spain's northern
frontier.
At the same time, the short,
plump, Spanish dictator is trying
to repair his country's civil war
damages and get its economy on a
working basis.
The biggest factor deciding the
political and diplomatic set-up of
Spain is the presence of German
troops-generally estimated by neu-
tral diplomats at between six and
eight infantry divisions-in the
Hendaye region of Occupied France.
Franco decided to steer middle
Of f-the-way course between this
German threat. coupled with the
governments official gratitude for
aid during the civil war, and the
pro-Allied sentiment of the mass of
the people-often rated as strong
majority of the population by neu-
tral observers in Madrid.
He chose a policy of non-bellig-
erencv backed up by vociferous,
te-controlled, pro-Axis press.
Reconstruction Slow.
Since the close of the civil war,
Franco has strived to get his coun-
try back to normal but it has been
uphill work with additional set
backs, such as the start of World
War II. most of the way.
Agriculture got back under way In
many parts of Spain even before the
last cannon shot of the nearly three
year civil war which ended April l.
1899.
Reconstruction organizations were
set up to repair the war damage
using forced-work battalions and
plans were laid to build an extern
sive irrigation system so vitally
needed for the sun-scorched farm
lands.
Work was resumed on many prof.
ects which had been started under
the republic and previously. Some
of these. like the Egea de Los Cabal-
leros Reservoir near Zaragoza have
already been inaugllrated. Franco
personally opened that reservoir
early in June.
One of the governments main
problems, however, is the lack of
food, which is strictly rationed.
Widespread black market activities
have been one of the results.
Many small black market opera
tors are being arrested but the mar
ket continues. Nearly every cabinet
communique brings a list of busi-
nessmen or companies fined varying
sums for such activities. Often the
fines total in the millions of pesetas
and many are sentenced to forced
labor battalions.
Black Market Enormous.
The men at the head of this ma
ton wide traffic, however, have not
been caught
The black market in Spain, as in
other countries of Europe, has as
sumed such proportions that it is
5okingly referred to as the nations
number one commercial organiza-
ton. 1t is also an important source
Of revenues, for nearly a million
pesetas in fines are received from
1t weekly.
Anything and everything, from
foreign currency to cigarettes from
the Philippines-they were getting
scarce when I left Madrid-can be
bought "estraperlo" as the illegal
market Is known in Spain.
The peseta is officially quoted at
seven to the dollar note and 12.46 to
the dollar check. Estraperlo, how
ever, the dollar is sold for around Is
pesetas.
Sugar, coffee and meat of all kinds
are quoted in the black market, re-
spectively, at l3, 18 and pesetas the
pound.
The government blames the black
market for great part of the food
scarcity.
Much of the food lack, however. is
directly due to the civil war. Many
Of the cattle were killed then and
not replaced. Many tillable fields
still are unusable because of the
danger OF exploding bombs or hand
erenades.
Bread Is scarce, authorities saw.