London, June 30.
Britain may trade recognition of the Spanish Nationalists as a belligerent for German and Italian adherence io the non-intervention principle, authoritative \sources revealed. last night.
The Prime Minister, Mr, Neville Chamberlain, and the Foreign Secretary, Mr. Anthony Eden, met last evening and are reported to have come to that conclusion as the only way to avoid the complete collapse non-intervention in Spain.
This would not necessarily imply diplomatic recognition. Havas' source specifies. Rome. apparently believes that such recognition as a belligerent would give certain advantages 40 Gen. F. Franco and enable him to engage in naval operations against Spain's Mediterranean coast. Latest reports from Rome indicate Italy may then accept continuation of the nonintervention principle.
Portugal has meanwhile informed the British Foreign Office that she could not continue to grant facilities te the British control fleet along th: Portuguese border so Jong as he control system remains undefined and incomplete.
Further, it has become more and more apparent that Germany and Ttaly will not accept the Anglo-French plan for joint patrol of the Spanish coast in place of the four-Power petro and Germany's withdrawal.
After yesterday's meeting of the Non-Intervention Committee, some of the delegates said Herr von Ribbentrap's chief objection to the Anglo-French scheme was that neither government is represented at Burgos.
The scheme is doomed to failure, many believe, so that on Friday the Committee is expected to be compelled to proclaim the end of the non-intervention control and will ask Italy and Germany to make counter proposals. If they refuse, the Committee may be obliged to recognize the belligerency of both sides in Spain, and ask for a declaration of neutrality from all Powers.—
Havas.
Text read from the printed page and cleaned; old type leaves the occasional error.