Hendaye, July 2.
Nationalists today made the first appreciable gains in ten days of intense fighting on the Mediterranean coast when troops under Gen. Valino [drove the Republicans deep into the Sierra Espadan mountains which are Meanwhile Nationalist planes repeatedly bombed Sagunto, Valencia and nearby villages, seriously interfering with troop movements and fortification work.
It was estimated that the Nationalists suffered 30,000 casualties in the past two months drive on Castellon de la Plana and Sagunto. Republicans were said to have borne the last important natural defence 40,000 casualties.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.