Serious Complications Are Feared in London: French Warships to Return Fire London, Jan, 20 Arousing fears of further coniplications In the Spanish situation ort was received here yesterday from Valencia announcing that loyal-{st warships had captured an Talien merchant vessel carrying cargo of ale bombs and other war, materials destined for Spanish Nationalists "Phe report, if confirmed, will' doubt render the present delibera~ tons' of the Non-intervention "Sub-Committee still more dificult, London observers declare. They. add {he incident will hardly be brough! Dofore the. Non-Intervention Com= mittee og that body did not examine the Palos incident.
is feared here that similarly to Germany's action, Tlaly may. resort to reprisals and seize loyalist merchant men unless the Talien freighter fud her cargo are released.—Havas.
Valencis, Jan. 20, Roporis that an Mahan, merchant vessel was captured by loyalist ships and conducted to republican port were denied here to-day by the
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