Burgos, Feb. 20.
'A. Nationalist communique, nouncing the termination of the talks between M. Berard, special French envoy to the Burgos Government, and General Jordana, the Nationalist military leader, states that the conversations were carried Atmosphere "of mutual " courtesy. "which permitted some of the problems outstanding between the two noighours to be solved in a satisfactory Either the White or Black fleets—the attackers and defenders—may use the British and French islands as betes on the theory that in actual warfare, this would be the procedure, The Navy thus far has refused to identify the hypothetic "enemy" the" current manoeuvres in which note than 140. warships, 400 planes ind 60,000 men are engaged. Inforrged quarters believed, however, that the Senemy" was a Fascist power or combination of Fascist powers. Pre-tent Spanish and African possessions of the major European Fascist states fre believed to be regarded as the main bases for the "attack" on the Western Hemisphere.
Decisive "Battle" Near Fleet Problem XX was believed to be nearing Ite climax today and a decisive "clash" between the two, Meets was expected before Mor The two Meets have been conversing: for a final bate all week and are expected to meet east of the island chain between the United States and the northern coast of South America.
Navy oflelals increasingly em: phasize that the manquvres are not Confined to the defence of the Panam Canal, as had been first believed, but iso Involve the defence of the entire eastern coastline of the United States tone. part of South America, Berard proceeded to France following the signature of an agreement between France and Nationalist Spain. The communique adds:~"The mission entrusted to him by the French Gov-fernment ig now terminated."
"The question of the return of the! old and silver belonging to the Bank Spain and hold in France is under Mood 0 be among the subjects cove din the three documents signed between General Jordana and M. Berard. Spanish ar treasures held in France will also be affected, The documents also dear with the! return of Spanish ships interned in French waters and. the question of repatriation of Spanish refuses numbering 40,000 from France.
Another matter covered by the documents Ig the resumption of poste telegraphic and. railway communica tions between France and Spain.
Senator Berard, who lett for Paris after completing his work here, saw) General Franco before his departure. Reuter.
British Statement Today:
London, Feb. 25, When, as is anticipated,' the Prime Minister, 'Mr. fe Chamberlain, unnounees in the House of Commons ton Monday' the decision to extend full "diplomatic recognition to Gen~ tral Franco's Government, he will probably indicate that certain yen tral wasurances based ona statement by General' Franco have been received as to the principles which will luuide the head of the Nationalist Government in administering justice the remaining Republican areas when these pass under his control.
Alreratt are understood to be more ctive in the current manguvres that ever before. Observers believe the fenders have "had. the advantage thus far because of the good weather wevailing inthe war games zone. The attacking force would be aided in their efforts to establish new bases If It had a protective fog or gloomy
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