§ LORD RANKEILLOURasked His Majesty's Government whether their attention has been called to a speech by Senor Suner, the Spanish Minister of the Interior, on 16th June, in which he is reported to have said that the attempted economic encirclement of Spain by the democracies would be frustrated; and if they have any statement to make on the subject.
§ THE SECRETARY OF STATE FOR FOREIGN AFFAIRS (VISCOUNT HALIFAX)The attention of His Majesty's Government has been called to the speech in question. They have also noted the statement made by General Franco to the National Council of the Falange on758WA June 5 and the speech broadcast by him on May 20. I take this opportunity to state that His Majesty's Government have no desire or intention whatever of organising the economic encirclement of Spain or of taking any action injurious to the mutual interests of Spain and the United Kingdom.
Commercial relations between the two countries have a long history of friendly development behind them and His Majesty's Government have every desire to see the trade between the two countries once more assume its normal proportions. His Majesty's Government are accordingly anxious to reach a mutually satisfactory settlement with the Spanish Government of the various problems affecting trade between the two countries, including both the question of the steps necessary to enable future trade with Spain once more to assume its former level and that of outstanding debts. His Majesty's Government have already indicated their desire to enter into discussions for this purpose as soon as the Spanish Government are ready and willing to do so, and they hope this may be possible at an early date.