§ Sir A. Southbyasked the Secretary of State for Foreign Affairs whether he has any further statement to make on the economic relations between the United Kingdom and Spain?
§ Mr. ButlerYes, Sir. An agreement was signed in Madrid on 7th April by the Spanish Minister for Foreign Affairs and His. Majesty's Ambassador at Madrid providing for the advance to the Spanish Government of £2,500,000 by His Majesty's Government to be expended in such manner as the two Governments may agree. This agreement is supplementary to the Loan Agreement concluded on 18th March, 1940, and the terms in regard to1730W the payment of interest on and the repayment of the capital of the loan are the same as in the earlier agreement. It is expected that the greater part of the loan will be used for the purchase of foodstuffs and raw materials of which Spain is in urgent need.