Letter

              J.I. de Lizaso 
Delegate of the Basque Government
14 Eccleston Square
London S.W.1
Tel Victoria 0926
28th January, 1939.
Dear Sir Walter Citrine,
I have received some fully-confirmed information from our Paris Delegation regarding present German activities in the Basque Country which, it has been suggested to me, have a particular significance to Great Britain at the present time.
The following is a summary of the salient points:
The Basque Arms Factory at Plasencia (Guipúzcoa) is being re-equipped with machinery supplied from Magdeburg, Neustadt, Germany; 300 tons of similar machinery from Demag, Duisburg, Germany, is being installed at the Altos Hornos de Vizcaya, one section of which is being equipped for the production of long-range guns.
Forty batteries of guns of the 6.5 c.m. type recently unloaded from German ships at Pasajes (Guipuzcoa), have not been sent to the warfront but are still being "tested" in the San Sebastian area, near the French frontier.
During December, 30,000 tons of German war material, including aeroplanes, was unloaded at Vigo, the larger part being concentrated at Vitoria, nowhere near the warfront, but about 100 kilometres from the French frontier.
At the "Constructora Naval" yards at Bilbao, merchant ships are being armed under German supervision.
Part of the Vigo harbour, which has the best