HENDAYE, France (At the Spanish Frontier), May 20 (AP). Spanish Insurgent forces pushed their lines forward today at three strategic points on their front from Teruel about seventy miles eastward to the sea.
Insurgent Navarrese forces stretched their sector south of Escriche, on the Teruel front, after almost a week of rain-impeded fighting, in which they stormed ten lines of government trenches, one by one.
Insurgent dispatches also reported the capture of Villafranca del Cid, a key city on the highway from Teruel to Albocacer, leading south toward Valencia and the coast. Commanders of the Insurgent drive said they pushed on past Villafranca and reached the outskirts of Benasal, ten miles to the southeast, after crossing the Teruel-Albocacer highway. Positions dominating both sides of the highway were reported captured. Government defenders were said to be fleeing toward the southeast.
Insurgent dispatches said the town of Villafranca appeared deserted, most of its former population of 4,000 having fled. Villafranca, a textile center, recently had been an important government arsenal with many munition depots.
General Garcia Valinos corps, preceded by a fleet of tanks, entered the city despite the handicap of snow, the Insurgents said.
On the spur road north of the highway between Albocacer and Iglesuela del Cid, the third Insurgent conquest was said to have been occupation of Castellfort. Insurgents said their troops spread to positions just above the highway to the sea.
Escriche, ten miles northeast of Teruel, was unimportant in itself, but it marked the end of a deadlock in the mountains above Teruel and flattened out the ragged Insurgent front facing southward toward Valencia. The constant pounding of artillery and the bombing and strafing of planes forced the government militiamen to retreat from their last trench, Insurgents said. The advance put the Insurgents in position to resume pivoting their whole front around Teruel and drive south as fast as mud and freezing weather allowed.
The government was reported hastening construction of new fortifications along the coastal line between Alcala de Chivert and Castellon de la Plana to hold the Insurgents within their narrow seaboard strip and protect Valencia from attack from the north.
Nevertheless, in the last ten days a Castilian army corps under General Jose Varela, cooperating with forces commanded by Generals Miguel Aranda, Garcia Valino, Escamez and Camilo Alonzo conquered nearly all of a large pocket in Lower Aragon extending below Aliaga and Castellote down to Mora de Rubielos. With their occupation early yesterday of Vallafranca del Cid and Castellfort, they now hold almost a straight line between Teruel and Alcala de Chivert, passing through Escriche, El Castellar, Valdelinares and Mosqueruela.
The important cross-road junction of Albocacer is now surrounded.
Spanish Government officials convoying the shipment explained that it was in payment for orders for material placed in America by the Loyalists. It was not specified whether any part of these purchases concerned war material.
The original plan called for overland transport to Havre but in order to avoid accidents the trucks were routed to Port Vendres from where the bullion will be shipped to the United States.
I’m glad that things have gotten so much better in Mexico!!
AFAIK the silver and gold never arrived to the States. It was kept in France and after the war mostly returned to Spain.
The rest of the Spanish reserves, which dated from the times of the American colonies, was transported to the Soviet Union to pay for military equipment.
Franco had to pay German and Italian equipment sending tungsten, used in hardening steel, from the Spanish mines during most World War II.