Show I i Frano Okeh U. U S. S 0 Bases MADRID 1 July lolly 18 INS INS Re Re Reliable liable information indicated indicate d Wednesday that Generalissimo o Francisco Franco Franr Fran co en and Admiral t S. S Forrest P. P SherI Sherman Sher Sher- man U S. S Chief J I v tp 7 of oC Naval Operations Opera Opera- t i ion o n s h have a v c t l reached accord 5 1 on a proposed 0 agreement for for- I American us use of I Spanish air and i. i 1 naval na bases in event of war Gen Franco The agreement was said slid to lo have been reached on basic principles principles principles prin prin- and a cabinet reshuffle is expected to stem from it The up make-up of a new and liberal regime under Franco is expected to be announced shortly In Washington Secretary of State Acheson announced that negotiations are being carried on with Spain to determine what that country can contribute to western European defense lie lieI I said the thc U. U S. S S is proceeding alone as Great Britain and France are unable to lo find a common position in the discussions for reasons of which we are aware and under under- stand I In London the thc foreign n office said th that t Britain wo would fd view with disfavor any alliance bet between be he t tween veen Franco Spa Spain n and a member member mem memo ber bel of oC the North Atlantic Treaty Organization A spokesman said that such a pact would have a avery avery very bad propaganda effect |