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Show FRANCO HOLDS AGE-1N-PARLEY LONDON, Oct. 1 (ill-Italy and Germany today held an ace which Informed sources ssld may enable them t gain another diplomatic victory In the Spanish civil war nonintervention non-intervention crisis. Observers said Premier Benito Mussolini of Italy and Chancellor Adolf Hltlsr of Germany ran agree te th Anglo-French plan for withdrawal with-drawal of forlgn volunteers from Spanish armies and then let Insurgent Insur-gent Generalissimo Francisco Franco Fran-co scrap th plan by refusing to call ff his foreign fighters. Thus, they said. Germany and Italy were la a position which might permit them to prolong discussion ever the problem and evade blame In th event that nonintervention machinery eoilapsea. The nonintervention noninter-vention subcommittee is to meet Tuesday In London. British Cabinet Mreta Prime Minister Neville Chamberlain Chamber-lain presided at a cabinet meeting called primarily to consider prospective pros-pective parliamentary legislation. A committee of expert! meanwhile took up proposals to reinforce the neutrality committee's control of Spain's Frsnrh and Portuguess borders bor-ders and to abolish all forma ef aea control except observation by neutral neu-tral agents. It was pointed out that although France orally haa agreed to a withdrawal with-drawal of foreign soldiers, he haa dona so with a reservation. He has stipulated "equal withdrawal" of foreigner from both insurgent and central government fore, as proposed pro-posed Saturday by Italy. five to On Basal Asked British diplomatic quarters, however, how-ever, indicated Great Britain will ask for withdrawal of flv men from th Insurgent aid to every man called out of government ranks. This ratio waa worked out, It waa atatad en tha British belief that loo.ooo foreigners are fighting with Insurgents Insur-gents and only 30,000 for th central government Informed sources Indicated that if France refuse to permit withdrawal with-drawal of foreign volunteers, Britain Brit-ain and Franc will resume "full liberty ef action" and sell arms to th Spanish government But unless un-less Britain and Franca abandon their policy ef "judicious leaving aions." resumption of liberty of action would take time, which, Weather permitting. Franco might try to us for decisive military campaign. rraaee Fear Hinted j Bom quarter! Indicated Franco would welcome a ohanca to gst his Italian troops out of Spain in the fear that if they remain they would else th rewards of victory. Th asms quartan said, howsvsr, Meat It waa doubtful that Franco would be able t atand out against Mussolini and Hitler If they decide he can make their lot easier against Franc and Brits in la th nonintervention noninter-vention committee. When delegates return tomorrow they ere likely to center on two point: Anglo-French insistence that a substantial number of foreign volunteer vol-unteer be withdrawn before con-si con-si deration ef belligerent rights for Franco, and Insistsnc on withdrawal with-drawal ef volunteers In a number proportional to those serving en each side. Whether Iran ting belligerent right or withdrawing volunteers eotnea first broks up committee sessions In August and waa revived gain Saturday. Italy to Cooperate A high Italian official In Rome expressed Italy's readiness te cooperate co-operate In- effort to recall foreign volunteer from Spain. In London and Pans, Informed persons said Britain and Franc were ready to (rant belligerent right to both factions fac-tions la th Spanish conflict These two developments led to predictions that definite progress would b goad toward a eettlement. Dlplomatte sources said, however, that it la a mistake to conclude th situation si th cam as it waa before be-fore the committee reconvened. In th . Interim, Franco' troops marched triumphantly Into Banian-da.- and even men In the British foretga office no longer talk about whether Franca will win the war, but when. |