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OCR
Ze " ulack markets or free markets, the Spanish peseta has shown remarkable strength in its relation to the dollar. Last year, you could have in Tangiers from 54 to 56 pesetas for the dollar. This year, the average value of the peseta is 46 to the dollar, with the official rate of exchange at 39. If the present trend continues through the summer, so Bankers argue, it is-mest unlikely that the free rate and the official rate of the peseta will become identical, which might easily open the way to a great liberalisation of the currency policy of the Bank of Spain. Tis liberalisation is already clearly shown in the easing of import restrictions by the Bank of Spain. With a favourable balance, Spain is now able to import more goods than last year, and uses these possibilities not only for re-equipping its industry, but also in the field of transport. Every observer travelling in Spain today, and having known the country before, will be struck by the fact of the rising number of lorries on the Spanish roads, as well as by the fact that "buses are now among the most modern in Europe, and compare well with the "bus services in America. ‘The new Spanish State-owmed factory for the building of lorries and "buses - the Pegaso factory - is beginning to turn out gome rather modern and good equipment. This optimistic outlook, and the hope of better things to come - which is quite general - has gravely depressed the opposition forces against the régime: forgotten are the strikes of last year. ‘the underground movement themselves have, even in their strongest spots, lost considerable strength. A case in point will show this. Between May 27th and June lst a huge Eucharistic Congress was held in Barcelona, at which: Catholics from everywhere in the world foregathered. Directives had been issued by Moscow that this should be used for a show of strength on the part of the Communist underground in the big coastal city. At the same time, the non-Communist former loyalist groups had equally invited their atherents to try to make some
