25 JUNE 1937, Page 1

Bilbao and After The insurgent troops are at length in

possession of Bilbao, but in one respect at least their victory was not complete, as their encircling movement was unable to prevent the bulk of the Basque Army from escaping towards Santander. Since Sunday the pursuing'insurkent airily has made a rapid advance of twenty miles ; but so long as the Basque army remains in existence, is able to conduct a guerilla warfare, and is willing to undertake the defence of Santander and Gijon, the fall of Bilbao will not have decisive military effects on the main theatres of the war. But its diplo- matic effects, in increasing General Franco's prestige with his foreign allies, and in encouraging them to hope for a final victory, have shown themselves with extreme rapidity. Bilbao fell without any assistance of any value being given to the Basques by the Governments at Valencia or Barcelona. The offensives undertaken to divert troops from Bilbao failed of their object, and met with defeat, though a Govern- ment success has been claimed, once again, on the Huesca front north of Saragossa. The expected attack on Madrid is still impending.