Spain. Situation In: Note by Director of Military Intelligence

Economic Situation. Spain has not yet recovered from the effects of the Civil War and her internal conditions are extremely bad. Both economic and military resources are at a very low ebb and she could not stand the strain of war for more than a very short period without large-scale Axis support. Unemployment and shortage of food might result in internal disorders. Army. The Army at present is still in the process of reorganisation. There is a considerable number of men in the country who are partially trained and have had recent experience of war, but it is believed that the equipment available in Spain is insufficient for this number of men.