Varun

Kapadia
C AI D 17615577
IB EXTENDED ESSAY SYNOPSIS
HISTORY

TO WHAT EXTENT DID SOVIET INTELLIGENCE PLAY A ROLE IN CHANGING THE
ECONOMIC CONDITION OF SPAIN FROM 1936-1938?

Background

Spain had suffered from a plague of constant military coups and maladministration over decades. The
country. Between 1803 and 1936 almost twenty military coups had taken place. Political instability started
during the Carlist Wars from 1833 and 1876 where there were disputes for the succession of the Spanish
throne. These ancient wars debilitated the political condition in Spain over the years and encouraged a
platform where traditional catholicism would battle liberal thought. Traditional customs and values were
originally stimulated to change due to the rise of Marxism and Socialism in the late 19th century which
appealed to the agricultural population of Spain. The oligarchy on land, by the church and large estate
owners contributed to major rural unrest. The absence of control farmers had on their land led to the liberal
ideology of anti-clericalism to seep into the society of Spain like a fluid of hope. Rural and industrial unrest
led people to foster hostile feelings towards the Catholic Church and organised religion. Religious discontent
and political turmoil finally led to the War when the Spanish army in Morocco led by General Francisco
Franco, rose up against the democratically elected Republican government, presided over by Manuel
Azaa. It was fought from 17 July 1936 to 1 April 1939 between the Republicans, who were loyal to the
democratically elected Spanish Republic, and the Nationalists, a fascist rebel group led by General Francisco
Franco.
The War had an international element to it and the situation alarmed intellectuals from all over the world.
The right and the Catholics supported the Nationalists as a way to stop the expansion of Bolshevism. On the
left the war represented an inevitable battle to stop the spread of fascism. The Soviet Union, USA, Britain,
France, Italy, Germany and various foreign were involved in the war and many historians claim that without
the global intervention, the course determined of the war could have been different. Antiwar and pacifist
sentiment was growing in many countries, resulting in speculation that it could be the start of the Second
World War. In retrospect, the Spanish Civil War was not a dress rehearsal for the Second World War, but it
was a confirmation of the growing instability encircling Europe.

Investigation: Role of different countries

Even though Joseph Stalin had signed the Non Intervention Pact along with the other foreign powers,
the Union of Soviet Socialist Republics breached the League of Nations embargo by providing military
assistance to assist the Republicans in the Spanish Civil War. The USSR was known as the only
source of major weapons to the Republicans and unlike Hitler and Mussolini, who were open about
their supply and aid, Stalin chose to do this behind closed doors. The military supply of ammunition
and tanks were clearly an indication of what path the war was going to take but the Moscow Gold
incident, according to Spanish historians like Julian Casanova Ruiz, played a large part in determining
the economic condition of Spain after the war. The Republic paid for Soviet Armaments with official
Spanish Gold Reserves. The cost of the Soviet Union arms was more than the value of Spain's gold
reserves, the fourth-largest in the world, estimated to be around US $518 million at the 1936 prices
and 176 tonnes. The Real GDP of Spain before the war was approximated to be around 83,353 million
Euros and after the war it fell to around 63,781 million Euros. These statistics are according to the
2010 Euro prices and thereby historians conclude that when adjusted to modern and inflated prices
the 500$ million that the Soviets took in gold resulted in economic turmoil in Spain right after the
war and Spain suffered from depression.
However to analyse the actual effect of Russian Intelligence involved in the Moscow Gold incident it
is essential to consider other historical perspectives and evaluate the economic condition thereafter.


Franco after taking Madrid, 1939

Russian supplies Comparison of military aid


The Moscow Gold left Franco with a depleted Spanish reserve; however, foreign involvement from
the side of the Germans provided the Republicans with over $215 million according to 1936 prices.
This would compensate for some of the Moscow Gold money but Franco chose to spend this money
on more supplies of arms and ammunition, along with tanks and planes. This leads us to an
evaluation of what really is economic turmoil, and that can only be directly attributed to a loss of
work-force along with ruined infrastructure. The loss of infrastructure and the lack of a work force
was the economic turmoil that Spain faced after the war. A large part of the infrastructure damage
was caused by France. The Blum Government chose to aid the Republicans, fearing a Nazi like state
established in Spain. Utilising French Intelligence forces, the Blum Government covertly supplied
bomber aircraft which went on to cause a great deal of damage on Spanish soil, worsening the
economic condition of Spain. French Intelligence orchestrated the supply of Potez 54 bomber
aircrafts (nicknamed the 'Flying Coffin'), Dewoitine aircrafts and Loire 46 fighter aircrafts. The
French also sent pilots and engineers to the Republicans. Also, until 8 September 1936, aircraft could
freely pass from France into Spain if they were bought in other countries. Throughout the war,
German Intelligence found out that the French were engaging in the supply of ammunition and
supplies, providing an important historical perspective on who caused the infrastructural damage
resulting in economic turmoil.

Mexico also played an underrated yet active part in the Spanish Civil War. Mexico's most important
contributions to the Spanish Republic was its diplomatic help, as well as the sanctuary the nation
arranged for Republican refugees, including Spanish intellectuals and youth from Republican
families. Over 50,000 took refuge, primarily in Mexico City, accompanied by $300 million in various
treasures still owned by the Left. This reduced the Spanish workforce, resulting in lower productivity
as a by-product of damaged infrastructure, property and deaths in hundreds of thousands. Mexico
also ignored French and British Non-Intervention policies, furnishing $2,000,000 million in aid and
material assistance.

The atrocities committed, majorly by the Nationalists resulted in a loss of their own property and
workforce triggering furthur economic turmoil. Historian Antony Beevors history of the civil war
entails Francos white terror which resulted in 200,000 deaths. This furthur ruined the workforce
and caused unemployment after 1939. The view of historians, including Helen Graham, Paul
Preston, Antony Beevor, Gabriel Jackson, and Hugh Thomas is that the mass executions behind the
Nationalists lines were organized and approved by the Nationalists rebel authorities, while the
executions behind the Republican lines were the result of the breakdown of the Republican state and
anarchy. Both these historical perspectives of atrocities lead to an evaluation of the fact that it was
not just foreign powers who worsened the Spanish economy.

Conclusion

This synopsis highlights some key factors to weigh with Soviet involvement in the Spanish Civil War,
and how it affected the economic condition thereafter. A clear conclusion that can be made after in-
depth investigation and research is that Russian Intelligence to play a part but not to a very large
extent, in changing the economic condition of Spain. Other foreign involvement along with domestic
Nationalist and Republican feuds have contributed to great changes in the Spanish economy.