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EXHIBIT "C1=2 Excerpt from the book, "Thy and Hov I left Deferse ‘tinistry in the Intrigue of Russia in Spain," by Indalicito Prieto, former iAnister of Deferse for the Spanish Republic cause. "It is true that I have had certain incidents with the lussians. Certain Russian technicians proposed to re in Valeccia, that a service of Ifilitar, Investilations should be created. This was the Spanish counterpart of the NKVD. I confess that I opposed the project. But because of insistent pressure, I created the S.i.k. Iwas especially concerned with choosing a chief, until I gave it to an intimate friend of mine, who had just cone fron Trance, ihere he was with his farily. In entrusting hin with the task, I zave hin these instructions: ‘fou ara soing to forr the S.1.H., carefully, with elenents of all groups of the Poplar Front, Your only charzes ill be there two: Do not permit the nev organization to be converted into an instruxent of the Commnists art do not persit Russian technicians to gain control. Listcn to the advice of these technicians and folloy their orientations, ~rhich can be very useful to you, but control must alvays be in your hands and in that of the Government, 2nd of no one else.! "I shoved little tact in the selection of that comrade. A Revublican naracd Sayajues cate in fact to be the chief of $.I.h. Regional chiafs of the 3.I.hi. were designeted and they provosed to ne a certain Gustavo Dura: for the liadrid zone. It was not concealed from me that the person provosed was a Cormunist (Buran). I Imew this, but in spite of that, he was appointed by te. In the decree creating the 5.I.U. of Aucust 1937 <a decree which T myself drew: up, because I cid not wish to follow in a slevish manner the mreject which wac handed me == there is an article by virtue of which the apoointzent of all agents of the 5.1.1. rests exclusive .dth the inister of National Defense. This was a Guarantee .shich temporarily I wish to establish. No one could be en acent of the S.I.U. who was not in possession of the mMenorandum book which bore duplicate the sisnature of the minister. Duran having been apnointed chief of the demarcation of the arny of the center, of his om accord and :ithout pover to do so, apnointed the agents whe were under his orders, which to the nunber of some hundreds, were Corunists and only four or five were Socialists. I faced an intoleraztle situation, wherefore al-= lezing, and with reason, that I Jacked commanders in the arny. I ordered thet all military chiefs who were not in particular posi- tions in the army should return to their former positions and thus Wajor Duran had to return to his military function. Because of Duran's leaving the S.I.L. I received a visit from a Russian technician, of these servicec, who said to me: '‘PUSSIAN AQIT. I have come,to saeak to you about the dismissal of Duran. What hanpened? IIDTO. Uothing sveeial, I lacked conuanders in the army and ordered Duran to return to it. IRUSSLA-AGLIET. io. You discharzed him because he appointed Conrunists as a ents in ‘zdrid. 1pIcTO. That is also sufficient reason, because Duran absolutely lacked authority to wake appointments. TUSSTAL ACLIT. hy did he not have the power to appoint agents? 'PxIcTO. Decause by virtue of the decree creatin; the S.I.li. that power is reserved exclusively to the ‘‘inister.! "I read the decree and before the evidence of my statenant gy visitor allezed: *RUSSIAY! AGE'T. Duran could nake temporary appointnents. ‘P2IcTO. jeither actual nor temporary. Here in Spain, moreover, the temporary is converted into the definitive.