By late 1937 Franco clearly had more tanks, aeroplanes and possibly troops than the Republic. There was division on the best policy for the Republic to follow:
o Negrín, the PM, favoured holding on as long as possible in the expectation of a general European war breaking out and changing the balance of power.
o Prieto, Defence Minister and army commander Rojo, favoured a more adventurous policy and with intelligence of a fresh attack on Madrid, decided on another diversionary attack. In December, in bitterly cold weather, they launched an offensive on the town of Tervel, which they captured by early January. The tactic worked in that Franco, against advice, did indeed divert forces and launched a massive counter-attack to retake the town. After massive bombardment Tervel was recaptured in late Feb. This marked a decisive turn in the war in Franco’s favour.
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