Not inconceivable given CORE's setup. To facilitate later game development Nationalist Spain begins the game as a present but inactive nation - kind of a nation in waiting. I rationalise it as an identifiable array of factions and interests in the process of coalescing to form a revolutionary movement. The smear campaign can then be seen as a UK propaganda weapon designed to stall that movement in it's tracks (though it won't).It´s Feb 1936 and UK tries to launch a smear campaign against NatSpain