This is Jaime Sabartes, the glamorous, dreamy 'poet' of the 1901 portrait (here), now a man in late middle age. Picasso's friend ever since their early days together in Barcelona and Paris, Sabartes had responded to an appeal from the artist in 1935, when the seperation from Olga and other complications had brought Picasso close to despair. Having left Spain to help Picasso through his difficulties, Sabartes stayed on as his secretary and companion for the rest of his life.
Picasso painted and drew his friend in may guises. Here he is a ruffed 16th-century Spanish gentleman - perhaps a sly dig at his function as chief courtier to King Pablo, for Picasso certainly had a capricious and cruel side to his nature.
The painting was done at Royan, a town on the Atlantic coast where Picasso and his entourage established themselves a few days after the outbreak of war.