344 Lord Caldecote, U.K. Secretary of State for Dominion Affairs, to Commonwealth Government

Cablegram 188 LONDON, 6 June 1940, 11.45 a.m.

My telegram Commonwealth of Australia 138 [1] and New Zealand 130 of 4th May.

The appreciation as to intervention of Italy has now been reviewed as a result of recent developments and it is thought that the first two paragraphs might now be revised to read as follows:-

'As Italy's Navy is in better condition for war than Italy's Army or Air Force, it is probable that the Italian plan would be to use the Navy to dispute Allied control of sea communications, while using other arms for raids and diversions which may be on a major scale. The probable Italian action would be either a direct attack on the Allied interests and possessions in the Mediterranean and Red Sea, or invasion of the Dalmatian Coast or Corfu'.

In other respects the appreciation still holds good. [2]

1 Document 210.

2 This cablegram was also addressed to the New Zealand Govt as no.

171.

[FA: A3195, 1.3940]