Cablegram unnumbered LONDON, 7 July 1938, 7.17 p.m.
We have interviewed the Foreign Secretary  reference your
telegram regarding Anglo-Italian relations.  Foreign Secretary
appreciates your views but informs us that the Government is
completely bound by the Prime Minister's  undertaking to the
House of Commons that the Agreement will not come into effect
until settlement in Spain.  In his opinion the Prime Minister
could not either honourably or successfully escape this
undertaking. At the same time he feels that with patience
Mussolini can be prevented from taking any unfortunate step.
Reference Sudeten information is that progress not at all
unsatisfactory and that atmosphere in Berlin much easier.
[ANL : PAGE 742]