File No. 763.72/1326

The Ambassador in Austria-Hungary ( Penfield ) to the Secretary of State

[Telegram]

353. Since recent catastrophe to Austro-Hungarian forces in Servia, great indignation being openly expressed by all classes. Financial and commercial circles urging peace for Austria-Hungary. No word of dissatisfaction finds publicity in press which so controlled that no details of defeat are published. Reports come from Czech part of Bohemia and from Hungary that popularity of war has reached vanishing point. Opinion persists that Italy will enter strife in New Year. This I hear from various persons coming from Italy but officials here maintain Italy’s neutrality will continue.

Penfield