Memorandum by the Under Secretary of State (Phillips)

During his call this afternoon the Italian Ambassador referred to the situation in Egypt, which he regarded as serious, and as indicating the intense pressure which the British Government were exercising upon Italy. He reminded me that Egypt was not a member of the League and yet in spite of this fact the Government of Egypt had adopted sanctions against Italy and had done so because of the pressure of the British on the Egyptian Government. He added that Egypt had no foundation juridically for this action, which was of importance to other countries who exercise extraterritorial rights in the country. The Ambassador stressed the point that the British influence on Egypt in this case was significant and exceedingly important from the Italian viewpoint.

William Phillips