852.00/4014: Telegram

The Ambassador in Italy (Phillips) to the Acting Secretary of State

511. I have been informed in strictest confidence that the British and French Governments having become seriously alarmed over the Spanish situation have addressed a joint communication to the German, Italian, Soviet and Portuguese Governments urging them to take definite steps to put a stop to the shipment of arms and ammunitions to Spain. In the same communication the two Governments suggested mediation between the opposing forces. My informant continued that these proposals had been discussed with Ciano who had evidently not received them favorably and had raised a question as to how it would be possible to mediate or arbitrate in the present situation since the division of Spain between the Franco and Valencia forces could scarcely constitute a solution.

Phillips