741.65/437: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received December 23—3:43 p.m.]
531. My telegram No. 500, December 3, 6 p.m.3 My British colleague is pessimistic about present prospects of improving relations between Italy and Great Britain. He told me yesterday that early [Page 206] this month Eden had sent for Grandi and expressed the hope that Ciano would call in Lord Perth4 for the purpose of opening the long delayed conversations between the two Governments. Furthermore, Perth had received full instructions from Eden with regard to the proposals he would be authorized to present. However, Ciano had not sent for him and had made no mention to him of Eden’s request to Grandi. This is a source of keen disappointment to Perth. He reminded me that there was of course a divergence of views with regard to procedure in the event of such conversations. Italy demanded recognition of Ethiopian Empire as a preliminary. The British Government was willing to grant recognition but only as part of a general settlement and insisted as a preliminary condition that there be a cessation of hostile propaganda and among the Arabs in particular. It is evident he said that the Italian Government is trying to compel the British Government to recognize the empire by creating as many difficulties as possible for Great Britain. This he added is well understood in London and the British Government has no intention of acceding under pressure.