865.00/1747: Telegram

The Chargé in Italy (Reed) to the Secretary of State

432. Postponement of meeting of Fascist Grand Council scheduled for tonight, an action which I understand is almost unprecedented, is provoking a good deal of speculation concerning reason for Mussolini’s continued absence from Rome. One explanation which seems to be officially inspired is his need for quiet atmosphere in which to consider reply to be made to Franco-British invitation to consult on nonintervention in Spain. I learn, however, that Ciano stated to a press correspondent last Monday that a decision had already been reached regarding general terms of Italy’s reply which it was expected would be delivered tomorrow and which would contain suggestion that whole matter be referred to the London Non-intervention Committee. Consequently it seems improbable that this is the real reason for the Duce’s sojourn at Rocca delle Caminate.

A more likely explanation barring possible illness is that Mussolini is communing with himself in regard to the future of his venture in Spain. If it be true that in his recent conversations with Hitler the latter gave him no encouragement to believe that Germany would lend further active support to Italy’s policy and aims in the Mediterranean the Duce in view of apparent stiffening of Franco-British attitude is confronted with the necessity of making a very serious decision. He must determine not only whether Italy alone shall continue present assistance to Franco but also whether additional aid is to be furnished. In this connection I have been informed by a fairly reliable source that Teruzzi, commanding the Fascist forces serving in Franco’s army, returned to Italy recently and told the Duce that an additional army corps was needed immediately to ensure a Nationalist victory.

Reed