741.65/456: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received February 7—4:21 p.m.]
27. My No. 20, February 3.19 I learn today that the Duce received Lady Austen Chamberlain several days ago and assured her of his earnest wish for the resumption of the friendly relations with England which he desired to reestablish, also a testimonial to her husband. He told her that he was willing to have the British Government select the [Page 159] time and place for the conversation and asked her so to inform the British Ambassador.
In a conversation with Lord Perth20 today he expressed the belief that the Duce’s conversation with Lady Chamberlain represented a certain amount of progress and that there now remained only two obstacles which should be cleared up probably through the Italian Ambassador in London before the negotiations could take place.21 The more important of these obstacles concerned the Spanish situation since there was still uncertainty in both London and Paris whether the Duce would send further reenforcements on a large scale to aid Franco. At the present time it is known that the two opposing forces in Spain with the exception of the air forces in which Franco has superiority are appropriately [approximately?] equal. Neither side can make much progress without further foreign assistance. Should the Duce give satisfactory assurance that no more Italian troops will be sent, Perth considers the main obstacle to the conversations would be removed. However, any decision in this respect apparently has not yet been made.
The lesser of the two obstacles related to propaganda. Inasmuch as the Italians have almost as good a case against the British as British have against the Italians the Ambassador considers that it will not be difficult to cancel the mutual complaints.
Perth said further that while Eden was reported to have made some statement to the effect that recognition of the Empire had been demanded by the Italians as a condition precedent to the opening of negotiations Perth himself now felt that this was not wholly correct and that the question could form part of the general settlement.
It may be of significance in this connection to note that the Italian press for the past two days has reflected the change in tone which is alleged to have taken place in the British press regarding relations between Rome and London although it is said in some quarters that this improvement may have been caused by uncertainty in England as to the results of the new changes in Germany. See Embassy’s telegram 26, February 7, 6 p.m.22