751.65/390: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received May 19—2:25 p.m.]
111. Embassy’s 109, May 15, 2 p.m.60 Since the Duce’s Genoa speech61 there has been no resumption of the Franco-Italian negotiations. According to the French Embassy, Blondel62 is prepared to continue the discussions at any time that Ciano signifies he is ready to begin again and has received instructions from Paris to that end. The French Embassy admits a definite tension in Franco-Italian relations as a result of the speech but does not consider that negotiations have broken down and is awaiting some further indication of the Italian attitude. They attribute the delay and the reference to Spain in the Duce’s speech to the increasing anxiety on the part of the Italians concerning Spanish question which is the most important item of discussion.
It is apparent that Franco’s army is not making the hoped for progress and according to some reports there have been considerable losses suffered by the Nationalists among which have been a large number of Italian casualties but there is no indication that the Italian Government contemplates sending further reenforcements. The Italian [Page 196] press, however, is displaying considerable hostility toward France which is accused of continuing to send aid to Barcelona.