762.63/508: Telegram

The Minister in Yugoslavia ( Lane ) to the Secretary of State

28. Assistant Minister for Foreign Affairs stated to me this morning that German-Austrian situation was not officially discussed by Balkan Entente at Ankara it being felt that in absence of action, even of a platonic nature, on the part of Italy, France or Great Britain any statement from the Entente would be useless. The Yugoslav attitude he said still is that it would deplore further German aggression in Austria. He expressed the opinion that there is no probability of Schuschnigg’s encouraging Hapsburg restoration (this point of view is confirmed by the Austrian Minister).

The key to the peace of Europe according to Andric lies in the Ciano–Perth and Ribbentrop-Chamberlain conversations. In the event that these conversations accomplish nothing the general tension will be correspondingly increased.

Copies to Borne, Paris, Berlin, London, Vienna.