740.00/908: Telegram

The Ambassador in the United Kingdom ( Kennedy ) to the Secretary of State

500. When I saw the Prime Minister, aside from his great appreciation of the President’s message in the cause of world peace, he only had two items of information that might be of interest: (1) His still more or less unfailing belief that Mussolini intends to live up to his agreement to withdraw his troops from Spain. Most of his Cabinet do not believe this, but Chamberlain is still convinced. (2) He feels he can make a deal with Russia at any time now, but is delaying until [Page 140] he definitely gets the Balkan situation straightened away, because it has been intimated to him that to bring Russia in before the Balkan deals are all completed might cause trouble.

He has failed more in the past week than he has in the past year. He walks like an old man and yesterday talked like one.

He is a shade more hopeful of peace.