741.65/692: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received January 16—9:05 a.m.]
17. An I. D. communiqué was issued late last night summarizing the results of the Mussolini–Chamberlain conversations.5 After underlining “the general cordiality” of the conversations the communiqué pointed out that with regard to Spain the Duce had repeated that the last Italian legionnaires would be withdrawn when the “red” volunteers were withdrawn and when Franco was granted belligerent rights but that if there should be any large scale intervention by govermnents friendly to Negrin Italy would resume its freedom of action.6
With regard to Italo-French relations the Duce stated that the question of Spain had so profoundly separated the two countries that it would only be possible to review the situation when the Spanish war was finished. In the meanwhile there could be no question of arbitration, mediation or three or four power conferences.
The communiqué continued that other questions were examined but not in detail among which were the “so-called Hebrew refugees” and the possibility—in any case a remote one—of the limitation of armaments. A firm conviction to maintain the peace of Europe was expressed by both the Italians and British.