765.68/282: Telegram

The Minister in Greece (MacVeagh) to the Secretary of State

210. The Director General of the Foreign Office has assured me that rumors retailed to me by American correspondents last night and this morning and which may have reached the United States to the effect that formal demands have been made on the Greek Government, that Corfu has been occupied, and that the British have seized Crete are false. He stated that the troop movements in Albania and the charges against Greece in the Italian press which are again denied today through the Athens news agency continue to be alarming but on the basis of information from the Greek Minister in Berlin “and other capitals” he spoke more confidently than heretofore of the exertion of German influence to insure the preservation of peace. In this connection he spoke with satisfaction of a Berlin “Transocean” despatch featured in all the Greek papers today which recites with evident approval the determination of the Greek Government to maintain its neutrality so long as the integrity and independence of the country are not threatened.

The Director General added interesting comment that intimations have come from the German Government that it would be [apparent omission] for Greece not to take any such military measures as might be construed in Rome as provocative. He admitted that this advice has its ambiguous side and may be intended to facilitate Italian plans but he said that it was necessarily being followed so far as appears safe. The Greek Government has announced no troop movements whatever but reliable observers have recently reported the departure [Page 538] from here of some small units by sea in the direction of Preveza and today four more special categories of recruits have been called up for a month’s special training.

The view that Germany will restrain Italy from attacking Greece is not supported by the attitude of the German Legation here which remains officially noncommittal but privately seems to contemplate letting things take their course. A number of German correspondents arrived in Athens yesterday apparently to cover expected developments.

MacVeagh