740.0011 European War 1939/6935: Telegram

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

336. The Director of the Foreign Office told me this morning the Greek Government feels definitely encouraged regarding the general Balkan situation and believes that a number of influences may be working together to localize the Greco-Italian conflict at least for some time to come. Among these influences he specified Germany’s interest in not extending the war to regions economically important to herself and ostensibly a Secretary of the German Legation who is credited with being the chief Nazi agent in Greece as saying that Germany will not attack this country so long as the British do not compel her to do so presumably by bringing over sufficiently important forces to threaten the constitution of an eastern front. In addition he spoke of the stiffening attitude of Yugoslavia and the recent Turkish military precautions both of which together with possible confidential expressions of Russian interest he thinks may be having an effect on Bulgarian policy.

As regards the military situation which is very briefly dealt with in staff communiqués he said that the Greek Army cannot keep pace with the newspaper reports but that it is nevertheless advancing satisfactorily. He said the Italian Army has been badly demoralized by the recent fighting, declared that the port of Durazzo has been practically destroyed from the air and was very optimistic as to the future if international complications can be avoided.

MacVeagh