File No. 763.72/1715

The Ambassador in Italy (Page) to the Secretary of State

[Telegram]

255. Negotiations mentioned continue but few think can have successful issue as Italy would hardly bind itself for even best Austria can offer. Austria reported to have vainly enlarged her offer conditional on Italy’s making permanent alliance. Vague rumor that [Page 31] Italy has negotiated a large loan in England. Best judgment is that Italy will defer moving till last minute but must extend her frontier to defensible line and also control Adriatic.

Nelson Page