852.00/8253: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received July 13—3:13 p.m.]
174. Embassy’s 165, July 5, 11 a.m. In a conversation which I had with Perth this morning I found him somewhat discouraged in regard to his recent talks with Ciano. He explained that the Italians had been insisting that the agreement to put the British plan into effect constituted a “settlement” of the Spanish problem but that the British Government could not accept this interpretation since it was Chamberlain’s view that the accomplishment of a substantial withdrawal of volunteers would be necessary. The Italians had, however, not even yet been informed of this view but merely that acceptance of the British plan could not be considered a “settlement” sufficient to bring the Anglo-Italian agreements into operation. In his last communication to Ciano, Perth had stated that his Government was nevertheless very anxious to put them into effect at the earliest possible moment and hoped that the Italian Government on its part would propose some other way of getting around the difficulty.
Although when the agreements were concluded both the British and Italians were convinced that within 3 months the Franco armies would have achieved victory, Perth did not now foresee any rapid solution to the military problem. He admitted that certain younger elements in the Fascist Party were becoming impatient and he believed had counselled Mussolini to discard the agreements. Perth felt, however, that there was no immediate danger that Mussolini would act on this advice.