740.00/485: Telegram

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

283. This morning’s announcement from Paris of the decision of the French Government to recognize the Italian Empire and to appoint an Ambassador to Rome has been given great prominence in this morning’s press. During my call upon Count Ciano this morning he expressed much satisfaction and said that the new French Ambassador would be François-Poncet.

Negotiations are now in progress between the British Embassy here and the Italian Foreign Office with a view to regularizing British-Italian relations. Count Ciano told me that as a unilateral act and not as a part of these negotiations the Italian Government would begin to withdraw from Spain on October 15 or 16 a large number of “Italian volunteers”—a force which would amount to more than one half of the total Italian forces in Spain. He added that General Franco had the situation so well in hand that Italian troops were no longer so necessary.

It would appear probable that Great Britain is preparing promptly to bring into effect the British-Italian agreements of April 16 last.

Ciano appeared optimistic over the decided turn for the better of European affairs in general. He also expressed satisfaction at the announcement this morning from Praha of the appointment of Chvalkovsky as Foreign Minister in the new Czechoslovak Cabinet. Chvalkovsky has represented his country in Rome for 6 years and previously as Minister in Berlin.

Phillips