AS
THIS TELEGRAM MUST BE
CLOSELY PARAPHRASEDBE-             LONDON
FORE BEING COMMUNICATED
TO ANYONE. (BR)                         Dated October 26, 1940
 
                                   Rec'd 9:26 a.m.
Secretary of State,
     Washington.
 
          TRIPLE PRIORITY.
 
          3536, October 26, 2 pm
     
          Strictly Cofidential
 
     Following is extract from telegram recieved 
 
by the Foreign Office which informs me full tele-
 
gram was cabled to Washington for communication to
 
you through British Embassy.  (Begin Gray) "The
 
following comes from an absolutely sure source which
 
must on no condition be compromised.
 
     German peace terms for France:
     
     For Italy: Department of Alpes Maritimes, half Algeria and Tunis.
 
     For Spain: Morocco.
 
     For Japan: Indochina
 
     For Germany: Alsace-Lorraine plus an internationalized zone from Switzerland to the sea.  
 
Naval and air bases in north France for the duration of hostilities.
 
                                   French
 
REGRADED UNCLASSIFIED