-2- today indicate grounds for hope that Mussolini might favorably consider making a gesture in terms of advancing the time-table of removal of volunteers from Spain as his contribution towards bringing the Anglo-Italian Agreement into operation. Such event would prove a step forward and might serve towards tranquilizing a number of sore spots which have developed in the Mediterranean area during the past few months and which have been eclipsed by the Czechoslovak situation. Moreover, another ray of hope is attributable to further confidential reports reaching here today that the British Govermment plans, in event of succeeding in bringing about the operation of the Anglo-Italian agreement, to initiate a move for a "Great Pow~s" conference. Furthermore, it is intended that while the first meeting might be limited to the major powers, the scope of the conference will subsequently be extended to include other powers. Meanwhile, there are still numerous issues requiring urgent consideration such as Spain, further minority problems in Czechoslovakia, Palestine, Germany' s demands in the colonial domain, et cetera. Moreover, statesmen in countries east of Berlin, meanwhile stand upon a pile of debris coneisting of scrapped alliances, bankrupt system of collective security, Eastern and Central European disillusionment in Western European moral and military support, shattered principles governing conduct of International dealings, and now face a transitional period. Moreover, they are faced, even as are the statesmen in London, with the question as to whether it would be better to "play ball" with Germany, or to build up their respective armed and diplomatic strengths against a potential increase in the scope of Hitler's appetite. I am personally inclined to feel Hitler's voracious appetite will have been omly whetted by his recent gains. Moreover, I am aware that official circles here feel there are as yet no tangible grounds for a belief that Hitler has altered his determination to continue driving eastward and southeastward. In this connection, one thing is becoming clear in my numerous conversations with Polish officials. That is |