-19-                            
 
 
did not escape the notice of her satellites.
 
 
Third, without wishing to assert which was cause and which effect,
another development connecting England with the above-mentioned Belgian
move is to be noted.  According to reliable information* there is now
being considered the formation of a "neutral bloc" to include England,
Belgium, Holland, and possibly the Scandinavian countries, which would
not undertake 
a priori
 to attack Germany on the issue of the maintenance of collective
security in the East.  The distribution of profit and loss between
France and Germany is therefore evident.  
 
 
Fourth, a result of the Franco-Soviet Pact was the rapprochement
between France's new ally Russia and her old satellite Czechoslovakia,
which developed into a sort of military alliance much to the disgust of
Berlin, and one of the first thoughts occurring to the German
Government was, of course, that the flying time between any one of the
probable Soviet 
airports to be constructed in Czechoslovakia, and Berlin, was entirely
too short for comfort.
 
 
Germany's recent unilateral termination of the internatiomal control of
German navigable streams** is a step which clearly brings home to the
Czechoslovaks their important dependence on Germany as the only
 
 
 
* The British Embassy, Berlin.
** Embassy telegram No. 335 of November 16, 1936.