(Prepared in accordance with Circular No. 121 of June 16, 
      1933, from the Consulate General, London, and Section VI-1, Note 
             19, of the Foreign Service Regulations.)       
 
                                                            
 
 
                                                            
                   POLITICAL OBSERVATIONS                   
                                                            
 
                                                            
 
 
       From: PHILIP HOLLAND, American Consul General.       
 
    Liverpool, England. Date of completion: February 28, 194
 
                                                            
 
 
            Data of mailing: February 28, 1942.             
 
                                                            
 
 
February has brought reverses wherever the British have engaged 
      in the conflict. Some of the people are astounded at their own 
      weaknesses; others have accepted the disasters as incidents to 
  be expected in the struggle; others are obviously indiffer
 
                                                            
 
 
Those who are astounded have hitherto believed the Empire 
      to be impregnably prepared for defense and regard their defeats 
     as calamitous and are bitter that they have bean misled
 
                                                            
 
 
Those who have accepted the disasters as incidents to be expected 
      had not troubled to inform themselves as to the true conditions. 
      Moreover, they expected, trusting in their leaders, to muddle 
      through and somehow win the last battle.