Text Version

Our own reports on the European situation have not been as 
      pessimistic as those mentioned to His Majesty's Ambassador by 
      the Under Secretary of State on February Both. We now think that 
      it will be best to communicate in the utmost confidence the following 
      summary of our information.
2.While we are not disposed to underrate the latent danger 
      in the present international situation, our latest information 
      inclines us to think that Herr Hitler has for the time being 
      abandoned the idea of precipitating an immediate crisis such 
      as he seemed to be contemplating at the beginning of the year.
3.Our information suggests that this is largely because the 
      German Government has since January been impressed by the firm 
      attitude of the French Government towards the Italian claims, 
      by the progress of British rearmament and by the Prime Minister's 
      statement of February 6th on Anglo-French relations and not least 
      by the recent attitude of the United States Government. It may 
      also be due in part to temporary deterioration in German railway 
4.According to reliable reports no preliminary signs of impending 
      mobilisation are Apparent 
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