GRAY
 
      LONDON
 
      Dated April 15, 1938
 
      Received 4:22 p.m.
 
      
 
 
Secretary of State
 
      Washington
 
      
 
 
319, April 15, 5 p.m.
 
      STRICTLY FOR THE SECRETARY AND THE UNDERSECRETARY.
 
      
 
 
Following personal and confidential letter dated April 14 
      Just received from Lord Halifax.
 
      
 
 
"You will remember that we spoke together the other day 
      on this subject of the conversations now proceeding between my 
      Government and the Italian Government with a view to the settlement 
      of all matters outstanding between them. I am glad to say that 
      these conversations are now reaching their final stage and I 
      have every reason to believe that an agreement will be signed 
      by Lord Perth our Ambassador in Rome and the Italian Minister 
      for Foreign Affairs within the next day or two.
 
      
 
 
As you know we have through our Embassy in Washington been 
      trying to keep the President in touch with the developments of 
      these conversations and I think perhaps it might be useful if 
      I were to attempt to give you some account of the contents of 
      the agreement which we hope shortly