[matter omitted]

With regard to the international situation there seems to be some increase in pessimism here, and less hope of a peaceful solution. It is being whispered with regard to Lord Halifax's talks with Hitler that the latter's aims proved to be so outlandish in regard to expansion, etc. that consideration by the other Powers is hardly to be thought of. No details are of course given, but those who always opposed concessions to Germany on the ground that the German people could never be satisfied, and that there was therefore no use in endeavouring to satisfy them, continue to argue that the sole way in which German aims can be damped down is to push on with the present dangerous armaments policy and to hope for the best from America.