With regard to the present international situation, I have to report that following the events in Czechoslovakia, a state amounting to alarm prevails amongst the population here, and in Switzerland generally, which has hardly been assuaged by the terms of the statement on the situation which was broadcasted on Saturday, 16th March, by M. Etter¹, President of the Confederation. I attach a copy of the statement.

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The reactions of the democratic Powers are, I think, welcomed here, but they bring home to the people the diminishing possibility of a peaceful settlement, and therefore the increasing danger in which the small Western States would find themselves in the event of war.

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The question on everyone's lips here is what will be Germany's next move. Some think that the question of Memel will flare up. Others, that the ball will be passed to Mussolini. It is said that in Italy amongst the population the axe is not at all too popular and that the Italian people will not appreciate being dragged to the verge of war for gains which all seem to go to Germany. Italy therefore may be tempted to take a risk in order to have something to show for her membership of the axe. Signor Mussolini's speech on the 26th March is looked forward to as an indication of possible developments in the Mediterranean.

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