In diplomatic circles here opinion is about evenly divided as to whether the conclusions to be drawn from Hitler's speech in the Reichstag this afternoon leant more towards the side of war or of peace. So far none of my colleagues have seen the text and only a few of them know German sufficiently well to be able to make an intelligent estimate of what was said. Poland was, however, pointed out as one of the unreasonable countries much like Czechoslovakia was last September though on that occasion Beneš, personally was the main subject of attack. It is believed the status of Danzig would already have been changed if Great Britain had not clarified her attitude in regard to Poland. The Polish Ambassador to whom I have just spoken, fears for the worst, although he thinks it possible no aggressive move may be made during the Summer months. The references to Ireland in Hitler's speech were the subject of much comment. One diplomat said 'He put his finger on Britain's only weak spot and then stuck it in Roosevelt's eye'.

During the visit of Goering to Rome a fortnight ago the Duce is said to have asked him to warn the Fuehrer against any aggressive steps for the time being, at least, and to inform him, at the same time, that he could not count on any support from Italy in case of an attack on Poland. Although there was a great fanfare of trumpets on his arrival, his departure passed almost unnoticed. Since then, it would appear that the axis is not so rigid as before. The attacks in the Italian press on France have ceased and while the efforts of the democracies in their policy of encirclement of the totalitarian States occupy much space the undertone is less aggressive. Perhaps the taking over of Albania by Italy forestalled a more important move on the part of Germany.

The French Ambassador called on the Italian Foreign Minister a couple of days ago to straighten out some trade tangle. In the course of the negotiations

M. Poncet² asked Count Ciano, bluntly, what French concessions would satisfy Italian national aspirations and the reply was - as told me by a person very close to the French Ambassador - 'A free port at Djibouti, participation in the Direction of the Suez Canal and a modification of the status of Italians in Tunisia'. These are concessions which France could make at any time without loss of prestige or dignity if it were not made to appear that they were wrenched from her under threat of war.

The military tension here of the past months has been eased considerably during the last couple of days. The reservists called to the colours have not been disbanded but officers are free to return to civil life as they prefer. They are no longer obliged to sleep in Barracks. This relief is particularly noticeable among the civil population. The war clouds that enveloped the horizon a couple of weeks ago seem to have evaporated so far as the Italian people are concerned.