148 Mr J. A. Lyons, Prime Minister, to Mr N. Chamberlain, U.K. Prime Minister
Cablegram unnumbered 21 March 1938,
I need hardly tell you that we have been following the course of events with the greatest of attention and have carefully reviewed recent developments during Cabinet Meetings  over the last few days. My Government in the belief that an understanding with Italy will be the most valuable contribution to general appeasement at the present time and in the best interests of the Empire, hopes that no effort will be spared to come to terms with Italy. In this respect, the outline of the resumption of conversations in Circular telegram B. 66  appears most hopeful. We are greatly appreciative of your efforts to prevent any further deterioration in the situation, and of your handling of an extremely difficult situation and we hope your efforts to obtain general agreement for the principle of friendly collaboration in the rectification of grievances instead of the methods recently employed, will be successful.