INTERNATIONAL SITUATION (MR HUGHES [1])
Cables from Secretary of State for Dominions, circular B206 and
also cablegram of 30 August circular B205 were both read to
Cabinet. [2] Further 7 points that Dr Benes should announce also
read to Cabinet. Decided that a reply as presented and approved be
forwarded to the Secretary of State for Dominion Affairs and that
a statement be made to the press by the Prime Minister, Mr Lyons.
1 Minister for External Affairs.
2 Circular cablegram B202 from the U.K. Dominions Secretary, dated
27 August 1938, received 28-29 August, not printed, stated that
Lord Runciman, the British mediator in the dispute between the
Czechoslovakian Government and the Sudeten Germans, had learnt
that the Czechoslovakian President, Dr Benes, had prepared a new
basis for negotiations. The seven points of this proposal (also
known as the 'Third Plan') included the division of Czechoslovakia
into a number of autonomous districts of which three would be
German; a loan for the three districts; constitutional reform and
a propaganda and press armistice. Talks between Czechoslovakia and
Sudeten Party leaders on 24 and 25 August on this basis had
proceeded favourably. Circular cablegrams B205, dated 30 August,
received 31 August, and B206, dated and received 1 September, not
printed, said that a meeting of U.K. Ministers on 30 August had
considered it to be of the utmost importance that Dr Benes's
proposals be made public as soon as possible. It had been
suggested to Lord Runciman that, if Dr Benes did not publish the
seven points, Lord Runciman should himself do so.
