A perusal of the cables and other communications received from the
Dominions Office in relation to the international situation has
left me with a definite impression that France has not been as
helpful as she might have been in clearing up matters outstanding
between Italy and herself I have been much struck by the idea that
Italy is in reality uneasy about her German alliance and realises
that the strengthening of Germany which that alliance brings about
may very well result in making Germany a Mediterranean power,
since it is difficult to believe that Hitler [1] would any more
scruple to break his word to Mussolini [2]-once his objective
seemed within reach-than he has scrupled to break it to other
people. For weeks past I have had the feeling that a generous
approach by France would have pleased Italy and would therefore
have weakened the axis and also the possibilities of Spanish
alliance. A settlement between France and Italy would also, I
imagine, have a big effect on Russia and both the Baltic and the
Balkan States.

I cannot escape the thought that, while at one stage in the face
of Italy's threatening demands Daladier's [3] attitude was the
only possible one, now that there has been a long silence on the
part of Italy, France might without danger of the loss of prestige
take the initiative towards negotiations.

Naturally I realise that these considerations have been in your
mind and that my underlining of them is probably quite
unnecessary. But from the point of view of Australia, the
continued deterioration of French/Italian relations may very well
lead to some arrangement with Spain, and to a most dangerous
Mediterranean position which would have its inevitable effect upon
the security of Singapore and therefore of Australia.

I know that you have the best possible information and would like
you to know that your wisdom and strength are much appreciated by
all the members of my Cabinet, but at the same time feel that you
will understand my giving all emphasis to the points I have
mentioned. [4]