Messersmith, G.S., Vienna. To William Phillips, Washington.

Talked with Foreign Minister [Egon Berger-Waldenegg] morning after his return from holiday in Florence; Minister saw Italian Secretary for Foreign Affairs [Fulvio] Suvich who reported little likelihood of German-Italian alliance; only half-way measures taken to suppress Fascist activities in France; Austro-Czech trade treaty expected to be signed in near future; [Milan] Hodza coming to Vienna Mar. 8 for final talks on treaty; Chancellor and Foreign Minister planning trip to Budapest to convince Hungarians treaty will work to their advantage; Hodza's visit to Belgrade not altogether successful; Yugoslavia torn by internal dissension and fear of restoration in Austria, and attracted by German promises of slices of Austrian and Hungarian Territory; press attach?? of Yugoslav Legation talked with correspondent of Manchester Guardian; told him Hodza's visit to Belgrade had better effect than newspapers indicated; obviously under instructions from Belgrade, press attach?? reported Yugoslavia interested in cooperation and opposed to Anschluss for Austria, but would like more assurance that Hapsburg restoration is not contemplated; Poland and Hungary will stay on fence as long as possible; situation in France better under [Albert] Sarraut government; British position, though fixed, not altogether clear;[Anthony] Eden's last speech a disappointment; inconceivable that man like [Charles Stewart, Marquess of] Londonderry should visit Germany and allow himself to be flattered and gulled into believing anything; both Catholics and Protestants in Germany still resisting Party influence; believes financial and economic factors will bring about regime's downfall; Mr. and Mrs. [Robert Woods] Bliss touring Europe; Mrs. Bliss became ill in Prague with bronchial pneumonia and in bed at [Joshua] Butler Wright's; Bliss went on to Budapest and came to Vienna for few days, but returned to Prague when informed his wife no better