Messersmith, G.S., Vienna. R[obert] Walton Moore, Washington.

Calls Moore's attention to despatch No. 957 of Nov. 14 which covers Vienna Conference and 956 of same date covering Austro-German Commercial negotiations; Italian position weaker, resulting in slight slipping of Austrian position toward Berlin, though Italy reassures Austrian government of continued Italian support; Austria in key position, which Mussolini understands, but not thoroughly understood in England and France; still uncertainty concerning [Galeazzo] Ciano's visit to Germany, though Ciano assured French Minister in Vienna that Italy had no binding agreement with Germany; friend who had recent conversations in London and Paris with Baron [Robert Gilbert] Vansittart and [L??on] Blum reports Vansittart said English-French relations better and England interested in maintenance of Franco-Soviet pact; said Germans complacent about English neutrality; Blum believes his Government will hold, but some reorganization may be necessary; he said France would hold to Franco-Soviet arrangement; lacks adequate information on [Josef] Beck's visit to London, but Polish position with England and France seems strengthened; friend gathered impression in London many believe Germany might strike any time against Czechoslovakia or Russia, or both; Ward Price of the Rothemere papers, foreign mouthpiece of both Mussolini and Hitler, recently in Vienna, told friend Mussolini concerned that Hitler might take arbitrary action which would involve all Europe; doesn't place much dependence on Ward Price, but he does have access to Hitler and Mussolini; German army against action now; [Jules] Sauerwein in Vienna during Conference; in his opinion, England, France, and Italy fear German action will not be long delayed; appears now that Italy wants to strengthen Rome, Paris, London line; food situation so bad in Berlin, diplomats making their own arrangements to get butter, eggs, and meat from outside; only people living normally are diplomats, higher and secondary Party officials, and farmers; Nazis now in complete control of Danzig; resistance of Madrid Government bringing Spanish situation to fore again