The Ambassador in Italy to the Foreign Ministry 
 The Ambassador in Italy to the Foreign Ministry Telegram 
 Source: Documents on German Foreign Policy vol. VI, p.80. No. 253 of November 19. 
 ROME, November 19, 1936 - 8:40 p.m. Pol. IV 4561, [Plo. III 4993], [Pol. VIII 1532] Received November 19 - 11:45 p.m. 
 Yesterday, immediately after his return, Ciano asked me to call on him this morning. He told me first that yesterday's Fascist Grand Council had taken note of German-Italian collaboration with unanimous and very warm approval and had expressed complete sympathy for the German representation and the Third Reich. He then wished, he said, in the spirit of close liaison that had been agreed upon, to give me the minutes of the Three Power Meeting in Vienna …to read, even though he could not hand them over to me. The minutes contain eight points, the contents of which will follow by cipher letter. Ciano welcomed the German-Japanese understanding, of which, he said, Italy keenly approved. An Italian-Japanese agreement for the reciprocal establishment of consulates in Ethiopia and Manchukuo with executors by the King [sic] of Manchuria and the Emperor of Ethiopia was already under way. An understanding with Japan was of decisive importance in order to paralyse Soviet Russia vis-a-vis Europe. Britain seemed to have lost her head as the result of this news, since this combination would naturally greatly strengthen the position of Germany and Italy. Hence the incredible tone of the British press, and especially of The Times . Nevertheless attempts at an Anglo-Italian understanding were still being made, but with cool reserve on Italy's part. Gandi was satisfied with the atmosphere of all conversation with Eden but would go back with instructions to suggest merely a quite generally worded agreement to the effect that Britain and Italy promised to take no action against each other in the Mediterranean and to come to a peaceful understanding in the event of disputes. 
 
 Ciano then told me in the strictest confidence that the Yugoslav Minister, who had just returned, had announced, on Stojadino[vic]'s behalf, that Yugoslavia was now prepared to shape a more realistic understanding with Italy for this purpose to dispatch specialist delegates in the near future to discuss political , military, and economic questions; he had willingly accepted this offer. He would welcome it if the German side were to continue to exercise their previous and gratefully acknowledged influence in Belgrade in the direction of an understanding. As regards Spain, the Italian Government, he said, were determined, if the necessity arose - and this seemed to be the case now - to send troops as well, namely, four battalions of Blackshirts, each of a thousand men. In addition, the number of submarines would probably be further increased. Finally I mentioned the impending economic negotiations about general economic relations, as well as colonies and the Danube area, and emphasised their great importance. Ciano agreed and said that he had empowered Secretary of State Bastianini to take over a kind of supreme direction in order to ensure that political considerations were not neglected because of technical difficulties. 
 HASSELL