Extract from a confidential report from Michael MacWhite to Joseph P. Walshe (Dublin)
(Confidential)

Diplomats in Rome are at a loss to explain the decision of the Axis powers to enter into a formal military pact. The term alliance has been purposely eschewed. On the Italian side it is denied that this step means anything more than elaborating on paper a condition that has for some time existed in a looser form. The public are given to understand that it means nothing new. If such is the case, it seems strange that there should be so much propaganda made out of it by the totalitarian States. It would seem, however, to favour Germany more than Italy as it opens the way to an accentuation of German influence in this country.

The Italian press described the Pact as non-offensive, but points out at the same time that it will have a powerful influence for peace, as though through it the Axis powers will be able to supplant democratic hegemony in Europe with their own. It is not easy to reconcile these statements with one another, nevertheless, one may reasonably conclude that the pact was meant in some way to offset the so-called encirclement policy of Britain.

[matter omitted]