Your 46.¹ Position now regarded as quite satisfactory. Fears of German invasion no longer seriously entertained. Inform Woermann and thank him for communication. Continue to emphasise determination to remain neutral, taking the line that we regard our neutrality not as bargaining factor but as essential expression of our national independence.

Current reports in American Press alleging Anglo-Irish defence agreement and inciting Britain to show Oran spirit in dealings with us are part of campaign referred to in my 61.² Recent reinforcement of British troops in Six Counties is regarded here as due to British fear of German invasion of Ireland. British attack now considered unlikely but will be strongly resisted if made.

My 70.³ Thank Woermann for action in Smith case.