Following for your confidential information: Churchill's statement greatly heightened tension when it was tending to quieten down.¹ While we do not believe economic sanctions will be taken openly, measures approximating to sanctions may be possibility in the guise of a security measure. Our feeling is however that fear British administration might be hit harder than us will act as deterrent to anything like complete cutting off of essential supplies.

Striking support for Government's attitude voiced on Wednesday in Dáil.² Summary follows. Home front remains calm and united.

There is some tendency in British and American quarters here to deplore hornet's nest stirred up and to blame American mishandling in early stage and tone of Churchill's statement.

Your public statement and handling of situation fully approved. All continue on lines of my telegram 71.³