Messersmith, G.S., [Washington]. To Max Horn, Brussels., 1938 February 02

Thanks Horn for information on Austria; would be happy to see trade agreement with Austria but thinks it advisable to wait and see outcome of negotiations with Czechoslovakia; Czechs expect U.S. to make all the concessions; favorable conclusion to Czech negotiations would open way for trade agreements with other Danubian countries; much talk about German putsch in Austria; believes that only the army has prevented the move, but recent developments in Army not reassuring; President's statement about holding companies was exaggerated in the press; hopes situation can be clarified so that needed development in utility field might be possible.