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The Secretary of State for Dominion Affairs to the Governor-General of New Zealand

As a result of recent developments, the appreciation as to the intervention of Italy contained in my telegram of 4 May (No. 135), has now been reviewed and it is thought that the first two paragraphs might now be revised to read as follows:

As Italy's Navy is in better condition for war than Italy's Army or Air Force, the probable Italian plan would be to use the Navy to dispute Allied control of sea communications, while using other arms for raids and diversions which may be on a major scale. The probable Italian action would be either a direct attack on Allied interests and possessions in the Mediterranean and the Red Sea, or invasion of the Dalmatian coast or Corfu.

The appreciation still holds good in other respects.