(Received August 25 at 12.30 p.m.)
NEWS has reached me that official circles in Berlin consider that, by the pact of August 23, Germany and Russia have agreed to settle between themselves, not only the matter of Poland, but all questions concerning Eastern and South-Eastern Europe, and this to the exclusion of all other Powers.
From rumours circulating, it would seem that it is expected here that the first consequence of the German-Russian Pact will be the partition of Poland.
According to a statement attributed to State Secretary Lammers, Berlin and Moscow have decided to establish a common frontier on the Vistula. Russia would receive free port facilities at Danzig.
According to other rumours, Poland is to be reduced to the role of a buffer State; Lithuania would play the same part and would recover Wilna.
The provinces of Bohemia and Moravia would receive a limited independence and would act, so to speak, as a bridge between the Slav and Germanic worlds.
The Reich and Soviet Russia would also revise by mutual agreement the frontiers of the Baltic States and of Rumania.
I pass on this information with reserve, while pointing out that it probably corresponds with certain cherished hopes on the German side. In this respect, the greatest importance is attributed by political circles in Berlin to Article 3, which provides for a permanent consultation between the two Governments.
On the other hand, they seem to expect Poland to capitulate, and to attach great importance to Germany's not appearing to be the aggressor.
Coulondre.
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