That is a very interesting idea. Assuming these negotiations go ahead do you think it is more likely we will see a neutral Italy or Italy swinging over to the Allied side?
(Although to be honest I'm still not sure Britain would be entirely happy with leaving at least half of the Mediterranean in a neutral state, not when they are in a position to totally defeat the Italians in Libya and Ethiopia.)
Well the victory on Africa from a TTL PoW are not a given and frankly all the resources deployed here can be used for more important front (Europe and Battle of Britain) and keep on the Pacific, basically a Italy who after some months of a phoney war equivalent return to neutral state is a godsend for Britain in this moment so Churchill will not spit on it.