3. MILITARY IMPLICATIONS OF A FEDERATION OF BALKAN STATES. REAR ADMIRAL PARRY said that there appeared to be considerable political activity towards the formation of a federation of Balkan States. He considered that such a federation would increase the military potential of the Balkan States and therefore of Russia, and he suggested that this possibility should be examined by the Joint Intelligence Staff. In discussion it was pointed out that, so far as the satellite armed forces were concerned, there was already, in effect, a federation, since they were all closely controlled from Moscow.