relations with the United States. I therefore contented myself with keeping in touch with Colonel House so that I should not be taken by surprise by any volte-face on the part of the American Government. As soon as a new crisis arises Mr. Wilson will, as usual, be in a fearful hurry and bring us to the brink of war. Whether such a crisis will be precipitated by the Sussex incident, and whether the President in that case will shrink from war at the last moment, it is difficult to foretell, as this question-like all others at the present moment-will be viewed exclusively from the standpoint of the approaching presidential election.

"Except for the surprises that are usual over here, things are at present quite calm. This is due, in the first place, to the desire for peace shown by the population, who are not anxious to be disturbed in their congenial occupation of money-making, and secondly, to the development of the Mexican question. This latter question stands in the forefront of public interest, and it seems to be increasingly probable that the punitive expedition against Villa will lead to a full-dress intervention. A few days ago it was reported that Villa was defeated, then wounded, and finally even a prisoner. All this good news proved later to be false and now Villa is said to have escaped south and won over fresh supporters. So long as the Mexican question holds the stage here we are, I believe, safe from an act of aggression on the part of the American Government.

"On the other hand it looks as though Mr. Wilson were looking for a fresh way out of the impasse into which his attitude on the question of the submarine campaign has led him. As I have already had the honor to cable, Colonel House holds out the prospect of an early move towards peace by the President. The view is entertained here, and strengthened by the impressions gathered from

Colonel House, that gradually the stress of circumstances will force all the neutral Powers into the war. If this happens there will be no further prospect of the conclusion of peace, as there will be no one available to set the ball rolling. It is therefore essential that the foundations of peace should be laid before the world conflagration spreads any further and finally destroys the prosperity of every nation. This view may sound like pure theory, but it gains substance from the fact that it can very well be made to harmonize with Mr. Wilson's election campaign. In his capacity of founder of peace in Europe, and peace-maker-i.e., indirectly conqueror-of Mexico, it would be difficult, if not impossible, to vanquish Mr. Wilson in the election. Mr. Theodore Roosevelt would then shout himself hoarse to no purpose and Mr. Charles Hughes, the strongest Republican candidate, would perhaps not even go so far as nomination if his position seemed hopeless.

In that report I announced for the first time that Mr. Wilson had so far changed his policy as now to put peace mediation in the foreground and to give the question of the 'Freedom of the Seas' second place. I shall return later to this political development.

When news reached Washington which left no doubt that the Sussex had been torpedoed by a German submarine, I immediately cabled to Berlin for instructions in order to be in a position to give an official disavowal of the act. It required nothing further to convince me that it was now a question of bend or break. I had no means of knowing whether the supporters of the submarine campaign or the partisans of an understanding with the United States would win the day. In the former case war was inevitable. To provide for the second alternative I recommended in my cablegram that there should be no question of an official exchange of Notes, because I

was anxious that our withdrawal should not be accompanied by a humiliation. If our Government were prepared to give way I regarded as the most appropriate modus procedenti the immediate issue of instructions to me, empowering me to offer the American Government satisfaction and compensation for this fresh incident. There was no hope of purchasing immunity from a break with any less concession than a pledge to carry on the submarine campaign for the future in accordance with the principles laid down by international law for cruiser warfare. I recommended, however, a provisional cessation of the submarine war on the basis of an oral agreement with the American Government. If this proposal had been acted on, the American Government would have been obliged to follow suit and there would have been no sharp exchange of Notes, which still further prejudiced the position on both sides. If, after such a pause in the submarine war and the establishment of a really clear diplomatic situation, Mr. Wilson failed us and made no positive progress either with regard to his programme for the 'Freedom of the Seas' or the conclusion of peace, we should have held quite a different position from which -if we really thought it desirable-to reopen unrestricted submarine warfare. We had always made the mistake of dealing in half-hearted concessions. In my opinion it was essential for us to strive for a complete understanding with America if we were not prepared to carry on the submarine campaign without regard to consequences.

No attention was paid to my suggestion in Berlin at the time. Admiral von Tirpitz had just resigned and the decision had been taken against the continuance of unrestricted submarine warfare. I do not know why the dispatch of an official Note was preferred to the oral negotiations I had suggested, but I think that the decid

ing factor was consideration for public opinion in Germany.

A few days later I cabled the following to Berlin:

TELEGRAM IN CIPHER

"Washington, 8th April, 1916. "House gave me a very gloomy view of the position with regard to the Sussex. At the White House the situation is regarded as hopeless because the view is held that, in spite of Tirpitz's resignation, the German Government, with the best will in the world, cannot curb the submarine campaign. It has hitherto been merely due to good luck that no American has lost his life and any moment might precipitate a crisis which would be bound to lead to a break. The American Government are convinced that the Sussex was torpedoed by a German submarine. A repetition of such mistakes would be bound to drive the United States of America into war with us, which Wilson would greatly regret, as he is anxiousas I have already reported-to lay the foundations of peace in a few months. If the United States were drawn into the war all hope of an early peace would be at an end.

"I request to be furnished with instructions on the basis of which I can pacify the Government here, which now has doubts of our bona fides."

After Mr. Gerard, apart from other questions concerning doubtful cases of torpedoing, had also submitted a similar inquiry to the Foreign Office on the subject of the Sussex incident, an official reply was handed to him on the 10th April which read in the following terms:

"A decision as to whether the Channel steamer Sussex was damaged by a German submarine or not is made extraordinarily difficult owing to the fact that no exact

information is known as to the place, time and accompanying circumstances of the sinking, and moreover a picture of this ship could not be obtained until the 6th April. Consequently the inquiry has had to be extended to all submarine enterprises which took place on the day in question, 24th March, in the Channel anywhere on the course between Folkestone and Dieppe.

"In this area on the 24th March, in the middle of the English Channel, a long, black vessel, flying no flags, with a gray funnel, small gray superstructure and two high masts was hit by a German submarine. The German captain was definitely convinced that she was a ship of war, and indeed a mine-layer of the newly-built English Arabic class. He was led to this conviction:

"1. By the flush deck of the ship.

"2. By the shape of the stern, which sloped outwards. "3. By the paintwork, which was that of a ship of war. "4. By the high speed of about eighteen knots which the ship developed.

"5. By the fact that the ship was not steering the course north of the light buoys between Dungeness and Beachy Head within which frequent observation had led the German submarines to keep a look out for merchant shipping, but was in mid-Channel, heading almost for Le Havre.

"Consequently, the submarine fired a torepdo at 3.55 p.m. Central European time, 11⁄2 knots southeast of the Bull Rock. The torpedo struck, and so heavy an explosion occurred that the whole of the ship forward of the bridge broke away. The unusually heavy explosion leaves no doubt that there were large stores of ammunition on board.

"The German captain has prepared a sketch of the ship he attacked, of which two copies are sent herewith. The two copies of pictures of the Sussex, also enclosed,