“‘A few days ago I had occasion to discuss with Grand Admiral v. Tirpitz and Admiral v. Holtzendorff the question of a resumption of the submarine campaign.

“‘I was then given confidential information as to the number of submarines at our disposal, and I am bound to say that even if due allowance is made for the activity of the mine-seeking auxiliaries I regard the number of large submarines as insufficient for the purposes of such a finally decisive measure.

“‘The first attempt at submarine warfare proved unsuccessful on account of the insufficiency of the means employed to carry it through; and it is my humble opinion that a second attempt should only be undertaken if its success were beyond the possibility of a doubt. If this cannot be guaranteed the consequences of such a measure appear to me to be out of all proportion to the risks attached to it.

“‘I therefore beg to respectfully suggest to Your Majesty that the work of the mine-laying auxiliaries should be carried on as hitherto, and should even be extended. I also consider that the submarines should be made use of to the fullest extent of their capacity, with the proviso, however, that their employment against passenger steamers should be subject to the restrictions recently laid down by Your Majesty.

“‘When the number of the big submarines shall be sufficient effectively to cut off the British food supply, I think the time will have arrived for us to employ this weapon against Great Britain without paying regard to the so-called neutrals.

“‘At present about two hundred ocean steamers or more enter British ports every day, and an equal number leave for foreign ports. If we sink a daily average of 30 or 40 we can, indeed, greatly inconvenience England, but we shall assuredly not be able to compel her to sue for peace.

“‘I humbly apologize to Your Majesty for thus stating my views on this matter; but I am of opinion that the extreme importance of the proposed steps will be a sufficient excuse for me.’”

In the early part of 1916 Ballin went on a second mission to Vienna, and afterwards he prepared a detailed report for the Chancellor dealing with the state of public feeling as he found it. This document presents a faithful picture of the precarious conditions in that capital which the German Government had constantly to reckon with, and may therefore be of interest even now. The following passages are extracts from it:

“If we desire to keep the Austrian fighting spirit unimpaired we must avoid at all hazards suggesting the possibility of an understanding with Italy. The Italian war is popular down to the lowest classes of the people, and the successful stand against Italy is a subject of pride and hope to all Austrians.

“Hence the circumstance that Prince Bülow has temporarily taken up his abode at Lucerne has roused a considerable amount of suspicion. Even the officials in the various ministerial departments fear that the Prince might intend to make unofficial advances to Italy when in Lucerne, and that these steps might be followed in Berlin by a movement in favour of a separate peace with Italy by which Austria would have to cede the Trentino. People were obviously pleased and relieved when I could explain to them that the Prince was greatly embarrassed on account of having lost his Villa Malta, and that the choice of a suitable residence during the winter had been very difficult. They were particularly gratified when I told them—what I had heard from the Prince’s own lips—that he had had no official mission, and that he had not been engaged upon any negotiations.