To sum up, the Austrian Government may point out that the assurance given to the Washington Cabinet in the case of the Ancona, and renewed in the case of the Persia, is neither withdrawn nor qualified by its statements of February 10, 1916, and January 31, 1917. Within the limits of this assurance the Austrian Government will, together with its Allies, continue its endeavours to secure to the peoples of the world a share in the blessings of peace. If in the pursuit of this aim—which it may take for granted has the full sympathy of the Washington Cabinet itself—it should find itself compelled to impose restrictions on neutral traffic by sea in certain areas, it will not need so much to point to the behaviour of its opponents in this respect, which appears by no means an example to be followed, but rather to the fact that Austria-Hungary, through the persistence and hatred of its enemies, who are determined upon its destruction, is brought to a state of self-defence in so desperate extreme as is unsurpassed in the history of the world. The Austrian Government is encouraged by the knowledge that the struggle now being carried on by Austria-Hungary tends not only toward the preservation of its own vital interests, but also towards the realisation of the idea of equal rights for all states; and in this last and hardest phase of the war, which unfortunately calls for sacrifices on the part of friends as well, it regards it as of supreme importance to confirm in word and deed the fact that it is guided equally by the laws of humanity and by the dictates of respect for the dignity and interests of neutral peoples.
3
Speech by Dr. Helfferich, Secretary of State, on the Submarine Warfare
The Norddeutsche Allgemeine Zeitung of May 1, 1917, gives the following speech by Dr. Helfferich, Secretary of State, on the economic effects of the submarine warfare delivered in the principal committee of the Reichstag on April 28. The speech is here given verbatim, with the exception of portions containing confidential statements:
"In the sitting of yesterday a member rightly pointed out that the technical and economic results of the submarine warfare have been estimated with caution. In technical respects the caution observed in estimating the results is plain; the sinkings have, during the first month, exceeded by nearly a quarter, in the second by nearly half, the estimated 600,000 tons, and for the present month also we may fairly cherish the best expectations. The technical success guarantees the economic success with almost mathematical exactitude. True, the economic results cannot be so easily expressed numerically and set down in a few big figures as the technical result in the amount of tonnage sunk. The economic effects of the submarine warfare are expressed in many different spheres covering a wide area, where the enemy seeks to render visibility still more difficult by resorting, so to speak, to statistical smoke-screens.
"The English statistics to-day are most interesting, one might almost say, in what they wisely refrain from mentioning. The Secretary of State for the Navy pointed out yesterday how rapidly the pride of the British public had faded. The English are now suppressing our reports on the successes of our submarines and our statements as to submarine losses; they dare not make public the amount of tonnage sunk, but mystify the public with shipping statistics which have given rise to general annoyance in the English Press itself. The English Government lets its people go on calmly trusting to the myth that instead of six U-boats sunk there are a hundred at the bottom of the sea. It conceals from the world also the true course of the entries and departures of tonnage in British ports since the commencement of unrestricted submarine warfare. And more than all, the English Government has since February suppressed most strictly all figures tending to throw light on the position of the grain market. In the case of the coal exports, the country of destination is not published. The monthly trade report, which is usually issued with admirable promptness by the tenth of the next month or thereabouts, was for February delayed and incomplete; and for March it has not yet appeared at all. It is to be regretted that this sudden withdrawal of information makes it more difficult for us to estimate the effect of our submarine operations, but there is a gratifying side to the question after all. It is not to be supposed that England should suddenly become reticent in order to avoid revealing its strength.
"For the rest, what can be seen is still sufficient to give us an idea.
"I will commence with the tonnage. You are aware that in the first two months of the unrestricted submarine warfare more than 1,600,000 tons were sunk, of which probably considerably over one million tons sailed under the British flag.
"The estimates as to the quantity of English tonnage at present available are somewhat divergent; in any case, whether we take the higher or the lower figures, a loss of more than a million tons in two months is a thing that England cannot endure for long. And to replace it, even approximately, by new building, is out of the question. In the year 1914 England's newly-built ships gave a tonnage increment of 1,600,000; in 1915 it was 650,000 tons, in 1916 only 580,000, despite all efforts. And the normal loss of the British merchant fleet in peace time amounts to between 700,000 and 800,000 tons. It is hopeless to think of maintaining equilibrium by urging on the building of new vessels.
"The attempts which are made to enlist the neutral tonnage in British service by a system of rewards and punishments may here and there, to the ultimate disadvantage of the neutrals themselves, have met with some success, but even so, the neutrals must consider the need for preserving a merchant fleet themselves for peace time, so that there is a narrow limit to what can be attained in this manner. Even in January of this year about 30 per cent. of the shipping entries into British ports were under foreign flags. I have heard estimates brought up to 80 per cent. in order to terrify the neutrals; if but 50 per cent. of this be correct it means a decrease in British shipping traffic of roughly one-sixth. Counting tonnage sunk and tonnage frightened off, the arrivals at British ports have been reduced, at a low estimate, by one-fourth, and probably by as much as one-third, as against January. In January arrivals amounted to 2.2 million net tons. I may supplement the incomplete English statistics by the information that in March the arrivals were only 1.5 to 1.6 million tons net, and leave it to Mr. Carson to refute this. The 1.5 to 1.6 million tons represent, compared with the average entries in peace time, amounting to 4.2 millions, not quite 40 per cent. This low rate will be further progressively reduced. Lloyd George at the beginning of the war reckoned on the last milliard. Those days are now past. Then he based his plans on munitions. England has here, with the aid of America, achieved extraordinary results. But the Somme and Arras showed that, even with those enormous resources, England was not able to beat us. Now, in his greeting to the American Allies, Lloyd George cries out: 'Ships, ships, and yet more ships.' And this time he is on the right tack; it is on ships that the fate of the British world-empire will depend.