"How much importance Your Excellency attaches to Wilson's peace mediation I cannot judge from here. Apart from that it is my duty to state clearly that I consider rupture with the United States inevitable if immediate action be taken on the lines of the memorandum."
At the time of sending the telegram I received, in the following telegram, the reply of the Foreign Office to Mr. Wilson's last proposals, which had been communicated to me through Colonel House:
Cipher Telegram No. 149
"Berlin, 7th January, 1917.
"In reply to Telegram No. 192 of 29th December.
"For your personal information.
"American intervention for definite peace negotiations is entirely undesirable to us owing to public opinion here. Also at the present moment we must avoid anything that might deepen the impression among our enemies that our peace offer is in any way the result of our finding ourselves in a desperate position. That is not the case. We are convinced that economically and from a military point of view, we can bring the war to victorious conclusion. The question of stating our conditions, therefore, Your Excellency will handle dilatorily. On the other hand, I authorize you to state now our readiness to cooperate in that part of the programme in which the President is particularly interesting himself, and which seems to be identical with the so-called 'Second Convention' outlined by Colonel House here. In this we include arbitration machinery, peace league, and examination of the question of disarmament and of the freedom of the seas. We are, therefore, in principle, prepared for those guarantees which could be settled in detail in a general conference after a conference of the belligerents has brought about a preliminary peace. To prove our bona fides in this direction, we are also ready in principle to open immediate negotiations with the United States.
"Your Excellency will be so good as to inform the President of this, and request him to work out the programme for the conference to secure world peace, and to communicate it to us as soon as possible.
"Please also emphasize to Colonel House and President Wilson that our actual peace conditions are very moderate, and, in contrast to those of the Entente, are kept within thoroughly reasonable limits; this is also particularly the case with regard to Belgium, which we do not wish to annex. Moreover, we desire regulation of commercial and traffic communications after the war without any idea of a boycott, a demand which we think will be understood at once by all sane people. On the other hand, the question of Alsace and Lorraine we cannot consent to discuss.
"I should like to know how Your Excellency thinks that pressure could be brought to bear by President Wilson to incline the Entente to peace negotiations. In the light of our experience during the two years of war, it seems to us that a prohibition of the export of war material and foodstuffs, which would be the step most likely to bring the Entente into line and would also be the best for us, is unfortunately little likely to be realized. Only an effective pressure in this direction could relieve us on our side of the urgent necessity of resorting again to unrestricted submarine warfare. Should Your Excellency have proposals to make as to how the unrestricted submarine warfare can be conducted without causing a rupture with America, I request you to report, immediately by telegram.