Cipher Telegram No. 212
"(Answer to Telegram No. 149 of the 7th January.)
"Washington, January 16th, 1917.
"Your Excellency's authority in regard to Mr. House duly availed of. He told me Wilson considered this pronouncement of Imperial Government supremely valuable. As regards further developments of Wilson's efforts for peace, I can say nothing definite. This much only is certain, that at present moment President has no other thought than that of bringing about peace, and will endeavor to achieve this end with the utmost energy and all means in his power. A further pronouncement of Wilson's is expected almost immediately; it will probably take form of a communication to Congress. Apparently it will consist of an appeal to the American people to help him to enforce peace; in any case both he and House praise the Hearst Press article, which is written from that point of view. Whether means adopted will be to place an embargo on all exports is difficult to say. Maybe the threat of an embargo will be enough to force our enemies to a conference.
"From the above it is clear that we cannot afford to have any difficulties over the old U-boat question. As regards the question of armed merchant vessels, I hope to arrive at a modus vivendi. But we must be careful not to act hastily and carelessly, so as not to create conflict before President has taken further steps. Remarkable as this may sound to German ears, Wilson is regarded here very generally as pro-German. His Note was traced to our influence, and Gerard's speech strengthened this impression. This speech is in accordance with instructions which Mr. Gerard is receiving. Our present enemies have gone literally raving mad, and leave no stone unturned in order to put obstacles in Wilson's way. This explains the attacks against the President, as also the scurrilous attempt engineered by the Republicans to charge the Administration with Stock Exchange speculations. Without any justification, of course, my name also was mentioned in this regard. The German Embassy, as is well known, is held responsible for everything by our enemies in this country."
At the same time as the above telegram, I wrote the following report describing the prevailing political attitude in Washington:
Cipher Report
"Washington, 14th January, 1917.
"Ever since the Presidential election the political situation here has not changed. Apart from the question of ending the world-war, the public mind has not been constantly or earnestly concerned with any matter.
"Congress has dealt with the customary Budget proposals, and the fruitless negotiations about the Mexican question drag slowly on.