"If such a deplorable situation should arise, the Imperial German Government can readily appreciate that the Government of the United States would be constrained to hold the Imperial German Government to a strict accountability for such acts of their naval authorities, and to take any steps it might be necessary to take to safeguard the American lives and property and to secure to American citizens the full enjoyment of their acknowledged rights on the high seas."

The Imperial Government reaffirmed its standpoint in a further Note, dated February 16th, the gist and conclusion of which was as under:

"If the American Government, by reason of that weight which it is able and entitled to cast into the balance which decides the fate of peoples, should succeed even now in removing those causes which make the present action of the German Government an imperious duty; if the American Government, in short, should succeed in inducing the Powers at war with Germany to abide by the terms of the Declaration of London, and to permit the free importation into Germany of foodstuffs and raw material, the Imperial Government would recognize in such action a service of inestimable value, tending to introduce a spirit of greater humanity into the conduct of the war, and would willingly draw its own conclusions from the resulting new situation."

This Note was effective, in that it induced the American Government to dispatch on February 22nd an identical Note to Great Britain and Germany, with the object of arriving at a modus vivendi in the matter. Their proposal was as follows: Submarines were not to be employed in any attack on merchant ships of whatever nationality, save in execution of the rights of detention or search; merchant ships, for their part, were not to make use of neutral flags, whether as a ruse de guerre or to avoid identification. Great Britain would give free passage to provisions and food supplies consigned to certain agents in Germany, to be named by the United States. These agents would receive all goods thus imported and dispatch them to specially licensed distributing firms, who were to be responsible that they were issued exclusively to the civilian population.

The above project was concurred in by the German Government in a Note of February 28th, which added that "The Imperial Government considered it right that other raw materials, essential to manufacture for peaceful purposes, and also fodder, should also be imported without interference."

The British Government, as was to be expected, rejected the American proposal on somewhat flimsy pretexts, for England's sea supremacy was at stake in this as in her previous wars. "Britannia rules the waves" was, and ever must be, the guiding principle of all her policy, while her world-Empire endures. On this vitally important question England could not be expected ever to yield an inch of her own free will.

Thus the American attempt at mediation died a natural death.

Our adoption of submarine warfare was to be regarded, according to our Note of February 16th, as a measure of reprisal in answer to the English blockade. From a tactical point of view, this contention was unfortunate, as it afforded America the opportunity of agreeing at once, and thus of conceding us a point which benefited us not at all, but merely gave the United States all the more right to renew its protests against the submarine war. It would have been wiser for us to have initiated the submarine campaign simply as a new weapon of war without reference to the English blockade; still better, to put it into operation without declaring a blockade of Great Britain and Ireland, which could never be really effective, and caused constant friction between ourselves and America. Our declaration that the territorial waters of Great Britain were to be regarded as a war area was a legal formality modelled on the earlier English proclamation of the barred zones, and at once antagonized public opinion in the United States. By adopting the point of view we did with regard to reprisals, we laid ourselves open to the charge of illegality, and added to the ill-feeling already excited by the submarine campaign. If the contention of certain naval authorities that the observance of the Declaration of London by our enemies would have brought us no important material advantage is correct, the issue of our Note of February 16th becomes even less comprehensible. Having admitted in this Note that the declaration of the barred zones was caused by the fact that all was not well with us, we could hardly expect England would fall in with the proposal made at our suggestion by Mr. Wilson, and thus allow us so easy a diplomatic triumph. The President, however, after his rebuff from England, was bound, in order to maintain his prestige, to bring all possible pressure to bear on us, in the hope of compensating by diplomatic success in Berlin for his failure in London. My subsequent attitude was laid down, but at the same time made more difficult, by this interchange of Notes; but, generally speaking, my personal action in the matter began with the Lusitania incident; previous to this the negotiations had been entirely in the hands of Berlin.

The Washington Government then for the present assumed a waiting attitude, until such time as loss of American lives through our submarine activities should compel its intervention. With regard to damage to property, the standpoint was consistently maintained that claims for compensation for financial loss must be fully met. Every day might see a serious conflict, and this possibility was a source of constant anxiety to us Germans in the United States. The American Government, we thought, still underestimated the dangers of the situation, and failed to take any measures of precaution. In the middle of April I held a meeting in New York, with the representatives of the other German administrative departments, and in view of the great responsibility incumbent on us, we resolved on the motion of Dr. Dernburg to issue a warning to the Press in the form usually adopted for shipping notices. As a rule, these shipping notices were published by the Consulate as a matter of routine. Dr. Dernburg having, however, been unable to come to an agreement with the New York Consulate on the matter, I took upon myself to issue the advertisement as from the German Ambassador. It ran as follows:

"Travellers intending to embark for an Atlantic voyage are reminded that a state of war exists between Germany and her Allies and Great Britain and her Allies; that the zone of war includes the waters adjacent to the British Isles; that, in accordance with the formal notice given by the Imperial German Government, vessels flying the flag of Great Britain or any of her Allies are liable to destruction in those waters; and that travellers sailing in the war zone in ships of Great Britain or her Allies do so at their own risk."