"As I have more than once explained in my reports, no solution of the Lusitania question, agreeable to the Americans, could be found, so long as we were not prepared to admit the responsibility of the Imperial Government for the disaster, or its obligation to make reparation, and so long as our views on the principles of submarine warfare differed from those held by the American Government.
"By dint of drawing out the negotiations as long as possible, and by the employment of all my persuasive powers, I succeeded in tiding over the moment of acute tension. Then came the incident of the Arabic. My laboriously constructed diplomatic edifice came tumbling about my ears, and things looked blacker than ever. The American Government regarded the Arabic incident most seriously, believing as they did that it was typical of the whole German policy vis-à-vis America. They argued that either the whole affair had been prearranged as a manifestation of our intention to have our own way in the matter of submarine warfare, or else it was a blunder which could be dealt with in the ordinary course of diplomacy. Negotiation became possible when your Excellency notified this Government that satisfaction would be given in the event of the submarine commander being proved to have acted contrary to his instructions. Further negotiations followed on this basis, and it was finally agreed that we should admit the exceptional nature of the Arabic case, without yielding our ground on the main points. Such agreement would have been impossible had President Wilson adhered to his previous position, but he wished to have done with the whole business, and could only do so by throwing dust in the eyes of the American public. He hoped by these means to get rid of the Lusitania incident unostentatiously, and told me, through one of his personal friends, 'to let it drift.' The idea at the back of his mind is that it shall be left to an international tribunal sitting after the war, to decide whether we shall pay compensation or not.
"The only really important question as regards the settlement of the Arabic case, is whether it is worth while for us to risk a rupture of relations with the United States, for the sake of this affair. I still persist in my opinion, that it would infallibly have led us into a new war."
(4) Cipher
"Washington, 1st November, 1915.
"Your Excellency's last wire on the matter of the submarine campaign raises two points of the highest importance.
"First, as to Wilson's policy of the 'freedom of the seas;' this has been the idea underlying all our recent negotiations over the submarine warfare. Our agreement with this policy has been constantly emphasized in all my conversations with leading men here; but it is of course necessary carefully to choose our moment for the public declaration of our agreement with Wilson's point of view, as people here naturally fear that if England believes us to be behind any agitation for the freedom of the seas she will resist it all the more firmly. I respectfully recommend, therefore, that we should leave Mr. Wilson to carry on his present controversy with England, for the present at all events, unaided. We shall lose nothing by so doing, and if an opportunity comes for our participation, we can make use of it.
"After this expression of opinion, let me pass on to the second point I have always clearly stated here, that we reserve to ourselves full liberty of decision, if England refuses to receive our advances. At present, now that the Arabic case has been recognized as exceptional, this 'freedom' is only being encroached upon from one direction as we have undertaken not to sink passenger ships without warning, etc. By this undertaking we must abide, unless we wish to go to war with the United States of America. Any future destruction of passenger ships with Americans on board, especially if such took place without warning, and with the approval of the Imperial Government, would inevitably cause a rupture."
The political sky in the United States was thus becoming more propitious day by day; but our enemies' exertions for the purpose of undermining the present friendly relations, redoubled in proportion. The German Embassy became the chief object of attack, owing to the fact being clearly realized by our foes, that so long as its influence in Washington political circles remained unimpaired, no rupture of diplomatic relations could be hoped for. Entente diplomacy left no stone unturned which could be of service against us; lies, robbery, personal defamation, gossip, were all used to discredit us.
The conduct of a British officer on duty in Washington affords a good example of the unscrupulous policy of our foes. According to the evidence of Dr. Fuehr, this gentleman, now holding a high position in London, attempted in the early months of 1916 to corrupt a messenger of our Press Bureau in New York, one Alfred Hoff, whose daily duty it was to take newspaper cuttings to Councillor Albert's office. Two of his people stopped this boy in the street and invited him to the British Consular offices; here he was received by the Captain himself, who showed him a bag filled with bank notes and promised him a liberal reward, if he would undertake to obtain some letters from Dr. Fuehr's desk. Hoff pretended to fall in with this suggestion, but at once informed his employer of the incident. The Captain then made a second effort to bribe Hoff by the promise of a money reward for every document from the Press Bureau, and also a ride in a motor for the letters which it was his duty to take from the Bureau to the German Embassy at Cedarhurst, during the coming summer. One of the British agents told Hoff that he would be well paid if he handed over the letters of Dr. Fuehr, which he often used to seal and frank, and also certain other documents of a specially confidential nature. Dr. Fuehr finally put an end to this unsavory episode, which had been fully investigated by private detectives, by publishing a detailed account of the whole affair in the Hearst papers. At the same time he brought the matter before the Public Prosecutor, who, however, was unwilling to interfere in the matter unless it should be further discussed in the Press. This limited comprehension of duty Dr. Fuehr could hardly be expected to agree with.