When Colonel House returned to America he told me that the time had not yet come for the mediation of the United States. He had, however, had the opportunity to state his views in London, Paris and Berlin, and had met with the greatest opposition in Paris, because France had suffered so seriously in the war that she had little more to lose by prolonging it.
In Berlin, on the other hand, he had found a disposition to agree to mediation by Mr. Wilson when a favorable opportunity occurred.
In accordance with the wish of the President I had discussed the peace question exclusively with Colonel House since his second visit to Europe. This made it possible for the conversations to be kept strictly confidential. I could call on Colonel House at his private residence in New York at any time without attracting attention, whereas the State Department and the White House were always besieged by journalists as I have already mentioned. As a rule, I took the night train to New York and called on Colonel House in the morning, before the Press were aware that I had left Washington.
On the 8th March, according to my instructions, I handed to the American Government a further Memorandum, which set out in concise terms the German standpoint.
After recapitulating the various phases of the negotiations which are already known to the reader, it defined the existing situation with regard to the war at sea as follows:
England was making it impossible for the submarines to carry on their campaign against commerce in accordance with the provisions of international law by arming practically all merchantmen, and ordering the use of their guns for offence. Photographs of the English orders had been sent to the neutral Governments, with the Memorandum of the 8th February, 1916. These orders are directly contrary to the declarations of the English Ambassador in Washington on the 25th August, 1914. The Imperial German Government had hoped that these facts would prompt the neutral Governments to carry out the disarmament of merchant vessels on the lines of the proposals for disarmament made by the United States Government on 23rd January, 1916. Actually, however, the arming of these ships with guns provided by our enemies has been energetically pursued.
Advantage was taken by England and her Allies of the American Government's decision not to keep her citizens off enemy merchant ships to arm merchantmen for attack. This makes it easy for merchantmen to destroy the submarines, and, in case of the failure of their attack, to count themselves secure owing to the presence on board of American citizens.
The order as to the use of arms was supplemented by instructions given to the masters of the merchant vessels to fly false colors and to ram the submarines. The news that prize-money was paid to successful captains of merchant ships and honors conferred upon them increased the effectiveness of these orders. The Allies have associated themselves with these English measures.
Germany now finds herself faced with the following facts:
(a) That for a year a blockade contrary to international law has kept neutral commerce away from German ports and made export from Germany impossible.