At the time of the Sussex crisis a further awkward incident occurred which took us back to the days of conspiracies. In consequence of the Welland Canal case the American secret police came down upon Herr von Igel, the representative of the Military Attaché, in his New York office, for alleged complicity, arrested him by force and seized papers which were found on his table. I immediately laid a protest before the State Department, whereupon Herr von Igel was set at liberty and a long international controversy arose which had not come to an end when Herr von Igel returned with me to Germany. The American Law Department maintained that Herr von Igel was suspected of complicity in a legal offence, that he could not therefore plead extra-territoriality, and must stand his trial before an American Court. The State Department, it is true, had doubts as to whether an office in New York could be recognized as extraterritorial, but for the rest maintained a correct attitude and refused to agree to the opening of proceedings against Herr von Igel.

The seized documents were handed over to the State Department, where they probably still lie. The State Department declared to me their readiness to hand back the papers if I wished to declare them Embassy documents. I, however, thought that an attempt might be made later to use such a declaration against me as a trap and I rejected the offer to return the papers on these conditions, as they were of no further importance to us. If there was among them material which could be used against the former Attachés it might be assumed that the Law Department would long ago have had the documents copied.

The Igel affair had no definite political result, as the American Government dropped all controversies when they began to take up the question of mediation.

To return to the settlement of the Sussex incident it should be mentioned that our surrender on the submarine question was widely resented in Germany. Further, it caused a check in submarine construction. At least, Secretary of State von Capelle has declared before the Commission of the National Assembly that an extensive submarine construction programme had to be abandoned because it would have been too sharp a contrast with Germany's attitude after the settlement of the Sussex affair. As a matter of fact, submarine construction was never carried on with full vigor after 1916 as has been pointed out by Messrs. Struve, Gothein and Co. In the light of this the gravity of the decision in 1917 to resort to unrestricted submarine warfare is doubled. It will be seen clearly here how our divided policy on the one hand permanently crippled the submarine policy and on the other that of mediation.

To conclude the Sussex question, I will add one more telegram which I sent to the Foreign Office after Secretary of State Lansing had publicly mentioned an Anglo-American agreement—a remark which in Berlin was taken to mean that America had formed an alliance with England. It is well known that during the war such a statement has frequently been made.

Telegram in Cipher

"Washington, 21st May, 1916.

"I am working confidentially in co-operation with House for the settlement of such still unsettled questions as the Lusitania and the Igel cases, so as to clear the air completely. Feeling here now more favorable owing to the influence of the Irish executions. Wilson regards conflict with us as a thing of the past and desires to let things rest and soon to lay the foundations of peace. Lansing's speech as to Anglo-American agreement refers to the Bryan agreement. He desired to make clear that war with England because of the blockade is out of the question, and therefore there is no means of bringing pressure to bear. The speech coincides with the American view I have already reported that it would be easier to bring the war to an end than to force England to raise the blockade."

Hitherto I have not mentioned the different German vessels which visited United States ports during the war. Besides their history is well known. I will therefore only describe their psychological influence and my own experiences.

The auxiliary cruisers Kronprinz Friedrich Wilhelm and Eitel Friedrich were the first German ships to enter Hampton Roads, there to be interned.