This speech displayed all the characteristics of Mr. Wilson's oratory: brilliant command of the English language, dazzling wealth of vocabulary and nebulous sentence construction which made the purpose clear only to the initiated. Nevertheless, the vital points of the speech could not be misunderstood. It prepared the world for American mediation by strong emphasis of the League of Nations idea.

The political lull of midsummer brought an important improvement in public feeling towards us. This change for the better was reflected with special clearness in the reception given to the merchant submarine Deutschland, as I have already described.

At the time of this speech of Mr. Wilson's, I sent the following report:

Report in Cipher

"Washington, 28th May, 1916.

"The placation of American public opinion is progressing. Hardly any mention is now made in the Press of German-American relations. Only two persons are still wavering. The American Government are delaying the publication of my letter on the subject of the Lusitania settlement, because they think that it will not satisfy public opinion here. It may be assumed that its publication will take place at the beginning of June, during the Republican National Convention, so that it may pass as far as possible unnoticed in the general excitement about domestic politics. The American Government's delay in this matter shows clearly how great the opposition has been. While we thought to have made important concessions, the American Government here consider that they have not attained the objective prescribed for them by public opinion.

"Further, the Igel incident is not yet settled. On this question there is a difference of opinion between the State and Law Departments. The former confirming our standpoint that the seizure of the papers was illegitimate and that they must be returned. The Law Department, on the other hand, holds that Herr von Igel has been guilty of a legal offence and so has forfeited his diplomatic privileges. Consequently I get no further, and the case is continually deferred. It is to be hoped that the State Department will soon bestir itself to make a decision which will, however, in any case, necessitate the recall of Herr Igel.

"Mr. Wilson's peace plans are becoming more and more tangible. The only question is whether he possesses sufficient authority to force our enemies to agree to negotiations. Colonel House is convinced that Mr. Wilson will succeed. The President is considering the plan of calling together a conference at the Hague, in which the neutrals will only participate so far as the 'Freedom of the Seas' is concerned. If the project materializes, Colonel House is sure to take part in the conference, even though he may not be the official American representative. His influence, however, would be sure to be great, for no one else is so completely in touch with Mr. Wilson's views. The latter is still of the opinion that the United States should under no circumstances take part in the actual settlement of the peace conditions. He and his alter ego are meanwhile very much afraid that our enemies might remain obdurate, since they are under the impression, or are trying to spread the impression, that the President, in opening the peace negotiations, is acting for Germany. Certainly England continually drags this idea into the discussion. At one time it is said that Prince Bülow is coming here to submit the German peace conditions to Mr. Wilson; at another, that Germany is on the brink of starvation and must therefore sue for peace. We ought as far as possible to counteract this propaganda of our enemies. It is to be hoped that it will not do serious harm, because the peace vote in America continues to grow and Mr. Wilson can count with certainty on re-election if he establishes a peace conference. We shall therefore daily gain ground here so long as we appear to be ready to encourage the American peace movement, while our enemies adopt an unfavorable attitude. The American people is now pacifically minded. It becomes clearer every day how difficult it is to arouse enthusiasm for war preparedness, etc. No one who has lived here for any length of time can help coming to the conclusion that peaceful money-making is the Americans' chief interest in life. Only when they think that their rights have been seriously infringed do they lash themselves into an hysterical war-fever. Why should war passion smoulder in the hearts of a people whose boundaries are so secure that no enemy has ever been seen inside them, nor in all human probability ever will be?"

After the settlement of the Sussex incident the Imperial Government naturally hoped that Mr. Wilson would take steps to justify our concessions with regard to the submarine question. Accordingly I received the following general instructions:

"Berlin, 7th June, 1916.