We now come to the moment in this account when the peace offer of the Imperial Government got involved with Mr. Wilson's plans for mediation. It is not my intention to go closely into the events that occurred in Berlin or the considerations that took effect there, as I only know them through their reaction on the instructions sent to me. I will only mention briefly, that, according to the statement of Herr von Bethmann-Hollweg before the Commission of the National Assembly, the peace offer of the Imperial Government was made with a view to influencing the pacifist minorities in the Entente countries, and working, through the people, on the Governments. Beyond this there was no intention of cutting out Mr. Wilson's peace move, but the Imperial Government wanted to have "two irons in the fire." Finally, all the utterances of the Imperial Government, which do not seem to tally with these two principles of their policy, are to be regarded as based on purely tactical motives. Accordingly, the decisive turn in our policy did not occur until the 9th January, 1917, when the decision to resort to the unrestricted submarine war was taken. Until then the policy followed was that of "two irons in the fire."

This is the way in which I read the situation in Washington at the time. If I had been convinced that the resignation of Herr von Jagow and the German peace offer meant a definite departure from the policy which we had hitherto followed with regard to Mr. Wilson's peace step, I should have immediately sent in my resignation, as I was completely identified with this policy. However, I shall return to this side of the question later.

The following telegram from the Foreign Office gave me the official information of our peace offer:

Cipher Telegram No. 128

"Berlin, 9th December, 1916.

"Confidential, for your personal information.

"We have decided to make use of the favorable position created by the fall of Bukarest in order, according to telegram number 116 of the 21st November, to make a peace offer in conjunction with our Allies, probably on Thursday, the 12th December. We do not at the present moment run any risk of damaging our prestige or showing signs of weakness. Should the enemy reject the offer the odium of continuing the war will fall upon them. For reasons stated in telegram number 121 we could not wait any longer for President Wilson to make up his mind to take action.

"The American Embassy here will at the given moment receive a Note in which the American Government will be requested to communicate our peace offer to those of our enemies with whom they represent our interests. Our other enemies will be informed through the medium of Switzerland and Spain respectively. American representative in conversation with Chancellor on 5th December expressed himself, in confidence, on the President's mission, among other things, as follows: 'What the President now most earnestly desires is practical cooperation on the part of German authorities in bringing about a favorable opportunity for soon and affirmative action by the President looking to an early restoration of peace.' Chancellor replied to American representative, he was 'extremely gratified to see from the President's message that in the given moment he could count upon the sincere and practical co-operation of the President in the restoration of peace, as much as the President could count upon the practical co-operation of German authorities.' We think we may assume that our action meets the wishes of the President.

"Please interpret it in any case in this sense to the President and House.

"Von Stumm."