Was told by a friend at the Foreign Office that the German note would contain a proposition that regular passenger ships should not be torpedoed without notice, but must carry no cargo other than passengers' baggage. Have heard Marine Department rather opposes this, but may favor proposition as to ships inspected and certified to carry no arms or ammunition. No note until after July fourth, they say at Foreign Office, on tip from Washington. (Note—German note was delivered to me July 8, 1915.)

Chancellor and von Jagow have been in Vienna, probably over Balkan question. The situation there hinges on Bulgaria. Germany wants a direct strip of territory for itself or Austria to Constantinople. Thirteen million pounds in gold sent recently by Germany to Turkey to keep the boys in line. Principal Socialist paper, the Vorwaerts, has been suppressed because it spoke of peace; reason given is that this kind of talk would encourage enemies of Germany.

The Germans are becoming more strict, even women now entering Germany must strip to the skin and take down their back hair. The wife of Hearst's correspondent here had to submit to this the other day.

At first, newspaper correspondents had to promise they would not go to enemy territory, next that they would not go to neutral territory (after one correspondent went to Denmark and sent out dispatches about the movement against annexing Belgium). Now the correspondents must promise not to go home. This is to keep secret the internal conditions. The women stormed a butter shop here the other day and our Consul reports, in Chemnitz, quite a serious food riot. The military were called out and the fire department turned hose on the crowd.

In Austria, I hear men up to fifty-five are being called to the colours and even the infirm taken for the army. There are said to be seven German and five Austrian army corps invading Servia. The losses of the invaders are reported to be heavy. To date, the German dead in this war number about seven hundred thousand. People who offered private hospitals at the beginning of the war and who were told these were not needed, have been requested to open them. I was told the remaining civil population of Vouziers, France (in German hands), had been removed to make room for German wounded.

The note of July 21, 1915, in which the President said he would regard the sinking of ships without warning as "deliberately unfriendly," is received with hostility by press and Government. Of course, the party of frightfulness has conquered those of milder views, owing largely to the aggressive newspaper campaign conducted by von Tirpitz, Reventlow and Company. The Germans generally are, at present, in rather a waiting attitude, perhaps anxious to see what our attitude toward England will be—but this will not affect their submarine policy. The Foreign Office now claims, I hear, that I am hostile to Germany, but that claim was to be expected. Of course, I had no more to do with the American note than they did, but it is impossible to convince them of that, so I shall not try.

Germany has the Balkan situation well in hand. Roumania can do nothing in the face of recent Russian defeats and has just consented to allow grain to be exported to Austria and Germany, but has, I think, not yet consented to allow the passage of ammunition to Turkey. The pressure, however, is great. If not successful, perhaps German troops will invade Servia so as to get a passage through to Turkey.

A minister from one of the Balkan States told me the situation of Roumania, Greece and Bulgaria was about the same, each state can last in war only about three months, so all are trying to gauge three months before the end and then come in on the winning side.

The Bulgarian Minister of the Public Debt got in here by mistake the other day, insisting he had an appointment; he had an appointment with the Treasurer, Helfferich, whose office is nearby. This shows, perhaps, that Bulgaria is getting money here.

Also the Germans are sending back to Russia, Russians of revolutionary tendencies, who were prisoners here, with money and passports in order that they may stir up trouble at home.