February, 1916. I dined last night at von Jagow's. He said I would get a note to-day which would accept all Bernstorff's propositions except, as he put it, one word, viz.: Germany will acknowledge liability for the loss of American lives by the sinking of the Lusitania, but will not acknowledge that the act of sinking was illegal. He said that international law had to be changed, that the submarine was a new weapon, and that, anyway, if a break came with America, that they had a lot of new submarines here and would make an effective submarine blockade of England. To-day a cipher from the German Foreign Office came in to be forwarded to the State Department for Bernstorff, so I suppose this is what he referred to. Probably the Germans are in earnest on this proposition. It is now squarely up to the American people to decide.
Of course, I am very much disturbed at the turn of affairs, but I am doing nothing except repeating to Lansing what is said to me, and trying to convince the Germans that we are in earnest.
I was very glad to see Colonel House in Berlin, for many reasons, and, especially, that the President may get his view of the situation here. He had long talks with the Chancellor, von Jagow, and Zimmermann, and also met Dr. Solf, the Colonial Minister; von Gwinner, head of the Deutsche Bank; Gutmann, of the Dresdner Bank; and Dr. Rathenau, head of the Allegemeine Electricitäts Gesellschaft and many corporations, who is now engaged with the General Staff in providing raw materials for Germany.
I think the Germans are getting short of copper and nickel, especially the latter. Copper lightning rods of churches have been taken and an effort was made to take the brass reading desk in the American Church and the fittings in the Japanese Embassy.
I think from underground rumours that the Germans and the propagandists will endeavour to embroil us with Japan.
Baroness von Schroeder, a von Tirpitz spy, stated the other day that Japan would send a note to the United States of America making demands on the U. S. in regard to the Japanese immigration question.
There was a well-defined report that Germany would issue a manifesto stating that enemy merchant ships would be fired on without notice and this because of orders alleged to have been found on British ships ordering merchant ships to fire on submarines at sight.
The Chancellor told me he was ready for peace but that all his emissaries had met with a cold reception in the Allied countries of France, England and Russia.
A fight against the Chancellor has been started in the home of the Junkers—the Prussian Chamber. The powerful liberal papers are jumping hard on the disturbers and the Chancellor hit back quite hard. These Junkers are demanding unlimited submarine war and are stirred up by von Tirpitz. It is one of their last kicks as soon a real suffrage will have to be introduced in Prussia. The Chancellor foreshadowed this in opening this Prussian Chamber; hence the tears!
The visit of Colonel House here was undoubtedly, from this end, a success; and I am glad that he can give the President a fresh and impartial view.