I am to meet Prince Buelow, ex-Chancellor, to-morrow and may fish up something interesting.

The Kaiser has gone to the front, probably Russian. Next war loan will be 12 milliards.

Helfferich lunched here last Sunday. He speaks English fairly well. Zimmermann is laid up with the gout.

In the Reichstag debate yesterday, Stresemann, applauded by all except Socialists, said that Germany threw away Wilson as a peace-maker. However, the Government is pleased with President's peace talk, as it keeps the people from thinking of food and U-boat crises.

U-boat question will come up again, when Pan-Germanists and Conservatives demand a reckless U-boat war because we have done nothing against England.

Harden's paper has been confiscated again.

June, 1916. I am sorry to lose Ruddock, who is sent to Belgium, but it is a good appointment, as his knowledge of German and relations here will help matters.

The debates in the Reichstag have been quite interesting yesterday and the day before. The Chancellor, irritated by the anonymous attacks on him in pamphlets, etc., made a fine defence. In the course of the debate allusions were made to President Wilson and the U-boat question. The U-boat question may break loose again any day.

I do not think that either Austria or Germany wishes President Wilson to lay down any peace conditions. There may possibly be a Congress after the Peace Congress, but meanwhile all parties here feel that America has nothing to do with peace conditions. America can bring the parties together, but that is all. The speech about the rights of small peoples has, I hear, made the Austrians furious, as Austria is made up of many nationalities and the Germans say that if the rights of small peoples and peoples choosing their own sovereignty is to be discussed, the Irish question, the Indian question and the Boer question, the Egyptian question and many others involving the Entente Allies must be discussed. I think that generally there is a big change in public opinion and the Germans are beginning to realise that the President is for peace with Germany.

The Germans expect that by September preparations will be finished and that the Suez Canal will be cannonaded, bombed and mined so that it will dry up, and then the Indian-Afghan troubles will begin.