Yesterday there was a conference of all party leaders at the Chancellor's. I understand nothing was said about America or submarine question. I doubt this. The Press here and certain other agencies are trying to convince America that all is peaceful, but Baron Mumm two days ago told Elkus, in this house, that the ruthless submarine war undoubtedly would be resumed.

In general conversation with von Jagow, recently, he said that the offensive on the Somme could not continue without the great supply of shells from America. He also said that recently a German submarine submerged in the Channel had to allow 41 ships to pass, and that he was sure that each ship was full of ammunition and soldiers but probably had some protecting American angels on board, and, therefore, the submarine did not torpedo without warning. He seemed quite bitter.

The wife of an American newspaper correspondent was recently attacked in the street. Of course, the husband will not cable this to America. Two stenographers from this Embassy were recently slapped on coming out of a theatre because they were speaking English.

Reventlow's paper was recently suppressed and Reventlow forbidden to write without special permission. This is a good sign from the Chancellor.

Dr. Hale was recently given a special trip to the West front, and allowed to talk to the Crown Prince, etc.

December, 1916. The Germans are simply delighted with the President's peace note. Only a few cranks or conservative papers are against it.

I saw Zimmermann the day after my arrival. He was most friendly and said he hoped he and I would be able, as usual, to settle everything in a friendly manner.

Yesterday he lunched here and gave me the German reply after lunch. He told me at the first talk that he, the Chancellor, Hindenburg and Ludendorff were all working together. Most people here say that Hindenburg and Ludendorff are at present the real rulers of Germany. Zimmermann remarked that there was no danger from "reckless" submarine war.

Zimmermann said he regretted the sending of the Belgians to Germany but it was hard now to go back on what they had done. I have some hope that a retreat may be arranged—possibly by sending the Belgians back gradually and saying nothing about it.

The American Chamber of Commerce are to give a big dinner January sixth to welcome me back. Zimmermann and von Gwinner, head of Deutsche Bank, have agreed to speak and many prominent Germans have accepted.