The Press department of the Foreign Office has been reorganised by Zimmermann, and Hammann, the former head, fired. The new head is Major Deutelmoser, formerly of the General Staff, a personal friend of mine.

The Emperor is at Potsdam and consulted with Zimmermann, General von Kessel, etc., as to the reply to the President's peace note.

Berlin is much more melancholy than when I left. General von Kessel came to our American Colony Christmas tree for poor Berlin children. It was very pathetic. One little kid got up and prayed for peace and every one wept. I hope to get to see Ludendorff and Hindenburg soon and see how they feel toward America.

I went to Ruhleben, the British civilian camp, yesterday to tell the prisoners that all over 45 go home. It was quite a Christmas gift as 700 there are over that age. (Note: don't think this agreement of Germany and England ever went into effect!)

January, 1917. Germany wants a peace conference in order to make a separate peace on good terms to them with France and Russia, then hopes to finish England by submarines, then later take the scalp of Japan, Russia and France separately. The Allies ought to remember what Ben Franklin said about hanging together or separately. I get the above scheme from very good authority.

The weather is most depressing; dark, and rain every day. All hands seem cross. Zimmermann, I think, finds it much more difficult to be the responsible first than the criticising second. It is not as easy as it looked to him.

The Kaiser stated the other day that he did not expect peace now, that the English would try a great offensive in the spring and would fail.

Herbert Hoover writes me that the Germans are violating all their pledges in Belgium. He expects a year of great difficulties. I hear this confirmed on best authority and that even the German official who is supposed to see that food is not sent from Belgium to Germany in violation of Germany's pledges sends out butter to his family; that there is an absolute reign of terror in Belgium, sudden and arbitrary arrests, etc. I think the Germans want to see all foreign diplomats out of Bucharest and Brussels and the charges against Voypicka should be considered in that light.

The greatest danger from submarine war is that unthinking persons in the U. S. may start a crusade against the President's policy, encourage the Germans in the belief that we are divided and lead them to resume reckless acts in that belief. The continuance of a strong front is the very best way to keep the peace.

Both Zimmermann and the Chancellor asked me about Bernstorff, and returning good for evil, I said that he was O. K., on very good terms with the Government, well liked (sic) and that no one could do better!