"1. As the result of the English effort to stop all foreign commerce with Germany, Germany would do everything in her power to destroy English commerce and merchant shipping. There was, however, never at any time an intention to destroy or interfere with neutral commerce or to attack neutral shipping unless engaged in contraband trade. In view of the action of the British Government in arming merchant vessels and causing them to disguise their national character, the occasional destruction of a neutral ship was unavoidable. Naval officers in command of submarines had been instructed originally, and new and more stringent instructions had been issued repeatedly, to use the utmost care, consistent with their own safety, to avoid attacks on neutral vessels.
"2. In case a neutral ship should be destroyed by a submarine the German Government is prepared to make an immediate and formal expression of its regret and to pay an indemnity, without having recourse to a prize court.
"3. All reports with regard to the destruction of a neutral vessel by a German submarine are investigated at once by both the German Foreign Office and Admiralty and the result is communicated to the Government concerned, which is requested in return to communicate to the German Government the result of its own independent investigation. Where there is any material divergence in the two reports as to the presumed cause of destruction (torpedo or mine), the question is to be submitted to investigation by a commission composed of representatives of the two nations concerned, with a neutral arbiter whose decision will be final. This course has already been adopted in two cases, in which a Dutch and a Norwegian vessel, respectively, were concerned. The German Government reserves its right to refuse this international arbitration in exceptional cases where for military reasons the German Admiralty are opposed to its taking place."
Director Kriege told Mr. Jackson that a written communication in which the substance of the foregoing would be contained, would soon to be made to the Embassy.
Mr. Jackson put this conversation down in the form above given and showed Director Kriege a copy of it. Later in the day Geheimrat Simon called on Mr. Jackson at the Embassy and said that Dr. Kriege would like to have point two read as follows:
"In case through any unfortunate mistake a neutral ship," and continuing to the end; and that Dr. Kriege would like to change what was written on point three beginning with "Where there is" so that it should read, as follows:--"Where there is any material divergence in the two reports as to the presumed cause of destruction (torpedo or mine), the German Government has already in several instances declared its readiness to submit the question to the decision of an international commission in accordance with the Hague Convention for the friendly settlement of international disputes."
This had been suggested by Director Kriege in case it should be decided to make a communication to the American Press. Mr. Jackson told Geheimrat Simon that he would report the subject of his conversation to me, but that it would depend upon me whether any communication should be made to the American Government or to the press upon the subject.
Of course, the news of the torpedoing of the Lusitania on May seventh and of the great loss of American lives brought about a very critical situation, and naturally nothing was done with Kriege's propositions.
It is unnecessary here for me to go into the notes which were exchanged between the two governments because all that is already public property.
Sometime after I had delivered our first Lusitania Note of May 11th, 1915, Zimmermann was lunching with us. A good looking American woman, married to a German, was also of the party and after lunch although I was talking to some one else I overheard part of her conversation with Zimmermann. When Zimmermann left I asked her what it was that he had said about America, Germany, Mr. Bryan and the Lusitania. She then told me that she had said to Zimmermann that it was a great pity that we were to leave Berlin as it looked as if diplomatic relations between the two countries would be broken, and that Zimmermann told her not to worry about that because they had just received word from the Austrian Government that Dr. Dumba, the Austrian Ambassador in Washington, had cabled that the Lusitania Note from America to Germany was only sent as a sop to public opinion in America and that the government did not really mean what was said in that note. I then called on Zimmermann at the Foreign Office and he showed me Dumba's telegram which was substantially as stated above. Of course, I immediately cabled to the State Department and also got word to President Wilson. The rest of the incident is public property. I, of course, did not know what actually occurred between Mr. Bryan and Dr. Dumba, but I am sure that Dr. Dumba must have misunderstood friendly statements made by Mr. Bryan.