The negotiations as to the still pending Lusitania case were carried on in Washington by Count Bernstorff and Secretary Lansing, and finally Germany offered to pay an indemnity for the death of the Americans on the Lusitania whose deaths Germany "greatly regretted," but refused to disavow the act of the submarine commander in sinking the Lusitania or to admit that such act was illegal.
About this time our State Department sent out a Note proposing in effect that submarines should conform to "cruiser" warfare, only sinking a vessel which defended itself or tried to escape, and that before sinking a vessel its passengers and crew should be placed in safety; and that, on the other hand, merchant vessels of belligerent nationality should be prohibited from carrying any armaments whatever. This suggestion was not followed up.
Zimmermann (not the one in the Foreign Office) wrote an article in the Lokal Anzeiger of which he is an editor, saying that the United States had something on their side in the question of the export of munitions. I heard that von Kessel, commander of the Mark of Brandenburg said that he, Zimmermann, ought to be shot as a traitor. Zimmermann hearing of this made von Kessel apologise, but was shortly afterwards mobilised.
Colonel House had arrived in Germany at the end of January, 1916, and remained only three days. He was quite worried by the situation and by an interview he had had with Zimmermann in which Zimmermann expressed the readiness of Germany to go to war with the United States.
In February, 1916, the Junkers in the Prussian Lower House started a fight against the Chancellor and discussed submarine war, a matter out of their province. The Chancellor hit back at them hard and had the best of the exchange. At this period it was reported that the Emperor went to Wilhelmshafen to warn the submarine commanders to be careful.
About March first it was reported that a grand council of war was held at Charleville and that in spite of the support of von Tirpitz by Falkenhayn, the Chief of Staff, the Chancellor was supported by the Emperor, and once more beat the propositions to recommence ruthless submarine war.
In March too, the "illness" of von Tirpitz was announced, followed shortly by his resignation. On March nineteenth, his birthday, a demonstration was looked for and I saw many police near his dwelling, but nothing unusual occurred. I contemplated a trip to America, but both the Chancellor and von Jagow begged me not to go.
From the time of the Lusitania sinking to that of the Sussex all Germany was divided into two camps. The party of the Chancellor tried to keep peace with America and did not want to have Germany branded as an outlaw among nations. Von Tirpitz and his party of naval and military officers called for ruthless submarine war, and the Conservatives, angry with Bethmann-Hollweg because of his proposed concession as to the extension of the suffrage, joined the opposition. The reception of our last Lusitania Note in July, 1915, was hostile and I was accused of being against Germany, although, of course, I had nothing to do with the preparation of this Note.
In August, 1915, the deputies representing the great industrials of Germany joined in the attack on the Chancellor. These men wished to keep Northern France and Belgium, because they hoped to get possession of the coal and iron deposits there and so obtain a monopoly of the iron and steel trade of the continent. Accelerators of public opinion, undoubtedly hired by the Krupp firm, were hard at work. These Annexationists were opposed by the more reasonable men who signed a petition against the annexation of Belgium. Among the signers of this reasonable men's petition were Prince Hatzfeld (Duke of Trachenberg) head of the Red Cross, Dernburg, Prince Henkel Donnersmarck, Professor Delbrück, von Harnack and many others.
The rage of the Conservatives at the Arabic settlement knew no bounds, and after a bitter article had appeared in the Tageszeitung about the Arabic affair, that newspaper was suppressed for some days,--a rather unexpected showing of backbone on the part of the Chancellor. Reventlow who wrote for this newspaper is one of the ablest editorial writers in Germany. An ex-naval officer, he is bitter in his hatred of America. It was said that he once lived in America and lost a small fortune in a Florida orange grove, but I never succeeded in having this verified.