Third—-That each will require their respective merchant vessels not to use neutral flags for the purpose of disguise or ruse de guerre.
Germany to agree: That all importations of food or foodstuffs from the United States (and from such other neutral countries as may ask it) into Germany shall be consigned to agencies to be designated by the United States Government; that these American agencies shall have entire charge and control without interference on the part of German Government of the receipt and distribution of such importations, and shall distribute them solely to retail dealers bearing licenses from the German Government entitling them to receive and furnish such food and foodstuffs to non-combatants only; that any violation of the terms of the retailers' licenses shall work a forfeiture of their rights to receive such food and foodstuffs for this purpose, and that such food and foodstuffs will not be requisitioned by the German Government for any purpose whatsoever, or be diverted to the use of the armed forces of Germany.
Great Britain to agree: That food and foodstuffs will not be placed upon the absolute contraband list, and that shipments of such commodities will not be interfered with or detained by British authorities, if consigned to agencies designated by the United States Government in Germany for the receipt and distribution of such cargoes to licensed German retailers for distribution solely to the non-combatant population.
In submitting this proposed basis of agreement this Government does not wish to be understood as admitting or denying any belligerent or neutral right established by the principles of international law, but would consider the agreement, if acceptable to the interested powers, a modus vivendi based upon expediency rather than legal right, and as not binding upon the United States either in its present form or in a modified form until accepted by this Government.
BRYAN.
II.—GERMANY'S REPLY.
The German reply, handed to the American Ambassador at Berlin, follows:
BERLIN, March 1, 1915.
The undersigned has the honor to inform his Excellency, Mr. James W. Gerard, Ambassador of the United States of America, in reply to the note of the 22d inst., that the Imperial German Government have taken note with great interest of the suggestion of the American Government that certain principles for the conduct of maritime war on the part of Germany and England be agreed upon for the protection of neutral shipping. They see therein new evidence of the friendly feelings of the American Government toward the German Government, which are fully reciprocated by Germany.
It is in accordance with Germany's wishes also to have maritime war conducted according to rules, which, without discriminatingly restricting one or the other of the belligerent powers in the use of their means of warfare, are equally considerate of the interests of neutrals and the dictates of humanity. Consequently it was intimated in the German note of the 16th inst. that observation of the Declaration of London on the part of Germany's adversaries would create a new situation from which the German Government would gladly draw the proper conclusions.