masses of men and an enormous
quantity of war material. The German army checked the advance of
the numerically superior enemy; further attacks, as we have every
reason to believe, will also be shattered by the heroism of the
men and the iron will of their leaders.

Judging from all our experiences hitherto in the war, we may
consider the situation of the Allied armies on the Isonzo with the
same confidence.

The Eastern front has been greatly reduced owing to the political
upheaval in Russia. There can be no question of an offensive on a
large scale on the part of Russia. A further easing of the
situation would release more men even if it were considered
necessary to have a strong barrier on the Russian frontier to
guard against local disturbances owing to the revolutionary
movement. With the additional forces, the conditions in the West
would become more favourable for us. The withdrawal of men would
also provide more troops for the Austrian-Hungarian Monarchy for
the successful carrying out of the fighting on the Italian front
until the end of the war is reached.

In both Allied Monarchies there is an ample supply of raw material
for the manufacture of munitions. Our situation as regards
provisions is such that with the greatest economy we can hold out
until the new harvest. The same applies to Austria-Hungary,
especially if her share of the supplies from Roumania are taken
into consideration.

The deeds of our navy rank beside the successes of the army. When
Admiral von Holtzendorff was permitted to lay before His Apostolic
Majesty the plans for the U-boat warfare, the prospects of success
for this stringent measure had been thoroughly tested here and the
expected military advantages weighed against the political risk.
We did not conceal from ourselves that the infliction of a
blockade of the coasts of England and France would bring about the
entry into war of the United States and, consequently, a falling
off of other neutral states. We were fully aware that our enemies
would thus gain a moral and economic renewal of strength, but we
were, and still are, convinced that the disadvantages of the
U-boat warfare are far surpassed by its advantages. The largest
share in the world struggle which began in the East has now been
transferred to the West in ever increasing dimensions, where
English tenacity and endurance promote and strengthen