the
resistance of our enemies by varied means. A definite and
favourable result for us could only be achieved by a determined
attack on the vital spot in the hostile forces; that is, England.

The success obtained and the effect already produced by the U-boat
warfare far exceed all calculations and expectations. The latest
statements of leading men in England concerning the increasing
difficulty in obtaining provisions and the stoppage of supplies,
as well as corresponding comments in the Press, not only include
urgent appeals to the people to put forth their utmost strength,
but bear also the stamp of grave anxiety and testify to the
distress that England is suffering.

The Secretary of State, Helfferich, at a meeting of the Head
Committee of the Reichstag on the 28th ult., gave a detailed
account of the effects of the U-boat warfare on England. The
review was published in the _Norddeutsche Allgemeine Zeitung_ of
the 1st inst. I beg herewith to refer to the enclosed.[8]

According to the latest news the Food Controller, Lord Rhondda,
owing to the inadequate supply of corn, has been compelled to
specify a new allotment of cargo space. This is already so
restricted that more room for corn can only be secured by
hindering the conduct of the war in other ways. Apart from
abandoning overseas traffic, vessels could only be released by
cutting down such imports as absorbed much space. England requires
not only great transport facilities for provisions but also for
the import of ore to keep up war industries, and also pit props to
enable the coal output to be kept at a high level. In the case of
the ore needed for England and the wood available in the country,
it is not possible to restrict the cargo space in these two
instances. Already, after three months of the U-boat warfare, it
is a fact that the shortage of cargo space caused by the U-boats
reduces the living conditions of the population to an unbearable
extent, and paralyses all war industries, so much so that the hope
of defeating Germany by superior stores of munitions and a greater
number of guns has had to be given up. The lack of transport
facilities will also prevent the larger output of war industries
in America making up for the lesser output in England. The speed
with which the U-boat warfare has destroyed vessels excludes the
possibility of building new vessels to furnish adequate