would affect unequally
the relations of the United States with the nations at war would be an
unjustifiable departure from the principle of strict neutrality."

Two months later the discussion was renewed by the Austro-Hungarian
Government. The Austrian note did not question the intention of the
United States to conform to the letter of the law, but complained that
we were not carrying out its spirit, and suggested that a threat to
withhold food stuffs and raw materials from the Allies would be
sufficient to protect legitimate commerce between the United States and
the Central Powers. To this note Secretary Lansing replied at length.
He held: (1) that the United States was under no obligation to change
or modify the rules of international usage on account of special
conditions. (2) He rejected what he construed to be the contention of
the Austrian Government that "the advantages gained to a belligerent by
its superiority on the sea should be equalized by the neutral powers by
the establishment of a system of non-intercourse with the victor." (3)
He called attention to the fact that Austria-Hungary and Germany had
during the years preceding the present European war produced "a great
surplus of arms and ammunition which they sold throughout the world and
especially to belligerents. Never during that period did either of
them suggest or apply the principle now advocated by the Imperial and
Royal Government." (4) "But, in addition to the question of principle,
there is a practical and substantial reason why the Government of the
United States has from the foundation of the Republic to the present
time advocated and practised unrestricted trade in arms and military
supplies. It has never been the policy of this country to maintain in
time of peace a large military establishment or stores of arms and
ammunition sufficient to repel invasion by a well-equipped and powerful
enemy. It has desired to remain at peace with all nations and to avoid
any appearance of menacing such peace by the threat of its armies and
navies. In consequence of this standing policy the United States
would, in the event of attack by a foreign power, be at the outset of
the war seriously, if not fatally, embarrassed by the lack of arms and
ammunition and by the means to produce them in sufficient quantities to
supply the requirements of national defense. The United States has
always depended upon the right and power to purchase arms and
ammuni