.
It was, therefore, eminently desirable that it should be able to
inform Congress that something had been done in the _Lusitania_
affair. Even if nothing comes of it they could answer that they
are waiting for a reply from Germany. President Wilson himself
does not believe in the possibility of the question being solved,
and hopes to keep the matter in the air until the conclusion of
peace, provided that public opinion does not become restive or new
eventualities occur. The _Ancona_ affair has had an unfavorable
effect in this respect. Even though it has not aroused any great
excitement, it has caused the whole question to be reopened, and
everyone on this side lays at our door the responsibility for the
Austrian act; for they base their reasoning on the assumption that
the war is directed entirely from Berlin. Whenever mention is made
of the _Ancona_ incident it recalls the fact that the _Lusitania_
question still remains unsettled.

It is a well known fact that we are faced here with an anti-German
ring of great influence. I have repeatedly pointed this out in my
reports. This ring is trying to exploit the _Ancona_ and _Lusitania_
questions with a view to driving into the background the American
Note to England and the British infringements of international
law. The Government is treating this anti-German ring with the
same weakness as are the majority of American private citizens.
They are submitting patiently to terrorization as well as continual
baiting and sneering. The recluse at the White House has, indeed,
great plans, but his freedom of decision is seriously compromised
by his anxiety to be re-elected. He refuses to allow himself to be
drawn into too serious extravagances; and so he certainly deserves
the credit for having prevented war with Germany, but he allows
himself, nevertheless, to be influenced by the anti-German ring
and hampered in the pursuit of his plans.

2. TELEGRAM IN CIPHER

"Washington, 2nd December, 1915.

"The Government here have lost their nerve as a result of the impending
Congress, the Hapag case, the _Ancona_ incident, and the explosions and
fires in munition and powder works, and like all private individuals
here are allowing themselves to be terrorized by the anti-German
ring. Hence the anxiety for the recall of Papen and Boy-Ed. The
Government fear that Congress will take the above questions, as
well as the _Lusitania_ affair, into their own hands, and deal with
them i