e cannot, however, count on anything now, because the
anti-German ring are seeking to terrorize all who do not agree
with them. The senators and members of Congress from the west are
certainly more difficult to influence, as their constituents have
only a slight economic interest in the cause of our enemies. It
is also probable that the senators from the south will all stand
by us, because they are very much embittered against England on
account of the cotton question. Nevertheless, we must, as I have
already pointed out by telegram, be fully prepared for further
negotiations on the subject of the _Lusitania_. If we refuse to
give way at all, the breaking of diplomatic relations, followed
by war, is inevitable. In my opinion it is out of the question to
find a formula that will satisfy public opinion on both sides. It
may, however, be possible to find a formula that will skim over the
points of contention, as was done in the _Arabic_ case. In spite
of all the outcry over here there is no doubt that the American
Government and the greater part of public opinion would be only
too delighted if we could find a graceful way of settling the
_Lusitania_ question without a conflict. What is required in the
first place is:

"1. A. declaration on our side that the attack on the _Lusitania_
should be regarded as an act of reprisal and, therefore, not within
the scope of existing international law.

"2. The payment of an indemnity, which in my opinion could be made
without committing ourselves on the question of responsibility.

"President Wilson had hoped that the whole question could be shelved
until after the end of the war. Now the war still drags on, and Mr.
Wilson is afraid of radical intervention on the part of Congress.
Over here it is quite impossible to prophesy. The unexpected is the
only thing that consistently recurs. No one can say what Congress
will do. Meanwhile, it is my duty to describe the situation as I
see it to-day. Whether the _Lusitania_ question is of sufficient
practical importance to allow it to bring upon us the breaking-off
of diplomatic relations and war with the United States I must leave
it to the exalted judgment of your Excellency to decide."

* * * * * *

The American Government had established a basis for the negotiations
with regard to the _Lusitania_ and "the Freedom of the Seas" which
was in our favor when, on the 21st October, they sent a very
c