r diplomatic relations with the German Empire altogether.
This action the Government of the United States contemplates with
the greatest reluctance, but feels constrained to take in behalf
of humanity and the rights of neutral nations."

After this Note it is obvious that there was no longer any doubt
in Berlin, that persistence in the point of view they had hitherto
adopted would bring about a break with the United States, for I
received instructions to make all preparations for German merchant
ships lying in American ports to be rendered useless by the destruction
of their engines.

I also received orders to arrange that Mr. Gerard, who had not
been informed of the minimum demands of the American Government,
should be instructed accordingly.

My reply was as follows:

CABLEGRAM IN CIPHER

"Washington, 1st May, 1916.

"House has informed me that at his request Gerard has already been
informed of the minimum demands of the American Government. Wilson
is strongly influenced by peace votes. Even the anti-German ring
desires the end of the war, as otherwise they fear financial loss. My
suggestions are based on the view that submarine warfare, according
to international law, is valueless, and in any case, the opening
of peace negotiations is more important. It would be advisable
in the Note of reply to touch only on the principal points, to
talk much of international law and humanity, and to leave details
to be settled at a later date. I fear that the continuance of the
submarine campaign, on the lines of cruiser warfare, only means
the postponement of the rupture as fresh incidents are bound to
occur."

On the 4th May followed the German reply, which averted the fourth
serious crisis, by declaring that the submarine campaign would
return to the recognized laws of cruiser-warfare. The Note began
by opposing, in strong terms, the American view, and concluded
with the following sentences:

"The German Government feel themselves justified in declaring that
it would be impossible to answer to humanity and history, if, after
twenty-one months of war the contention over the submarine war
were allowed to develop into a serious menace to peace between
the German and American peoples. Such a development the German
Government will do everything in their power to prevent. They desire,
at the same time, to make a final contribution towards confining--so
long as the war lasts--the war to the present combatant Powers,