because the latter took up the strict legal standpoint
that the traffic in munitions was permissible, and that it would
therefore be a breach of neutrality in our favor if such traffic
were forbidden after the outbreak of hostilities. President Wilson
himself even had an idea of nationalizing the munition factories,
which would have rendered traffic with the combatant Powers a breach
of international law. When, however, he sounded Congress on this
matter, it became evident that a majority could not be obtained
for such a step. The United States had already brought forward
a similar proposal at the Hague Conference with the intention of
conceding one of the chief demands of the pacifists. It was in
wide circles in America an axiom that the munitions factories were
the chief incentives to war. As during the first winter of the
war there were very few such factories in America the President's
plan was not merely Utopian but meant in all seriousness, in which
connection it should be noted that American industrial circles were
among Mr. Wilson's bitterest opponents. If Mr. Wilson's proposal
had been known to German public opinion he would have been more
favorably judged.

The negotiations which I had to carry out on this question of the
munitions traffic concerned themselves also with the question of
the coaling of our ships of war. This was based on an agreement
between the American Government and the Hamburg-Amerika line. The
port authorities had at first shown themselves agreeable. As a
result of the English protest the attitude of the American Government
became increasingly strict. With the actual coaling I had nothing
to do. That came within the sphere of the Naval Attache, who, for
obvious reasons connected with the conduct of the war at sea, kept
his actions strictly secret. My first connection with this question
was when I was instructed to hand over to the American Government
the following memorandum, dated 15th December, 1914:

"According to the provisions of general international law, there is
nothing to prevent neutral States from allowing contraband of war
to reach the enemies of Germany through or out of their territory.
This is also permitted by Article VII. of the Hague Convention of the
19th October, 1907, dealing with the rights and duties of neutrals
in the case of land or sea war. If a State uses this freedom to the
advantage of our enemies, that State, according to a generally
recognized provision o