"It is not my business, even were I in possession of all the necessary
facts, to say whether it would be better policy from our point of
view, to reply to this Note, or to leave it unanswered; I can only
describe the situation, as it appears to me at the moment. From
that point of view the decision must depend very largely on the
results which we expect to follow from the submarine campaign. If
this campaign is regarded as an end in itself, and we are justified
in believing that it can bring about the overthrow of England, it
would be wiser to leave the American note unanswered, and carry on
with the submarine campaign and turn a deaf ear to neutral protests.
If, on the other hand, this campaign is only a means to an end,
the end being the removal or slackening of the British blockade
restrictions, then I beg respectfully to urge that it would be
worth our while to make some concessions to President Wilson's
convictions, in the hope of achieving our object through his
co-operation. He is reported by a witness in whom I have complete
confidence, to have said: 'If I receive a favorable answer from
Germany I will see this thing through with England to the end.'

"Before this report reaches your Excellency, Wilson's Note will
have been delivered to the English Government. If this is couched
in as peremptory a tone as the one addressed to us, then I urgently
recommend that we should endeavor to come to an agreement with the
American Government on the basis of the following draft note. I hope
that your Excellency will send me an authorization by wireless--it
should be sent in duplicate for greater safety's sake--to enter
into negotiations on this basis; I believe that I can guarantee
to find a satisfactory principle to serve as a weapon for Wilson
in his attack on England. If we show ourselves ready to help him
out of his present difficulties, I am sure he for his part will
energetically prosecute against England his design of vindicating
the validity of international law. 'It can be,' said the President
himself in his last Note. In these three words may be seen the
conviction of Mr. Wilson, that he can impose his will upon England
in this matter.

"As I have already reported, I earnestly hope that it will be decided
to reply to the American note; and a reply should, to my mind,
deal with these three points:

"(1) Settlement of the _Lusitania_ incident. In this connection
it would be well to state that from the point of v