thorized you only to
give information confidentially to American Government. Premature
publication in American Press places us in difficult position here,
especially as no official report of actual contents of your
communication to Mr. Lansing has reached us. I beg that you will
kindly furnish an explanation.

(Signed) JAGOW."

(3) CIPHER REPORT

"Cedarhurst, October 2nd, 1915.

"Reference your wire No. A 129 of September 10th, I ask your Excellency
to be kind enough to pardon me for having taken upon myself to act
on my own responsibility over the submarine question. The position
at the end of August rendered some action to pacify public opinion
imperative, if a breach were to be avoided. Owing to the difficulties
of communication with Berlin I could do nothing but acquaint Mr.
Lansing with a portion of my instructions concerning the case of
the _Lusitania_--the only ones which had then reached me. I at once
reported my action to your Excellency in my wireless message, No.
179, and in a previous telegram, No. 165, and requested approval
of my action; probably these messages have been delayed in transit,
or have not reached Berlin. In further explanation, I may add that
in this country, confidential matter, in the European sense, does
not exist, and such matter can never be kept a secret from the
Press. Sometimes I have been able to come to an agreement with the
Government over the wording of their _communiques_ to the Press;
that is one of the great advantages of conducting the negotiations
on the spot. Had the whole American Press entirely refused to accept
our official explanations, nothing further could have been done
with the Government."

While my negotiations with Mr. Lansing in Washington for a simultaneous
settlement of the _Arabic_ and _Lusitania_ questions were still
in progress, a memorandum was handed to Mr. Gerard, the American
Ambassador in Berlin which purported to justify the action of the
offending submarine commanders. Thus the situation once more became
acute. The contents of this document were as follows:

"On August 19th a German submarine held up the English steamer
_Dunele_ about sixty miles south of Kinsale, and having ordered
the crew to leave the ship, were about to sink it by gun-fire when
the commander observed a large steamer heading directly towards
him. This latter, which afterwards proved to be the _Arabic_, bore
no ensign, or other marks of neutrality, and was thus