I received the following reply from the Imperial Chancellor:

TELEGRAM IN CIPHER

"Berlin, 6th May, 1916.
"Reply to telegram No. 26.
"For Your Excellency's information.

"We hope that our Note and great concession finally removes cause
of mistrust, and opens era of greater mutual confidence. Animosity
of public opinion here against Wilson, as result of tone and contents
of his Note and impression of _parti pris_ against us, however, so
great that he must take open and unmistakable action with regard to
England before he would be accepted as unbiassed mediator by German
people. To this extent Gerard's telegram is premature. If Wilson
neglects to take such action, there is danger that the animosity
may become irremediable and possibility of mediation driven into
distant future. Smoothing the way for peace, of course, always
desired. Action against England, however, seems necessary to encourage
conciliatory attitude there, if a peace exclusively favorable to
England is to be avoided.

"If it is found impossible to induce England to discuss peace with
us, even though unofficially perhaps at first, we shall, as England
refuses to return to the provisions of the Declaration of London,
be placed in an absolutely free position with regard to our great
concession amounting to abandonment of submarine campaign. A visit
from House very welcome here at any time.

"BETHMANN-HOLLWEG."

Karl Helfferich's account confirms the view I held at that time,
that our concessions in respect of the submarine campaign were
essentially prompted by the hope of mediation by Mr. Wilson. The
following words of the Emperor make this plain:

"In politics it is necessary, before all things, to know the other
party's point of view; for politics are a question of give and take.
Gerard's utterances had made it clear that Wilson was seeking a
ladder for re-election. It was better, then, that we should offer
him the ladder of peace than the ladder of war, which will eventually
fall on our own heads."

Moreover, Herr von Bethmann-Hollweg has declared before the Commission
of the National Assembly that he had expressed to Mr. Gerard the
hope that the President would now take steps to bring about the
restoration of peace.

When, at that time, Colonel House was discussing with me the German
reservation in the Note of the 4th May, in connection with the
questions of the "Freedom of the Seas" and peace, he said that the
circu