s from here I am not in a position
to get a clear insight into the position of affairs in America.

"VON JAGOW."

I have already mentioned that Mr. Wilson had for some time past
subordinated the question of the "Freedom of the Seas," i.e., in
this concrete instance the English blockade, to his desire for
mediation. Regarded from his point of view, this new ordering of his
plans was based on an entirely correct political train of thought.
The President gave first place to the attainable, with a view to
taking up later what was for the time being unattainable. In view
of the fact that we could bring no pressure to bear to change Mr.
Wilson's point of view, it only remained for us to exploit his
plans as far as possible in the interests of German policy.

As my instructions on the most important point--the question of
mediation--did not appear to me sufficiently clear, I asked in the
following report, dated from the summer quarters of the Embassy,
for a more detailed explanation:

REPORT IN CIPHER

"In reply to Order A. 56,
"Rye, 13th July, 1916.

"The inactivity of Mr. Wilson, who has only one thought, re-election,
is due in the first place to the fact that no pressure is being put
upon him by American public opinion to take action with regard to
England. It is obvious that conditions here are not favorable to
such action. Those American circles which are suffering financial
losses as a result of the English blockade, have no weight in face
of the tremendous stream of gold which our enemies have poured
lavishly over this country, not haggling over details, and conniving
at 'graft.' For the rest, Mr. Wilson's train of thought with regard
to action in respect of England practically coincides with that
expressed by Your Excellency. He does not think at present that it
is likely to meet with any success, as he has no means of bringing
pressure to bear. No one would take him seriously if he threatened
England with war.

"The position is quite different with the President's well-known
anxiety to bring about peace in Europe. In this matter he now has
the whole of American public opinion behind him. He also believes
that, after the expected failure of their present offensives, our
enemies will be ready to open peace negotiations. If this assumption
proves unfounded, and our enemies reject an American invitation
on these lines, the main question dealt with in Your Excellency's
instructions to me will be sett