over here in the direction
of peace.

"The Mexican question is still in a state of stagnation as a result
of diplomatic negotiations. This affair interests practically no
one any more and proved to have no influence on the election.

"If Your Excellency still desires Wilson to intervene it is necessary,
in view of the above, to get rid as soon as possible of the _Marina_
and _Arabia_ incidents without further controversy and not to allow
any fresh controversies to arise. I think that, with the help of House,
I can bury these two incidents without attracting much attention, as
this is the wish of Wilson himself. As House said, the President
takes a tragic view of these incidents, because, after the _Sussex_
Note, he could not possibly write another Note, and therefore,
there is nothing left but to break off diplomatic negotiations,
should it be impossible to dispose of the matter privately and
confidentially with me.

"Next week Gerard will be in Washington for a day or two: he will
lunch with me and dine with Lansing. House keeps him in strict
control. In case Gerard's return to Berlin is not desired, please
send me instructions. Otherwise he should be there again at the
end of the year."

To this telegram, which announced very definitely the American
mediation, I received from the Foreign Office the following reply:

CIPHER TELEGRAM NO. 121

"Berlin, 26th November, 1916.

"Replacement, or at least further retention, of Gerard in America
desired in Berlin, provided that it is possible without wounding
his vanity and sensitiveness to our disadvantage, that it is certain
that this hint from our side will not become known in America and
that a suitable successor is available.

"We should prefer Wilson's peace move to the step on our part mentioned
in our telegram No. 116 of the 22nd November. For this reason it
is eminently desirable that Wilson should make up his mind for
immediate action if possible at the opening of congress or immediately
afterwards. If it is put off until the New Year or later, the lull
in military operations during the winter campaign would moderate
the desire of public opinion for peace, and on the other hand would
make preparations for the spring offensive necessary which would
probably strengthen the military opposition of a peace movement.
Please place this point of view cautiously and without _empressement_
before House as your personal opinion and keep me closely instructed