by telegram as to the position.

"ZIMMERMANN."

To this telegram I sent the following replies:

CIPHER TELEGRAM NO. 164

REPLY TO TELEGRAM NO. 121

"Washington, 1st December, 1916.

"To-morrow I shall see House in New York and will try to arrange
that Gerard, who is to sail on 5th December, is kept back.

"Lansing expressed himself very strongly to me on the subject of
the American protest with regard to the Belgian deportations. These
have endangered the whole Belgian relief movement; in addition,
feeling here has been poisoned against us, and that just at a moment
when it looked as though peace negotiations might be begun. Lansing
expressed the view that, if the Imperial Government could find a
way of yielding to the protests of the neutrals, this would make a
strong impression in our favor and that it would probably be possible
immediately afterwards to propose the opening of peace negotiations.
Hitherto, unfortunately, something has always intervened.

"The Federal Reserve Board's warning to the banks against unsecured
promissory notes of foreign States is the first sign that the Government
here wishes to put pressure on our enemies."

CIPHER TELEGRAM

"Washington, 4th December, 1916.

"Pursuant to Telegram No. 164 of the 1st inst.

"House told me in strict confidence question of Mr. Gerard's return
has been thoroughly discussed by him with Mr. Wilson and Mr. Lansing.
Mr. Gerard's unpopularity in Berlin and his unfriendly manner were
well known here. However, no satisfactory successor was available,
and Mr. Gerard is at least straightforward and does exactly what he
is told. He has received very detailed instructions here, and is
even quite enthusiastic over the idea of assisting in bringing about
peace. In addition, Mr. Gerard was so pleased at the appointment of
the Secretary of State that he is sure to adopt a more friendly
attitude in future.

"As a matter of fact, Mr. Gerard has everywhere described the changes
in the personnel at the Foreign Office as extraordinarily favorable
for German-American relations, and laid particular stress on his
personal friendship with the Secretary of State.

"Everything is prepared for a peace move, but with Mr. Wilson still
hesitating, it is still doubtful when he will take action. All
the authorities here have now been won over to favor such a step.
This may then come at any time, especially if it is possible for
us to adopt a conciliatory att