rmany, on condition
that certain strategic and economic modifications of the frontier
be allowed, as also financial compensation.

"Restitution of Belgium under definite guarantees for the safety of
Germany, which would have to be determined by means of negotiations
with the Belgian Government.

"Economic and financial settlement, on the basis of exchange, of
the territory invaded by both sides, and to be restituted by the
conclusion of peace.

"Compensation for German undertakings and private persons who have
suffered damage through the war.

"Renunciation of all economic arrangements and measures, which
after the peace would constitute an obstacle in the way of normal
commerce and trade, with the conclusion of corresponding commercial
treaties.

"The Freedom of the Seas to be placed on a secure basis.

"The peace terms of our Allies coincide with our own views, and
observe the same limits.

"We are, moreover, prepared to enter the International Conference
which he wishes to invoke after the war on the basis of his
communication to the Senate.

"Your Excellency will give President these details at the same
time as you hand him Note relating unrestricted U-boat war, and
will inform him as follows:

"If his offer had only reached us a few days earlier, we should have
been able to postpone opening of the new U-boat war. Now, however, in
spite of best will in the world, it is, owing to technical reasons,
unfortunately too late, as far-reaching military preparations have
already been made which cannot be undone, and U-boats have already
sailed with new instructions. Form and content of enemy's reply to
our offer of peace, and the Note of the President, were so abrupt
and harsh, that, in view of the life and death struggle which has
once again been proclaimed against us, we cannot any longer delay
the use of those means which appear to us best calculated to end the
war quickly, and for the relinquishment of which we could not have
taken the responsibility in the face of our whole nation.

"As the order regarding the unrestricted U-boat war shows, we are
prepared, at any moment, to make every possible allowances for
America's needs. We would beg the President to prosecute--that is
to say, pursue, his plan notwithstanding, and declare ourselves
ready to discontinue the unrestricted U-boat war the moment we
are completely assured that the President's efforts will lead to
a peace that would be acceptable to us.