h full consideration, however, of this conduct of the commander,
aimed at accomplishing the rescue of the crew and passengers, the
Imperial and Royal Marine authorities reached the conclusion that he
had omitted to take adequately into consideration the panic that had
broken out among the passengers, which rendered difficult the taking
to the boats, and the spirit of the regulation that Imperial and
Royal Marine officers shall not fail in giving help to anybody in
need, not even to an enemy.

"Therefore the officer was punished, in accordance with the existing
rules, for exceeding his instructions."

On the question of reparation by indemnity for the loss of American
lives, Austria-Hungary would not admit liability for damages resulting
from the "undoubtedly justified bombarding of the fleeing ship," but
was willing to come to an agreement on the subject.

It will be seen that the note did not denounce the attack on the
_Ancona_ as "illegal and indefensible"; but Austria's acquiescence in
the American demand for the punishment of the submarine commander was
viewed as a virtual admission of the illegality and indefensibility of
the method of attack. Coupled with her expressed disposition to pay
damages and her acceptance of the humane principle of warning and
safety to passengers, Austria regarded her concessions as closing the
_Ancona_ issue, in so far as it affected the friendly relations
between the two Governments. As the complaint of the American
Government had been principally against the method of attack, and had
been met by Austria, the crisis passed.

CHAPTER LXI

THE LUSITANIA DEADLOCK--AGREEMENT BLOCKED BY ARMED MERCHANTMEN
ISSUE--CRISIS IN CONGRESS

The _Lusitania_ negotiations were resumed, only to encounter a deadlock.
The issue had been eased in one important particular--Germany's
undertaking, drawn from her in the _Arabic_ crisis, not to sink unarmed
merchant vessels without warning and regard for the safety of passengers
and crews. But there remained the no less vital questions of indemnity
to relatives of the Americans who lost their lives when the _Lusitania_
sank and a disavowal by Germany of the submarine commander's act. Here
was ground well traversed by the State Department in its communications
with Austria over the _Ancona_; but Germany was much less pliant. The
United States insisted that not only must full indemnity be paid for the
American lives lost, but that the agreement for