File No. 611.627/146.

The Secretary of State to the American Ambassador.

[Telegram—Paraphrase.]

The Department authorizes you to confer with the chancellor, but does not wish the matter to be presented in the form of an appeal or with undue concessions. Present it with discretion and reserve, maintaining the dignity of this Government and its firm attitude throughout this transaction. This explicit caution has particular reference on the one hand to the consideration that this Government, by its intimation through you of the state of the law under our trust statutes, did not intend to convey a mere threat; and on the other hand to the consideration that this Government can not undertake to control appropriate proceedings by the Attorney General which further development of the facts may render strictly necessary under our laws.

Knox.