File No. 763.72/2390

The Ambassador in Germany (Gerard) to the Secretary of State

[Telegram]

3458. Berlin press prints following interview given by Undersecretary of State for Foreign Affairs to Associated Press:

The Secretary expressed the hope that the new proposals already submitted to the United States would furnish the basis for a settlement. But he did not want to conceal seriousness of the situation. He said that Germany could not make any further concessions and would not ever acknowledge illegality of submarine operations in war zone. The German Government was ready to do everything in its power to meet the wishes of America and had already done this, but there were limits before which even friendship had to halt. He declared that he did not understand America’s attitude. Bernstorff had thought that the differences on the submarine question were settled and the Lusitania case would be adjusted. Germany had consented to pay an indemnity but the Government of the United States had made absolutely new demands with which German Government could not possibly comply. America must not demand too much and try to humiliate German Government. He was unwilling to discuss these new demands or the instructions sent the Washington Ambassador, but he left no doubt that the whole crisis was attributable to America’s demands that Germany should disavow the sinking of the Lusitania as an illegal act. Germany could not surrender the submarine weapon. He repeated that if the United States wanted a break, Germany could do nothing more to avoid it. The most deplorable part of the whole matter was that there was no real reason for a break. Germany and the United States had no conflicting interests. Germany even hoped for considerably increased trade between the two countries after the war. This hope would be shattered if it came to a break now, or developments in the desired direction would at any rate be greatly impeded, but Germany could not go any farther than she had already gone.

Gerard