File No. 763.72/2681

The Ambassador in Austria-Hungary (Penfield) to the Secretary of State

[Telegram]

1256. Opinion from unofficial but well-informed sources here is that Germany’s conduct hereafter of submarine warfare will be contingent upon United States Government obtaining concessions from Entente powers in matter of present blockade status. Should this not be obtained, it is believed Germany’s intention to continue indiscriminate destruction of ships by submarine regardless of kind, as higher command is convinced this is only means of bringing England to submission. Aerial raids are admitted [to] have no strategic value but, according to German opinion, tend to demoralize the morale of the British people.

Penfield