File No. 763.72/2834

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


4279. From many signs there are indications that Germany is contemplating a return to reckless submarine war. People like Bassermann, leader of National Liberals, and Gutmann, Director of Dresdner Bank, who formerly opposed, now favor it. There is a tendency to stir up feeling against America as a first step. I do not think this question will become acute until after our elections, and possibly not until spring, when Germany will have great number of submarine boats with trained crews. Am informed that one shipyard alone is turning out over two submarine boats per week.

Newspapers publish ridiculous statements about attitude of President and America. For instance, one paper large circulation, printing [Page 286] pleasant comments of American papers on arrival Deutschland concludes: “Only the semiofficial Evening Post keeps silent.”

Possibly entrance Roumania to-day may accentuate submarine situation.