File No. 763.72119/8389

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

[Telegram]

1730. Department’s 1566, 22d. I immediately entered upon the duty requested by your strictly confidential instructions and yesterday morning and this morning had lengthy discussions at my house with Minister for Foreign Affairs. Count Czernin is impressed [Page 63] with the communication verbally made to him, but feels that prohibition against “any other government” ever knowing of transaction must mean all governments apart from Austria-Hungary’s allies. With this understanding he to-day hands me this memorandum:

Austria-Hungary is always ready to end this war because she has always waged a defensive war. She, however, emphasizes the fact that she could only enter into negotiations for peace simultaneously with her allies; that she must receive the guaranty that the Monarchy will remain intact; and finally the guaranty necessary to insure the cessation of propaganda on the part of her neighbors, propaganda which led to the assassination at Sarajevo.

The proposals made by Mr. Penfield to Count Czernin as well as those which may be made in future will remain secret; at the same time Count Czernin expects that his reply will remain secret also.

I can state that Minister for Foreign Affairs is keenly desirous of peace and agrees that it must eventually come through President Wilson. Czernin’s bona fides and permanent confidence are certain. He thinks that Entente Governments are working for peace at Washington. If you can do so, please rush a telegram that may continue the negotiations. Grew was present at to-day’s conference.

Must mention that as answer to my protest against certain journals abusing America and the President, Count Czernin caused the press to cease this altogether and for weeks nothing offensive has been printed. Two important Vienna journals have more than once appeared with editorial pages really benefited.

Penfield