File No. 763.72/10525
The Minister in Switzerland ( Stovall) to the Secretary of State
[Received June 28, 8 a.m.]
3774. Call attention to my despatch 3519 of June 17.1 Herron has now been informed by Muehlon that De Fiori is one of Ludendorff’s most intelligent agents. He can travel freely and cross frontier without visé of German Government. Muehlon says De Fiori is first of series of agents which Ludendorff will send, among them very prominent men, to prepare the way for a conciliatory peace in case offensive in France not successful. Ludendorff recognizes tendency in Germany towards peace and that tendency will be beyond control if offensive fails. He is therefore taking precautions. Muehlon urges that no word be said which can give them any expectation of coming to an arrangement other than through peace of absolute redress. He adds if America holds firm a crash is coming in Germany before many months.