File No. 763.72/11918

The Vice Consul at Zurich ( McNally) to the Secretary of State

[Telegram]

Am able to confirm my former telegraphic information concerning the action of the German Admiralty in ordering submarine commanders [Page 395]to discontinue operations. The German Government has requested the Admiralty to recall all submarines, pending their peace efforts. The Admiralty strenuously opposed at first sending out such orders, compromising on the instructions to their commanders to discontinue the attacks on passenger ships, but later agreed to the recall if the same was not publicly announced as it would tend to kill the morale of the Navy if known.

Ludendorff says he will hold the line from Antwerp to Liege and the Meuse River territory and that he will now thicken the resistance in other sections. Solf is for peace at any price but the Chancellor believes that it is not necessary that the Kaiser abdicate and claims to have heard from sources in the Government that the President of the United States does not insist upon abdication. The Pan-Germans are building up a national defense party in Germany who will be sworn to die in defense of the Empire. The people are opposed to a continuation of the war and speak openly of the necessity for the abdication of the Kaiser which is opposed by the military leaders who see their prestige die with the abdication. Ludendorff has promised to make a successful resistance until the sentiment for the total extinction of Germany changes in France.

[ McNally]