"In reply to report A. 350 of the 13th inst.
"Mediation by the President intended lead to the opening of peace negotiations between the combatants we are gladly ready to accept. Please encourage emphatically the President's efforts in this direction. Naturally it must not be imagined that in accepting such mediation we bind ourselves to any concrete peace conditions. A general peace conference with participation of neutrals only tolerable on the lines of previous successful peace-negotiations between combatants with regard to general and international questions of Freedom of the Seas and Disarmament.
In close connection with the above exchange of letters with Berlin, stood an interchange of telegrams dealing with the eventual reopening of the unrestricted submarine campaign. I received the following telegrams:
"The Army and Navy are again urging submarine warfare as the only weapon against England, and particularly against her blockade, to which President Wilson has never, nor can very well, take exception.
"1. Whether after his nomination Wilson would still be prepared to press matters as far as a rupture and war, even if we spare human life in the new submarine war?
"2. What attitude the Republican candidate would adopt on this matter?
"Public opinion in England is opposed to mediation by Wilson, which is also not wanted on principle here, because too unpopular.
I dispatched as quickly as possible to Berlin the following telegram:
"Assuming that it is intended that the resumption of the submarine campaign be accompanied by the official or clandestine withdrawal of the concessions granted in our Note of the 4th May, such a withdrawal or modification of our concessions would in my opinion lead to a rupture and America's entry into the war. By condoning such a move Wilson would forfeit all hope of being re-elected and Hughes, who is already suspected of being the German candidate, could not afford to recommend a surrender. With regard to mediation and blockade I am in constant communication with House. The former to be expected in course of summer, for election reasons; probably Wilson will inform our enemies that he will have to resort to sharp measures if peace is not attained."