When the ministers arrived at the Kaiser's headquarters, His Majesty asked each one to make a complete report on the submarine war as it affected his department. Dr. Helfferich was asked to go into the question of German finance and the relation of America to it. Dr. Solf, the Colonial Minister, who had been a very good friend of Ambassador Gerard, discussed the question of the submarine warfare from the stand-point of its relation to Germany's position as a world power. Admiral von Capelle placed before the Kaiser the figures of the number of ships sunk, their tonnage, the number of submarines operating, the number under construction and the number lost. General von Falkenhayn reported on the military situation and discussed the hypothetical question as to what effect American intervention would have upon the European war theatres.
While the conferences were going on, Dr. Heckscher and Under Secretary Zimmermann, who at that time were anxious to avoid a break with the United States, sounded Ambassador Gerard as to whether he would be willing to go to Great Headquarters to confer with the Kaiser. The Foreign Office at the same time suggested the matter to the General Staff and within a few hours Mr. Gerard was invited to go to Charleville. Before the ambassador arrived the Kaiser called all of his ministers together for a joint session and asked them to make a brief summary of their arguments. This was not a peace meeting. Not only opponents of submarine warfare but its advocates mobilised all their forces in a final attempt to win the Kaiser's approval. His Majesty, at this time, was inclined towards peace with America and was very much impressed by the arguments which the Chancellor and Dr. Helfferich presented. But, at this meeting, while Helfferich was talking and pointing to the moral effect which the ruthless torpedoing of ships was having upon neutral countries, von Falkenhayn interrupted with the succinct statement:
"Neutrals? Damn the neutrals! Win the war! Our task is to win. If we win we will have the neutrals with us; if we lose we lose."
"Falkenhayn, when you are versed in foreign affairs I'll ask you to speak," interrupted the Kaiser. "Proceed, Dr. Helfferich."