Emperor Charles I. of Austria-Hungary Was Crowned King of Hungary on Dec. 30, 1916, at Budapest.
The Prince Primate of Hungary, Johann Cardinal Czernoch, Is Seen Administering the
Oath, and on the Cardinal's Left Is Count Tisza, the Hungarian Premier.

(Photo Underwood & Underwood.)

T

HE United States severed diplomatic relations with the German Empire

Feb. 3, 1917, by dismissing Count von Bernstorff, the German Ambassador, giving him his passports, and recalling James W. Gerard, the American Ambassador at Berlin. This action was taken in consequence of a notice issued to the United States and all neutral countries by Germany on Jan. 31, 1917, announcing that, beginning on Feb. 1-the following day-merchant ships bound to or from allied ports would be sunk without warning. The notice stated that a prohibited zone" had been mapped out by Germany, bordering Holland, England, and France, and including portions of the Mediterranean. In these areas of the high seas any vessels of any nation from any port would be sunk without warning by German submarines. In the note to the United States a "safety zone" consisting of a narrow lane leading to Falmouth, England, was designated, through which one American vessel a week, carrying passengers only, would be

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permitted to proceed unmolested; provided, however, that there were no contraband aboard, and that the vessel be striped and conspicuously marked with colors according to a design outlined by the German Admiralty.

The notice from the German Empire burst upon the nations with startling suddenness at the moment when the Chancelleries of the world were expecting further moves by President Wilson to bring about a conference of the belligerents which might lead to peace. It produced a prodigious sensation and was recognized everywhere as the most momentous development since the initial declarations of war thirty months before; also as indicating that the struggle was entering a new epoch of frightfulness. Moreover, while it denoted in the judgment of many sound observers the final phases of the world conflict, the duration of which no one could yet foresee, a fear was entertained by many that before the end practically all the nations of earth would become involved in hostilities.

FOL

OLLOWING is the full text of the German submarine note handed to Secretary of State Lansing by the German Ambassador on Jan. 31, 1917, at 4 o'clock P. M.:

Washington, D. C., Jan. 31, 1917. Mr. Secretary of State:

Your Excellency was good enough to transmit to the Imperial Government a copy of the message which the President of the United States of America addressed to the Senate on the 22d inst. The Imperial Government has given it the earnest consideration which the President's statements deserve, inspired, as they are, by a deep sentiment of responsibility.

It is highly gratifying to the Imperial Government to ascertain that the main tendencies of this important statement correspond largely to the desires and principles professed by Germany. These principles especially include self-government and equality of rights for all nations. Germany would be sincerely glad if, in recognition of this principle, countries like Ireland and India, which do not enjoy the benefits of political independence, should now obtain their freedom.

The German people also repudiate all alliances which serve to force the countries into a competition for might and to involve them in a net of selfish intrigues. On the other hand, Germany will gladly co-operate in all efforts to prevent future wars.