hoped that these facts would enable the neutral Governments to obtain the disarmament of the merchant ships of her opponents. The latter, however, continued with great energy to arm their merchantmen with guns.

SHIELDED BY AMERICANS.

The principle of the United States Government not to keep their citizens off belligerent merchant ships has been used by Great Britain and her allies to arm merchant ships for offensive purposes. Under these circumstances merchantmen can easily destroy submarines, and if their attack fails still consider themselves in safety by the presence of American citizens aboard.

The order to use arms on British merchantmen was supplemented by instructions to the masters of such ships to hoist false flags and to ram U boats. Reports on payments of premiums and bestowals of decorations to successful masters of merchantmen show the effects of these orders. England's allies have adopted this position.

SITUATION CONFRONTING GERMANY.

Now Germany is facing the following facts:

(a) A blockade contrary to international law (compare American note to England of Nov. 5, 1915) has for one year been keeping neutral trade from German ports and is making German exports impossible.

(b) For 18 months, through the extending of contraband provisions in violation of international law (compare American note to England of Nov. 5, 1915) the over-seas trade of neighboring neutral countries, so far as Germany is concerned, has been hampered.

(c) The interception of mails in violation of international law (compare American memorandum to England of Jan. 10, 1916) is meant to stop any intercourse of Germany with foreign countries.

ATTEMPT TO STARVE NATION.

(d) England, by systematically and increasingly oppressing neutral countries, following the principle of "might before right," has prevented neutral trade on land with Germany so as to complete the blockade of the central powers, intended to starve their civil population.

(e) Germans met by our enemies on the high seas are deprived of their liberty, no matter whether they are combatants or noncombatants.

(f) Our enemies have armed their merchant vessels for offensive purposes, theoretically making it impossible to use our U-boats according to the principles set forth in the London declaration (compare American memorandum of Feb. 8, 1916).

TRADE CUT OFF BY BRITAIN.

The English White Book of January 5, 1916, on the restriction of German trade, boasts that by British measures Germany's export trade has been stopped almost entirely, whilst her imports are subject to England's will.

84610-H. Doc. 2111, 64-2, pt. 1—7

The Imperial Government feels confident that the people of the United States, remembering the friendly realtions that for the last hundred years have existed between the two nations, will, in spite of the difficulties put into the way by our enemies, appreciate the German viewpoint as laid down above.

The German text of instructions to her submarine captains, issued February 10, was as follows:

NOTE VERBALE.

FOREIGN OFFICE, Berlin, February 10, 1916.

The foreign office has the honor to transmit herewith to the embassy of the United States of America three copies of a memorandum of the Imperial German Government on the treatment of armed merchantmen, with inclosures, and to request that the embassy be good enough to bring the essential contents of the memorandum to the members of its Government by telegraph, stating at the time that the order to the German naval forces mentioned in Section IV, No. 1, of the memorandum will not be carried into effect until the 29th instant, in the interest of neutrals already on board armed merchant vessels. Memorandum of the Imperial German Government upon the treatment of armed merchantmen:

I. Even before the outbreak of the present war the British Government had given English shipping companies the opportunity to arm their merchant vessels with guns. On March 26, 1913, Winston Churchill, then First Lord of the Admiralty, made the declaration in the British Parliament (Exhibit 1) that the Admiralty had called upon the shipowners to arm a number of first-class liners for protection against danger menaced in certain cases by fast auxiliary cruisers of others powers; the liners were not, however, to assume the character of auxiliary cruisers themselves. The Government desired to place at the disposal of the shipowners the necessary guns, sufficient ammunition, and suitable personnel for the training of the

gun crews.

II. The English shipowners have readily responded to the call of the Admiralty. Thus Sir Owen Phillipps, president of the Royal Mail Steam Packet Co., was able to inform the stockholders of his company in May, 1913, that the larger steamers of the company were equipped with guns; furthermore, the British Admiralty published in January, 1914, a list, according to which 29 steamers of various English lines carried guns aft. For example, the crew are not to wear uniforms in neutral ports and thus plainly belong to the British Navy. Above all, it is shown by the instructions that these armed vessels are not to await any action of maritime war on the part of the German submarines, but are to attack them forthwith. In this respect the following regulations are particularly instructive: (a) The instructions for guidance in the use, care, and maintenance of armament in defensively armed merchant ships, Exhibits 5 and 6, provide in the section headed "Action," in paragraph 4: "It is not advisable to open fire at a range greater than 800 yards unless the enemy has already opened fire. From this it is the duty of the

merchantman in principle to open fire without regard to the attitude of the submarine.

(b) The instructions regarding submarines applicable to vessels carrying a defensive armament, Exhibits 9 and 10, prescribed under No. 3: If a submarine is obviously pursuing a ship by day and it is evident to the master that she has hostile intentions, the ship pursued should open fire in self-defense, notwithstanding the submarine may not have committed a definite hostile act, such as firing a gun or torpedo." From this also the mere appearance of a submarine in the wake of a merchantman affords sufficient occasion for an armed attack.

In all these orders, which do not apply merely to the zone of maritime war around England, but are unrestricted as regards their validity, see Exhibit 12 for the Mediterranean, the greatest emphasis is laid on secrecy, plainly in order that the action of merchantmen, in absolute contradiction of international law and the British assurances, Exhibit 2, might remain concealed from the enemy as well as the neutrals.

III. It is thus made plain that the armed English merchantmen have official instructions to attack the German submarines treacherously wherever they come near them; that is to say, orders to conduct relentless warfare against them. Since England's rules of maritime war are adopted by her allies without question, the proof must be taken as demonstrated in request of the armed merchantmen of the other enemy countries also.

IV. In the circumstances set forth above enemy merchantmen armed with guns no longer have any right to be considered as peaceable vessels of commerce. Therefore the German naval forces will receive orders within a short period, paying consideration to the interests of the neutrals, to treat such vessels as belligerents.

The German Government brings this status of affairs to the knowledge of the neutral powers in order that they may warn their nationals against continuing to intrust their persons or property to armed merchantmen of the powers at war with the German Empire.

APPENDICES TO THE NOTE.

The so-called appendices to the note verbale, above quoted, embrace 12 exhibits, the most interesting of which are what purport to be the secret and confidential orders issued by the British Admiralty to British merchantmen. Germany's note points out that on March 26, 1913, Winston Churchill, then First Lord of the British Admiralty, called on British shipowners to arm a number of first-class liners for defense. Churchill's statement is the first exhibit submitted by the German Government, as follows:

EXHIBIT 1.

Declaration of the First Lord of the Admiralty, Winston Churchill, at the session of the British lower house of March 26, 1913. Parliamentary debates, official report, third session of the Thirtieth Parliament, House of Commons, 1913 (Bd., 1 S., 1775 Bis., 1776):

"I turn to one aspect of trade protection which requires special reference. It was made clear at the second Hague conference and the

London conference that certain of the great powers have reserved to themselves the right to convert merchant steamers into cruisers, not merely in national harbors but, if necessary, on the high seas. There is now good reason to believe that a considerable number of foreign merchant steamers may be rapidly converted into armed ships by the mounting of guns. The sea-borne trade of the world follows well-marked routes, upon nearly all of which the tonnage of the British mercantile marine largely predominates. Our food-carrying liners and vessels carrying raw material, following these trade routes, would, in certain contingencies, meet foreign vessels armed and equipped in the manner desirable. If the British ships had no armament, they would be at the mercy of any foreign liner carrying one effective gun and a few rounds of ammunition. It would be obviously absurd to meet the contingency of considerable numbers of foreign armed merchant cruisers on the high seas by building an equal number of cruisers. That would expose this country to an expenditure of money to meet a particular danger altogether disproportionate to the expense caused to any foreign power in creating that danger. Hostile cruisers, wherever they are found, will be covered and met by British ships of war, but the proper reply to an armed merchantman is another merchantman armed in her own defense.

"This is the position to which the Admiralty have felt it necessary to draw the attention of leading shipowners. We have felt justified in pointing out to them the danger to life and property which would be incurred if their vessels were totally incapable of offering any defense to an attack. The shipowners have responded to the Admiralty invitation with cordiality, and substantial progress has been made in the direction of meeting it by preparing a defensive measure to equip a number of first-class British liners to repel the attack of armed foreign merchant cruisers.

"Although these vessels have, of course, a wholly different status from that of the regularly commissioned merchant cruisers, such as those we obtain under the Cunard agreement, the Admiralty have felt that the greater part of the cost of necessary equipment should not fall upon the owners, and we have decided, therefore, to lend the necessary guns, to supply ammunition, and to provide for the training of members of the ship's company to form the gun crews. The owners on their part are paying the cost of the necessary structural conversion, which is not great. The British mercantile marine, will, of course, have the protection of the Royal Navy under all possible circumstances, but it is obviously impossible to guarantee individual vessels from attack when they are scattered on their voyages all over the world. No one can pretend to view these measures without regret or without hoping that the period of retrogression all over the world, which has rendered them necessary, may be succeeded by days of broader international confidence and agreement than those through which we are now passing."

Exhibit No. 2 is the text of the note delivered August 25, 1914, by Sir Cecil Spring-Rice, British ambassador at Washington, to the State Department, in which he gave fullest assurances that British merchant vessels "will never be used for purposes of attack; that they are merely peaceful traders armed only for defense; that they will never fire unless first fired upon; and that they will never under any circumstances attack any vessel."

Exhibit No. 3 is the text of a memorandum delivered by the German Government to Ambassador Gerard on October 15, 1914, concerning the treatment of armed merchant vessels in neutral ports.

SHIPS ATTACKED.

Exhibit No. 4 of the German appendices is a list of cases in which armed enemy merchant ships are alleged to have fired on German or Austrian submarines. It follows:

"Digest of cases in which enemy merchant ships have fired on German or Austro-Hungarian submarines.

"April 11, 1915: Unknown steamer, south North Sea, near the Nordhinder Lightship; steamer without a flag. Steamer saw periscope, opened gunfire at about 3,000 meters and turned on U (boat). Report of shells could be heard near the boat-about 15 or 20 shots. "April 28, 1915: Unknown steamer of medium size, North Sea, about 60 nautical miles northeast of the mouth of the Tyne. Steamer was sighted running onward; suddenly opened fire at about 3,000 meters without hoisting flag. On account of her head-on position it could not be seen whether she bore neutral marks. From the impact of the shots the guns were from 5 to 7 centimeters. U escaped the well-directed fire by speedily submerging.

May 29, 1915: English steamer Demerara, west entrance to the English Channel, near Quessant (Ushant Island). U chased the steamer and tried when 4,500 meters off to bring her to a halt by firing warning guns. Steamer turned off and returned the fire.

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June 3, 1915: Unknown steamer, west entrance to the English Channel, 50 nautical miles south of the Scilly Isles. U tried to bring the steamer to a halt by firing warning shots with her artillery. The steamer returned the fire with a poop gun.

"June 14, 1915: Two unknown steamers, west of the Hebrides (about 30 nautical miles off Lewis). The two steamers were running close together, at about 4,000 meters; both opened fire on U with small-caliber poop guns. Shots hit sideways very bad. Speedy submerging, running deep; so submarine attack hopeless.

"August 14, 1915: Large English steamer of the Royal Mail Line, Irish Sea. U was fired on suddenly by the steamer without provocation, from a distance of 8,000 meters. Shots fell short. No attack was attempted on the steamer.

"August 18, 1915: Unknown steamer, Bristol Channel. Tried to bring steamer to halt by gunfire; after warning. When steamer saw that U boat was waiting, she suddenly opened fire with a gun from the promenade deck.

"September 10, 1915: Unknown steamer, western Mediterranean. Steamer was challenged to show her flag. She turned away without hoisting the flag and opened fire with a 10-centimeter poop gun on the U boat, which escaped the firing by speedily submerging.

"October 7, 1915: French steamship Amiral Hametin, middle Mediterranean. U signaled the steamer to stop. She turned away and ran on a zigzag course. The U boat tried to bring the steamer to a halt by artillery fire. When about 3,000 meters distant, she returned the fire. It was some time before the steamer stopped. She was sunk later.