File No. 763.72/2375
The Ambassador in Germany (Gerard) to the Secretary of State
[Received February 2, 1.15 p. m.]
3419. Saw Von Jagow last night at dinner at his house. He told me I would probably receive to-day a note embodying Germany’s position in Lusitania case. He said this note would differ from Bernstorff’s proposition in, as he put it, only one word. He said that Germany would admit liability the result of the sinking of the Lusitania, but would not admit that sinking was illegal. He said that the submarine was a new weapon and that international law had to be changed; that Germany would never admit that the sinking was illegal; had plenty of new submarines and would carry on an effective submarine war if a break came with America.
I think that without doubt Germany will stand by this position. I have heard lately that the influence of Von Tirpitz has been revived and that he and Von Holtzendorff have lately come together. It will, therefore, be for the United States to decide whether the expression of regret, admission of liability, promises heretofore made about method of conducting submarine warfare and payment indemnity, are not enough. My own opinion is worth nothing as I am out of touch with the United States, but I sincerely hope that we can keep out of this war, and I am convinced that a break of relations will mean war in a few months.