Germany is ready, finally, to deliberate with the United States
concerning any measures which might secure the safety of legitimate
shipping of neutrals in the war zone. Germany cannot, however, forbear
to point out that all its efforts in this direction may be rendered very
difficult by two circumstances: First, the misuse of neutral flags by
British merchant vessels, which is indubitably known to the United
States; second, the contraband trade already mentioned, especially in
war materials, on neutral vessels.

Regarding the latter point, Germany would fain hope that the United
States, after further consideration, will come to a conclusion
corresponding to the spirit of real neutrality. Regarding the first
point, the secret order of the British Admiralty, recommending to
British merchant ships the use of neutral flags, has been communicated
by Germany to the United States and confirmed by communication with the
British Foreign Office, which designates this procedure as entirely
unobjectionable and in accordance with British law. British merchant
shipping immediately followed this advice, as doubtless is known to the
American Government from the incidents of the Lusitania and the Laertes.

Moreover, the British Government has supplied arms to British merchant
ships and instructed them forcibly to resist German submarines. In these
circumstances, it would be very difficult for submarines to recognize
neutral merchant ships, for search in most cases cannot be undertaken,
seeing that in the case of a disguised British ship from which an attack
may be expected the searching party and the submarine would be exposed
to destruction.

Great Britain, then, was in a position to make the German measures
illusory if the British merchant fleet persisted in the misuse of