“OUR SITUATION IS BAD.”

Taihape Daily Times, Issue 152, 30 June 1916, Page 5

“OUR SITUATION IS BAD.”

ALLEGED STATEMENT BY GERMAN CHANCELLOR. SECRET MEETING OF GERMAN COUNCIL. •• i /.• r * - . VERY CHEERING REPORT IF TRUE. NEW YORK, June 29. The “ Paris Journal” publishes the report of a secret German council obtained from a confidential documentdrawn by two deputies who attended the meeting. Count Von Bethmann Hollweg (the Chancellor) is reported to have said: “ Our situation is bad. If everything goes well, and if the people are satisfied with small results, we can last until March 1917.” Replying to a Conservative’s demand for the resumption of unrestricted submarine operations, the Chancellor added:, “We have only twenty high sea submarines, divided into squadrons of five. One of these squadrons is always docked for repairs. The others are necessary for coast defence.” The Conservatives tuen demanded the instant building of more submarines.

Admiral Von Capelle replied: “Last year more submarines could not possibly bo built owing to the shortage of a certain metal..” The Chancellor declared : “Not a day pases but I am visited by Austro-Hun-garian and Turkish deputies, who threaten to concluae separate peace unless we cease submarine warfare. They fear that after the war the Allies and the United States will paralyse their overseas trade.”

Herr Helfferich (Finance Miniate-) remarked: “Financially we cru lajt through the war, but afterwards bankruptcy is inevitable. We have already lost billions of marks in exchange." Herr Voh Jagow said : “ Of the Powers we are hot at war with, Spam • favourable to us. The Swedish Government lias big business interests with us. Norway is hostile. Tho Danish ministry is with us, but the people of Denmark are against us. Holland is frankly against us and probably Switzerland, though not exactly among our enemies, is rather against us.” Having been angered by the Conservatives’ attitude to the submarine policy, Count Von Holhveg banged bjs list on the table and exclaimed; “.Remember, gentlemen, we have only on? means of salvation. Wo must detach France from the Allies. We must obtain the breakdown of French confidence at all costs.” Thereupon the Conservatives demanded that a great blow should be dealt at France, no matter what the sacrifice. The Chancellor pointed out that the greatest sacrifices were being made at Verdun , without overcoming tine French resistance.