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Show IMS PISSES; SETTLEiBT IS , Ml SIGHT Issues Between This Government Gov-ernment and Germany and Austria Take a More Favorable Turn. v MATTER IS NOW IN HANDS OF WILSON Count Bernstorff Calls on Lansing and Leaves Memorandum Mem-orandum as to Ger- many's Position. By International News Service. WASHINGTON, Jan. 7. Important developments today in the international affairs of the United States were interpreted inter-preted by officials as indicating that the general situation is rapid!' improving. improv-ing. Ihe prevailing opinion tonight is that the pending issues between this government gov-ernment and Germany and Austria will be settled quickly and satisfactorily. Today's developments were: 1. The Gorman government notified Count vod BernstortT, the German embassador, em-bassador, that it approves the form of sett lenient of the Lusitania controversy which he has been negotiating with Secretary of State Lansing. The planr of settlement is now in President Wilson's Wil-son's hands for his decision. An agreement agree-ment may be announced in the next forty eight hours. (.'on nt. von Bernstorff called on Secretary Lansing and left with him a memorandum to the effect that Germany Ger-many has instructed all her submarine commanders operating in the Heditcr-nucan Heditcr-nucan to observe the rules of international interna-tional law. 3. This was taken to mean that if it v is proved that a German submarine sank the .JVrsia, Germany will disavow the act, puui-di the submarine commander and pay indemnity for the American lives lost. Reparation Promised. 1. ..Embassador I 'en fie Id cabled from Vienna that the Austrian foreign office had told him it has no information on the sinking of the Persia. The state depart iflrnt already had received assurances assur-ances from tho Austrian embassy that if an Austrian submarine bad sunk the vessel, in violation of instructions, satisfactory sat-isfactory reparation would be given. 5. President Wiison and the cabinet discussed at length the new problems of submarine warfare with a view to securing an international agreement, nor only as to tiie rights and duties of Hiilmiarines, but as to the rights and limitations of merchant vessels to carry W ins. The announcement of progress in the Lusitania case was regarded as the most satisfactory incident of the day. Count on ilernslorll especially was extremely optimistic over the likelihood of an early settlement. 11 o indicated 'that everything has been cleared up except the amount of indemnity which German v will pay for the Americans lost on the vessel. . t v It can bo stated authoritativclv that the plun of settlement does not include a disavowal by Germarfv of the act of the ti bin h ri n e commander in sinking the busitania. It is assumed that this indicates in-dicates tlmt, ihe United Slates has given in on this point and had accepted Germany's Ger-many's emphatic representations that it cannot disavow an act which was committed com-mitted in accordance with general in-Mnielions. in-Mnielions. Instead of a'disavowal. Germany, Ger-many, it is believed, has reiterated her V expressions of regret and has informed thi government of. its willingness to pay indemnity, on the ground that the legality of the sinking of the Lusitania open lo question and discussion. Re.nslorffs Communication. Count von BeriistorlV's communication in lull follows: Herman submarines in the Mediterranean Mediter-ranean had from the beginning orders to coin I ucl cruiser warfare against ercniy merchant men onlv in aei-ord-:it'-.' wuli general principles of International Inter-national In w, and in particular m- a-ures a-ures oi reprisal, as applied in the war znii o mound t lie British isles, were to be vNeluded. ;'-nn:ui Mibniariiics are therefore p- minted to iloMix.y enetnv mon-hant .s--ls in the Mediterranean, i, P pa.-i'!)KPv as well us freight siilpp, as i.ir as thry do not iry to escape or oil. r resistant,., onty ;iltl,r pass,,n. l-ms .Hi, crews have been accorded Alt ca.-e.s of destruction of enemv t;notc'icnl ships in the Mediterranean in which (,i.-nnan submarines are i-ou-cerucl. lire made the suM-ci of offi-i offi-i ial iiiiormation. and. besides, submitted submit-ted to reyular .prize court proceedings. proceed-ings. In so Jar as A mertean inter-esis inter-esis aie concerned, the German guv-vi guv-vi iii'.iunl w ill communicate the re-$ re-$ suits to the American gnvrrunieht llius also in the Persia case if the circumsianees should call for' It. If conimanders of Cor in an submarines should not have obeyed the orders si von to them thev will ho punished-I'urthci punished-I'urthci more, the German uoveri'mtnt will make reparation for damage causal by death of, or injurv- to Ainericnn citizens. Cabinet Meeting. ?T'resident Wilson and his cabinet dl---ssed at length today the new problems - of si imnari no wa; fare, point iin. it is understock toward makinc the stand laUen bv this jcovern tnont known cleat Iv PiHi dciinilely to nil the belligerents. It Is ivaltzed that the only way of prevent-i prevent-i ia a flood of notes and special diseus-.4nns diseus-.4nns is to secure pome sort of a binding international au-reemcm vhmh will rover not on t the riuiits of submarines as a new factor in war making, but also 'i e t rights and limitations of merchant es-sHs es-sHs carry! up armament. International lehit'ons have rea-'hed sueh a staue of coni'sy ity. due to the manv new laeiors in tiit present war, tiiat a new u. cement. i is necessary for all concerned, and it is j i his Mt-ril that now is occupying the minds I of statesmen and diplomats. ! T)h- I 'ei-sia case was considered only I briefly at today's niceiin. And the con- sid era t ion it received as more in the ; nature of it helim an obj-t lesson on the vital need of a general declaration rather j than thai of an acute .situation. j It was clearly defined today in The highest official circles that t lie Persia . ease is. rapidly drifting into the class of1 tlie Hesperian, which was not strong enouph, even on circumstantial evidence, to wa rra ni making an issue of it with Germany. It is practically impossible, it is said, to view- the Persia case intelligently from any anle bpf-ause of the absolute lack of any information. This government's hands are complete- ; ly tied pnd will remain so until it is possible io get details. White House Attitude. The official attitude on the Persia matter mat-ter was us follows: ; "We have not Inner from Berlin. We ; have heard from Vienna, but nothing is known of it there. We have made inquiries in-quiries at Alexandria, at Cairo, at Malta, at Maiseilles and at London and the sum i total of our information to l'ar is notli-1 notli-1 ins:." It is one of the peculiar features of the case that the British foreifn office may develop into the chief source of Information Informa-tion in the matter. Embassador Pae was Given the same instructions as Embassador Embas-sador Penfield and consular agents and he is believed to be now trying to get the viewpoint of the British office on the affa ir. Belief was expressed in official circles that Great Britain may eventually prove to possess the key ro the whole matter, especially as regards the service and armament of the Persia, which are all important factors. Today's developments proved ons thing conclusively there Is no crisis, nor is there much likelihood of being one as long as the United States government is unable to get any information on the matter. A nd tonight that Information was generally viewed as being a long way off. |