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Show ARABIC CASE IS TO BE SETTLED German Government Will Make Reparation to United States. Berlin, Aug. 26, via London, 11 a. m. The Associated Press is in a position posi-tion to state, on the best authority, that the Arabic incident may be considered con-sidered as eliminated as a source of discord between Germany and America; Ameri-ca; or at least is regarded by the German government In that light. Moreover, Germany, in its deslro to continue its relations with the United States, had adopted, before the sinking sink-ing of the Arabic, a policy designed to settle completely the whole submarine sub-marine problem as affecting America, on me oasis ol good will and mutual understanding. This is shown clearly by the statement state-ment of Chancellor von" Bethmann-Hollweg Bethmann-Hollweg last night to The Associated Press, particularly by his concluding remark to the effect that, not until ail tho circumstances in connection with the sinking of tho Arabic had been cleared up, would It bo possible to say "whether the commander of one of our submarines went beyond his instruction," In which case Germany Ger-many would give complete satisfaction to the United States. Furthermore, during the conversation the chancellor chancel-lor twice again referred to the instructions in-structions given to submarine com-. manders. He did not specify in detail tho nature of these Instructions but It may be said that they arc designed to prevent a repetition of the Lusltanla case and to provide tho opportunity for escape for American non-combatants upon torpedoed ships which the United States desires. Having given these instructions, Germany asked suspension of judgment judg-ment on the Arabic case until the facts were ascertained, being confident, confi-dent, It will be shown, that the sinking sink-ing of tho vessel was not an unprovoked unpro-voked attack without warning by a German submarine, but was attributable attribut-able either to a mine explosion or to some action of the vessel Itself. Should It dovclop, howevor, that a submarine acted contrary to instructions, instruc-tions, ample reparation will be offered. of-fered. Germany still b unable to understand under-stand why Americans, in these trou- : bled times, travel on belligerent ships instead of taking American or other neutral steamers, but since they in some Instances Insist upon taking passage on vessels belonging to belligerents, bel-ligerents, Germany will do its utmost to provide for their sarety. It is not permissible to quote remarks re-marks made by the chancellor In the course of the conversation other than the formal statement which ho made. It may be said, however, that Dr. von Bethmann-Holloweg showed genuine interest in the state of feeling feel-ing in the United States concerning the sinking of tho Arabic and expressed ex-pressed the hope that the American people would not form an opinion on the basis of conflicting statements giving only one side of the story. He spoke with emphasis of Germany's desire to maintain the friendship of America The chancellor appeared to be In good health and spirits and greatly encouraged by the successes achieved by the Germans In the eastern campaign. cam-paign. The interview necessarily was of short duration, as the chancellor was hurrying away for a conference with Emperor William at his field headquarters. |