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Show GERMANYMAKES NEW PROPOSAL Hopes to End Lusitania Controversy Con-troversy Will Pay Indemnity Indem-nity For Lost Americans. ACT OF REPRISAL No Wrong-Doing on Part of Germans Only Retaliation Retalia-tion For British Blockade. Washington, Jan. 7. Count von Bernstorff, the German ambassador, presented to Secretary Lansing today a proposal to pay indemnity for Americans lost in tho Lusitania disaster dis-aster and thereby conclude that controversy con-troversy and gave assurances that any German submarines in the Mediterranean Med-iterranean would not attack non-combatant ships of any character without warning or destroy them without opportunity op-portunity for non-combatants to reach a place of safety. While offering to pay indemnity in the Lusitania case, Germany makes the reservation that it is done without with-out admission of wrong-doing. No official of-ficial indication was given as to the acceptability of the proposal but one set of American officials took the view that it would end the controversy controver-sy The assurances regarding submarine subma-rine warfare In the Mediterranean are of broader scope than those given after aft-er the Arabic disaster, and covering the warfare in tho North sea. The latter guaranteed only the safety of liners. Those for the Mediterrean cover all non-combatant ships. The assurances regarding the conduct con-duct of submarine warfare in the Mediterranean convey the first information in-formation thnt German submarines were operating there. In excluding all ships except liners from the assurances as-surances covering submarine warfare in the North sea, the German government govern-ment was reported as considering that no Americans could possibly be aiboard ships other than liners In regular passenger-carrying service. Count Bernstorff's Plan. It has been known for some time . that Count von Bernstorff had devised de-vised a plan which he believed would I satisfactorily end tho Lusitania con- trovers'. He was understood to have submitted the proposition to the Berlin Ber-lin foreign office before Christmas. There was some delay because of adverse ad-verse sentiment created by the request re-quest for the dismissal of' the German Ger-man naval and military attaches, and the demands in the first American note to Austria-Hungary on the sinking sink-ing of the Italian liner Ancona. As for the disavowal asked by the United States, the German government govern-ment was reported as considering that the most effective form of disavowal was assurances that such acts should not be committed in the future. The assurances regarding the conduct of German submarines in the Mediterranean Mediter-ranean were understood to be nearly identical with those contained in Austria Aus-tria renly-to -the last American-note on the Ancona. Lansing Issues Statement. The following statement was later issued by Secretary Lansing: "The German ambassador today left at the department of state under instructions in-structions from his government the following communication: " '1, German submarines in the Mediterranean had, from the beginning, begin-ning, orders to conduct cruiser warfare war-fare against enemy merchant vessels only in accordance with general principles prin-ciples of international law and in particular par-ticular measures of reprisals as applied ap-plied in tho war zone around the British Brit-ish Isles were to be excluded. " '2 German submarines are therefore there-fore permitted to destroy enemy merchant mer-chant vessels in the Mediterranean i.e., passenger as well as freight ships as 'far as they do not try to escape or offer resistance only after passengers passeng-ers and crews have been, accorded safety. " '3 All cases of destruction of enemy en-emy merchant ships in tho Mediterranean Mediter-ranean in which German submarines are concerned arc made tho subject of official Investigation and besides submitted sub-mitted to regular prize court proceedings. proceed-ings. Insofar us American interests are concerned, the German government govern-ment will communicate the result to the American government. Thus, also in the Persia case, if the circumstances circumstan-ces call for it. " '4 If commanders of Gorman submarines sub-marines should not have obeyed the orders given to them, they will be punished; pun-ished; furthermore, the German government gov-ernment will make reparation for damage caused by death of or injuries to American citizens ' " Mr Lansing made -no announcement announce-ment of tho Lusitania proposals, saying say-ing the subject still was confidential. Tho Fryo note dealing with the small boat question will be made public pub-lic later. |