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Show FfiYE TO BE PAID FOR BY GERMANY Washington, Aug. 10. The American Ameri-can reply to tho last German note regarding the sinking of the American Ameri-can ship William P. Frye was cabled to Berlin tonight and probably will be given out for publication Saturday. While the original position of the state department that the Prussian-American Prussian-American treaty of 1S2S was violated by the destruction of the vessel is reaffirmed, it is understood that the United States now agrees to accept payment for the Frye under the conditions con-ditions suggested in the last German note, obviating an appeal to arbitration arbitra-tion at The Hague. Germany stipulates stipu-lates that payment shall not involve admission of a treaty violation; the American note is said to stipulate that no treaty rights are waived by acceptance. The amount to be paid will be fixed by two commissioners, one appointed by each government. The German position, as outlined In the last note. Is that payment of Indemnity for ships destroyed is all that the treaty contemplates The United States contends that any American ship, even if laden with contraband, con-traband, is protected from destruction destruc-tion by article 13 of the treaty, although al-though it is not claimed that a contraband con-traband cargo would be so protected Germany has held that since the sinking of ships is not specifically prohibited in the treaty, principles of international law must govern each case, tho treaty being satisfied by payment. The new American note is understood to reject this view. A German prize court in July held the "Berlin government liable under treaty for payment for the ship. The amount was not fixed, as the United States had entered no specific claim for damages. The note was cabled to Ambassador Penfleld, who probably will present it to the Vienna foreign office Thursday Thurs-day It may be made public later by agreement between the two governments. govern-ments. Though framed In diplomatic language lan-guage and entirely friendly in tone, the reply is understood to repudiate flatly tho suggestion that the United States has permitted 'Violations of neutrality, and to stand firmly upon the right of American exporters to send war supplies to belligerents able to purchase and receive them. The United States always has held that this is an unquestioned right under un-der International law. and high of-licials of-licials have pointed out that to prevent pre-vent such shipments to one country because another was not in a position posi-tion to receive them would, In itself, be a violation of neutrality. Prece- dents also havo been recalled where in previous wars Germany and Austria Aus-tria imported arms extensively. The Austro-Hungarian note, handed hand-ed to Ambassador Penfleld on June 29, was a lengthy document, setting forth the views of that government and suggesting that the United States might redress the state of things complained com-plained of by informing the officials of Austria-Hungary that the supply of foodstuffs and war material to them would be suspended unless legitimate legi-timate trade in these articles between be-tween Americans and neutral countries coun-tries was permitted. According to Berlin dispatches this complaint was sent after a conference confer-ence between tho Austro-Hungarian and German foreign offices. Similar notes It was said, soon would be sent to tho United States by Germany Ger-many and Turkey. Washington, Aug. 10. The American Amer-ican steamer Llama, ono of two Standard Stan-dard Oil ships taken by German submarines sub-marines to Swlnemunde, was released on August 6, according to a dispatch to the state department today from Ambassador Gerard at Berlin. The dispatch does not say whether the Llama's cargo of petroleum was detained de-tained and makes no mention of the steamer Wlco. taken with her. oo |