GRAVE CRISIS IN GERMANY.

North Otago Times, Volume CV, Issue 30938, 23 July 1917, Page 6

GRAVE CRISIS IN GERMANY.

..... NEW CHANCELLOR jib., THE.MOT® - •I »' «.t' ■ i ■ K-.is 1 - VJ". DE MICHAELIS RECEIVES Alf OVATION. " .1 .INTERNAL POLICY' BASED ON KAISER'S. DECLARATION. . ~.. ' RUTHLESS SUBMARINING FAVOUREI)., | t i , i ""V (Australian and New Zealand Cable Association.) AMSTERDAM, July 20. The Reichstag was crowded. ■ : ■ l)r Michaelis received an ovation. 1 He said the subiiiaiinea were doing all that was expected, though the hasty prediction that they would end the war'by a certain date had caused disappointment. Germany, lie said, does not want anf violent increase' of power. If she can, obtain an honourable . peace she will noi. continue the war any longer, but will' not negotiate Ayliile- tlie enemy demands portions of her territory. 'She must obtain guaiantees concerning Germany's overseas interests, and also liei economic freedom. The Government, supported by the people, the army, and the army leaders, had decided that if the enemy abandoned their plans of conquest and honestly wished.to. negoti- , ate I'or peace, it would hoar what they had to say; ■ 1 lie last months had been hard on Germany owing to tlio shortage of food, but lie hoped she would feel an early improvement.. Referring to Germany's internal policy, the Chancellor said it would.be based on the Kaiser's declaration of July 11th; •

SOCIALISTS' OPPOSITION.. PEACE RESOLUTION CARRIED BY SUBSTANTIALMAJORITY. J (Australian end New Zeahni Cable Association.) ' ;. . AMSTERDAM, July 20. , llerr Scheidemann declared against the submarining policy l which, he said, had done wore harm than good, expressed dsisatisfaction at the vagueness of the references to internal reform, and demanded Herr Leibkne'cht's release. A peace lvsoiiitioiuvas carried by 214 to 117. ■ (Router's Telegrams.) AMSTERDAM, July 20, In the Reichstag, j)r Moeliielis, referring to the Russian offensin;;said: General Brusiloff's goal was Lehiberg and to oil wells near Draholiycz, in order to.itn.paii' our sublharnie war chaff. An 'hour ago I received the following message: Marshal von Hin- ■ .deiiburg.was the Russian offensive in Galieia,aiid a stron of attack was inaugurated ■there to-diijyby, and under the per- .- imi.il leadeislnp ol Finite Leopold ot B.naiia, i (.suiting m the Aiistii.iiiOeinians bieaking thiougli the Russian position near Zlap/ow Geneial Brusiloff's gams nerc tkieioic equalised. (Australian and New Zealand' Cable Association,) Rauud Tulj 22, ,it fi '> pin , AMSTERDAM, July 21. Re])oits Floui Beilm stall that Dr Michaclis's speech cieated an unsatislactoiv impression, and pleased neither side'. The fact that the House passed a resolution, although Dr Micliaelis'dul approve of 11, is a sign of want of confidence, evoked bv diploinatio speech. ])r Michaelis kid out the indue favoured peace by cotiojh.ition, A\hich is believed to possibility of neutral mediation, J ,