GERMANY AND AMERICA.

Otago Daily Times, Issue 16890, 30 December 1916, Page 7

GERMANY AND AMERICA.

SERIOUS CRISIS PROBABLE.

Australian and N.Z Cabin Association WASHINGTON, December 29. (Received Dec. 30, at 1.35 a.m.) Tho peaco negotiations aro exciting tho closest interest. President Wilson is having daily consultations with Mr Lansing. Ollicials assert that complete failure of the negotiations will bo followed by a most serious crisis 'with Germany oil tho submarine issue.

ALLEGED AGENT FOR GERMANY

FORMER FRENCH PREMIER.

Australian Rud N Z. Cable Association ROME, December 29.

(Received Dec. 2-9, at 11.30 p.m.) M. Caillaux recently visited Rome. It is believed that he came as a peaco missionary, stating that Germany was prepared to treat France liberally and grant Italy almost the whole of her ambitions at Austria's expense, Germany recouping her own war sacrifices in tho East and the Balkans.

M. Caillaux met with several rebuffs, including the Vatican, where he failed t-o obtain a papal audience. It is reported that the Italian Government was on the point of requesting M. Caillaux to depart, but he had already started. It is supposed that M. Caillaux represents certain international financiers.

|M. Caillaux for some _ years occupied a very prominent position in French politics. From 1905 to 1910. there were six Ministries, of which the last was held by M. Caillaux, who fell next year owing to his conduct of the crisis with Germany over Moroccan affairs. He, however, continued a disturbing factor in political matters, and became the mainspring of the Doumergne Ministry (in 1914). which had succeeded that formed by M. Baxthou. M. Calmette, editor of Figaro, who had published some violent attacks on M. Caillaux and threatened other was shot dead by Madame Caillaux; and the husband of the latter was driven out of power owing to scandals which were brought to light through the tragedy.]

THE GUARANTEE QUESTION

GERMANY SUGGESTS "A PIECE OF

PAPER."

WASHINGTON, December 29. (Received Dec. 29, at 11.30 p.m.) The German Embassy has issued an inspired statement that if the Entente Powers consider guarantees for the future essential there might be some declaration of principles, to • which Germany would be willing to subscribe, leaving details to settlement at a conference.