UNITED STATES.

Taranaki Daily News, 28 April 1916, Page 5

UNITED STATES.

OFFICIAL CIRCLES HOPEFUL. Times and Sydney Sun Services. London, April 26. The Times' correspondent at New York says that official circles are distinctly hopeful about the outcome jf the German-American crisis. Reports from Berlin are breathing a submissive spirit owing to the fear of American economic pressure. - 1 A CHANGE OF TUNE.

ABOUT ARMED MERCHANTMEN. Washington, April 26. The State Department, in defining the American attitude on armed merchantmen, has issued a statement upnolding the right of merchant ships to arm for protection only, but declaring that merchantmen vhich have used their armaments for aggressive purposes are not entitled to the same hospitality in neutral ports as peaceably-armed merchantmen. ' The United States thus abandons her previous attitude on the armed merchantmen question. THE ALLIES' REPLY. TO AN AMERICAN PROTEST. Washington, April 28. The British reply to the American protest at the interference of the Allies with neutral trade, contends that the practices are judicially sound'and valid. | The relief neutrals .seek will be obtained by the mitigation of necessary hardships rather than by an abrupt change in the theory and application of the policy, which is based on the admitted principles of international law, carefully adjusted and altered to meet the conditions of modern warfare. An impartial and influential commission has been appointed to find ways to mini- } oiise the delays.

The Note pledges the Allies to make the restraint of trade as little burdensome to neutrals as possible.

KAISER ACTIVE* . TO A BREACH. -■ Washington, "April 26. Unofficial advices received here from Berlin assert that the Kaiser is endeavoring to arrange a modus Vivendi to prevent a breach with the United States over the submarine controversy. A settlement is believed to be likely, in view of Count Bernstorff's activity. A REPORTED CONFERENCE. TO SOLVE THE PROBLEM. Received April 27, 11.25 p.m. Amsterdam, April 27. The Frankfurter Zeitung declares that Mr. Gerard had a long conference witli Herr von Bethinann Hollweg, and that this indicates that the most serious efforts are being made to find a solution of the difficulty.