THE CRISIS.

Waipawa Mail, Volume XXXVI, Issue 7717, 6 May 1916, Page 3

THE CRISIS.

BETWEEN AMERICA AND GERMANY. WALL STREET BREAK FEARED. (Received This Day, 9 a.ra.) WASHINGTON, May 5. The German reply to the American Note offers to restrict submarine warfare within the limits the United States demands if the United States will compel Britain to abide by the dictates of international law. The stock markets of New York are demoralised, as it is believed Dr. Wilson will now be obliged to break off diplomatic relations. Unless the United States accepts Germany’s overtures regarding Britain controlling the seas, Germany announces she will reserve full liberty of action on the seas. NEW YORK, May 5. The German Note (piotes a new order to the German naval forces, instructing otlicers to observe the principle of visit and search of merchant vessels, both within and without the naval war zone. It further expects the United States to insist that Britain shall conduct the blockade in accordance with the rights of neutral shipping, failing which Germany reserves “complete liberty of decision.” MORE PROMISES. SUSSEX OUTRAGE ADMITTED. WILL NOT OCCUR AGAIN. (Received This Day 11 a.m.) WASHINGTON, May 6. The German reply to the American Note is one of the longest documents of tfie war. Germany still insists on treating armed merchantmen as cruisers, and reiterates its pledges for the safety of Americans. It admits the attack on the Sussex, and promises that it will not occur again. It recalls Britain’s alleged failure to answer various American protests concerning the British blockade. A BREAK UNLIKELY. WILL ACCEPT GERMAN ASSURANCES. THE SAME OLD STORY. (Received This Day, 1 pan.) WASHINGTON, May 6. Several members of the Cabinet have expressed the opinion that the United States will probably accept German assurances for the future, and will not break off diplomatic relations unless there, are further outrages. The Cabinet will leisurely consider action, and not decide for at least a week. The Stock Exchange completely recovered on this news.