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Lloyd's List of December 29, 1916, which gave the following tonnage as having been completed in British wharves:

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"These figures demonstrate that England, which is the leader of the world as a freight carrier is being harmed the most." Admiral Hollweg cites these figures to show that ship construction has decreased in England and that England cannot make good ship losses by new construction.

On page 17 Rear Admiral Hollweg says:

"We are conducting to-day a war against enemy merchant vessels different from the methods of former wars only in part by ordinary warships. The chief method is by submarines based upon the fundamentals of international law as dictated by German prize court regulations. The German prize regulations were at the beginning of the war based upon the fundamental principles of the London Declaration and respected the modern endeavours of all civilised states to decrease the terrors of war. These regulations of sea laws were written to decrease the effects of the unavoidable consequences of sea warfare upon noncombatants and neutrals. As far as there have

been changes in the regulations of the London Declaration during the war, especially as far as changes in the contraband list have been extended, we Germans have religiously followed the principle set by the English of, 'an eye for an eye and a tooth for a tooth.""

On page 19 he states:

"Americans would under no circumstances, not even to-day, if they were faced by a superior sea power in war, refuse to follow this method of warfare by the ruthless use of pirate ships. May our submarine campaign be an example for them! The clever cruiser journey of U-53 off the Atlantic Coast gave them clearly to understand what this method was. Legally they cannot complain of this warfare. The other neutrals cannot complain either against such sea warfare because they have ever since the Middle Ages recognised the English method of sea warfare."

In the chapter entitled "The Opponent," on page 27 the author says:

"Before there is a discussion of our legal right to the submarine warfare a brief review of the general policies of our opponents during the war will be given. This account shall serve the purpose of fortifying the living feeling within us of our natural right and of our duty to use all weapons ruthlessly.

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THE NEW WEATHER CAPE

"If we did not know before the publication of the Entente Note [The Allies' peace reply to Germany] what we were up against, now we know. The mask fell. Now we have confirmation of the intentions to rob and conquer us which caused the individual entente nations to league together and conduct the war. The neutrals will now see the situation more clearly. For us it is war, literally to be or not to be a German nation. Never did such an appeal [The Entente Note] find such a fruitful echo in German hearts.

"I begin with England, our worst enemy."

On page 31 Admiral Hollweg speaks of the fact that at the beginning of the war many Germans, especially those in banking and business circles, felt that Germany was so indispensable to England in peace time that England would not conduct a war to "knock out" Germany. But Hollweg says the situation has now changed.

On pages 122 to 126 he justifies the ruthless submarine warfare in the following way:

"It is known that England and her allies declared at the beginning of the war that they would adhere to the Declaration of London. It is just as well known that England and the Allies changed this declaration through the Orders in Council and other lawless statements of authority until the declaration was unrecognisable and

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