The Elk Mountain pilot., 1915-08-21
NOTE TO GERMANY
UNITED STATES ACCEPTS kAIs-
ER's INDEMNITY PROPOSAL.
Germany Asked to Explain interpreta-
tion of Existing Treaty on
Naval Warfare.
western Newspaper Union News service

Western Newspaper Union News Service
Washington, Aug. 1S.-The Ameri-
can reply to Germany's last note on
the sinking of the American sailing
ship VIM. P. Frye, made public here
by the State Department, accepts the
proposal that damages be fixed by a
mixed commission and that the dis
puted treaty provisions be submitted
to arbitration at the Hague, but calls
on Germany for a statement mean
while as to whether she intends to
conduct her future naval operations in
accordance with her Interpretation of
the Prussian-American treaty, or that
OF the United States. The note is re-
garded as putting the noted case we'll
on the way to settlement 1t is ad-
dressed by Secretary Lansing to Am
bassador Gerard at Berlin. The note,
in part, follows:
You are instructed to present the
following note to the German minister
of foreign affairs:
Under instructions from my gov
ernment | have the honor to inform
your excellency in reply to your note
of July 30 in regard to the claim for
reparation for the sinking of the VIM.
p. Frye that the government of the
United States learns with regret that
the objections urged by it against the
submission of this case to the prize
court for decision have not commend
ed themselves to the imperial German
government and it equally regrets
that the reasons presented by the i'm
perial German government for sub
mitting this case to the prize court
have failed to remove the objections
of the government of the United
States to the adoption of that course.
''As this disagreement has been
reached after the full presentation of
the views of both governments in our
previous correspondence a further ex-
change of views on the questions in
dispute would doubtless be unprofit-
able and the government of the Unit
ed States therefore welcomes your ex-
cellencys suggestion that some other
way should be found for settling this
case.
1.-The two methods Of settlement pro-
posed as alternative suggestions in
your excellency's note have been CIV
en- careful consideration and it is be-
lieved that If they can be combined
SO that they may both be adopted they
will furnish satisfactory basis for
the solution of the question at issue.
1.-The government OF the United
States has already expressed its de-
sire that the question Of the amount
of indemnity to be paid by the i'm
perial German government under its
admitted liability for the losses OF the
owners and captain on account of the
destruction of the Frye should be set
tied by diplomatic negotiation and 1t
entirely concurs with the suggestion
of the imperial German government
that the simplest way would be to
agree. as proposed in your note, that
each of the two governments desig-
nate an expert and the two experts
jointly fix the amount of indemnity
for the vessel and any American
property which may have been sunk
with her. to be paid by the imperial
German government when ascertained
as stated in your note. 1t is assumed
that the arrangement will include
some provision for calling in an UNI
pire in case the experts fail to agree