The Birmingham age-herald., 1915-10-04
FRENCH DISCUSSION
 OF POINTS AT ISSUE
 MAY ADJUST MATTERS
Imperial Government Con- tinues to Express Desire to Come to An Amicable Understanding Wit h Washington

Washington. october 3.-Germany has failed to satisfy the request of the United States that the sinking of the Arabic with loss of American lives be disavowed and liability for the act assumed by the imperial government. This became known after a conference tonight between President Wilson and Secretary Lansing at which the secre- tary submitted note given him yes terday in New York by Count von Bernstorff, the German ambassador.
 No announcement was made after the White House conference Secretary Lansing said merely that it was inad- visable to comment on the situation while the negotiations were still con fidential. He. declined to say what the next step would be, but 1t was learned later the German ambassador would be asked to come to Washington soon to receive the view which the Amer loan government tnkes of the last der man note.
 Count von Bernstorff Is fully au- thorized by his government to conduct the submarine negotiations
 While the situation has improved to the extent that there is no danger Of an immediate break in diplomatic TO- lations as the note affords an oppor- tunity for further negotiation. it was stated reliably that final refusal by Germany to meet tho American view point on the Arabic case might bring about the threatened rupture in dtplo matic relations.
 Negotiations Secret
 Just what the details are on which the two governments are In conflict was not definitely known tonight be- cause of the veil of secrecy envelop- ing the negotiations. In general 1t was learned that Germany after examining the evidence submitted by the United States came to the conclusion that her submarine commander erred in assum- ing that the Arabic was intent on ram ming the German submarine when steering to rescue the passengers on the British steamer Dunsley This ad mission of mistake would amount to a disavowal of the act but the Uni- ted States has insisted that disavowal must be accompanied by an assumption or responsibility and liability and that full reparation must be given for American lives lost Germany in her first note indicated that even If the German commander made a mistake the imperial government would not feel obligated to pay damages but was willing to submit to arbitration the question of whether under the circum- stances the German comm lander did make an honest mistake, thus leaving it to an arbitral tribunal to decide what liability. If any. was therehS incurred. |
 President Wilson has taken the po- sition that the United States cannot arbitrate questions involving the loss of American lives and 1t is believed that in the next step the Washington government will indicate that the only matter 1t can submit to arbitration is the amount of the damages to be paid after the question of liability itself al- ready is admitted
 Negotiations on Friendly Basis.
 The fact that the negotiations are heinz conducted without publication of the texts of the notes, messages or memoranda passing between the two Is considered by high of hcials an important factor. for 1t per mits of frank discussion of the points at issue.
 There were rumors today that Count von Bernstorff was preparing to sup plemert the note he left with Secre- | tary Lansing yesterday if he found l that did not satisfy the American gov | This could not be confirmed l here on account of the absence of the | ambassador.
 The Arabic case has completely sub ordinated other cases that previously l had arisen between the United States | and Germany over submarine warfare, and 1t has been known to Germany | that the American government is look Ing on the Arabic negotiatfons aa q test of good faith. The fact that no l American lives have been lost recent |
 iCsatinued or Page Eighe,