The Washington times., 1915-12-26
State Department Has Only Un-
official AdViCes Concerning
Reported Concessions.
MUST DECIDE BY WEEKS END
Reply Now Said to Be Under
Preparation Expected to
Suggest Arbitration.

Before the present Aweek ends the
United States Government will be forced
to decide whether 1t shall stand fiatly on
the three demands made upon Austria in
the Ancona case. or accept partial con-
cessions leading to further NEGOTIATION.
This conclusion was forced upon state
Department officials todav when advised
by news dispatches from Vienna that
Baron Buriany the Austrian foreign
minister, is preparing reply to the sec
ond American note. and Will hand 1t TO
Ambassador Penfeld early this week. and
that an offer to submit to arbitration the
American demands for disavowal and
punishment of the submarine command
er will be the essential features OF the
Austrian reply.
No Word From Peniield.
Secretary Of State Lansing had only
these unofficial advices as to Austria
intentions to guide him today. No word
was received from Ambassador Penfeld
during the day. In fact. officials said
Peneld has been silent since he advised
the department Thursday of the receipt
of the second American note.
Neither had the department received
any official information on the sinking
of the japanese liner Yasaka Maru by
an Austrian or German submarine in
the Mediterranean channel. although
every effort has been made to obtain
information from American diplomatic
and consular officers since the FIRST
news dispatches OF this incident were
received three days ago.
Intimations received from the German
and Austrian embassies in Washington,
however. substantiating the statement
that Austria will suggest arbitration in
L.
WINGED officials that this issue will have
to be met.
This has given grounds for the belief
that the Austrian reply VIII be to some
extent a conciliatorg measure. and one
inviting further negotiations. But
whether the United States will accept
the suggestion in the light OF its an
nounced decision mot to debate" the
question of policy that must be decided
when the second Austrian reply is re-
ceiVed.
Officials Not Optimistic.
One thing was plain in official discus
sion of the Ancona case today, and
that is that officials are inclined &c
discount the report of a favorable turn
of public sentiment in Austria. and the
Austrian predictions that Il friendly
settlement of the Ancona case will fol-
low the receipt by the United States
of the second note.
The reason for this pessirnistic feel
ing is that it has been asserted repeat
edIy in German and Austrian diplomat
&c circles in Washington during the
last few days that Austria will not dis
avow the sinking OF the Ancona. This
is the basic demand Liade by the
United States in its two notes.
The Austrian position is that subma-
rlne commanders have been operating
under general Instructions to sink
enemy ships. The commanders were
not Instructed to give warning. Aus
tria, therefore. is said TO feel that it
cannot consistently disavOw its own act
since the submarine commander merely
was following instructions when he
sank the Ancona.
1t developed today that Baron
Zwiedinek, the Austrian charge. has
been endeavoring to enter into oral dis
cussion with Secretary Of State Lam
sing on the basis of making offers as
to Austria's future submarine conduct
similarly as Count Won Bernstorff lle-
layed the LusitaDia negotiations by
presenting such pledges from his gov
ernment. Secretary Lansing Is said 10
have rejected these overtures and to
have told the diplomat that the United
States must deal directly with the AusT
trian government and must receive 4
satisfactory reply to its demands for
reparation in the Ancona case.