The Birmingham age-herald., 1915-09-24
New German Note Creates
 Favorable Impression
tContinued from Page One,

strained relations between the two gov erIments
 The note follows:
 With regard first to the ascertain ment of the damage by experts, the German government believes that if should dispense with the nomination of an umpire. In the cases of the ascer- ta1nment of damages hitherto arranged between the German government and neutral government from similar causes the experts named by the two parties have always reached an agree ment as to the amount of the damage without difficulty: should it not be possible, however. to reach an agree ment on some point, it could probably De settled by diplomatic negotiation Assuming that the American govern ment agrees to this, the German gov ernment names as it's expert Dr. Kep- ny of Bremen, director of the Nord- German Lloyds it begs to await the deslgnation of the American expert
 The German government declares that 1t agrees to the proposal of the American government to separate the question of indemnity from the ques- ton Of the interpretation of the Prus- slan- American treaties of 17S5, 1799 and 1928. It therefore again expressly states that In making payment it does not acknowledge the violation of the treaty as contended by the American note. but it will admit that the set clement of the question of indemnity does not prejudice the arrangement of the differences of opinion concerning the interpretation of the treaty rights and that this dispute Is left to be de- cided by The Hague tribunal of arbi- tration.
 Compromise Negotiations
 The negotiations relative to the signing of the compromise provided by article p of The Hague arbitration convention would best be conducted be- tween the foreign office and the Amer ican embassy at Berlin in view of the difficulties in the way of instructing the imperial ambassador at Washing ton. In case the American government agrees, the foreign office is prepared to submit to the embassy a draft of such a compromise.
 "The American governments inquiry as whether the German government will govern it's naval operations in accordance with the German or the American interpretation of the treaty stipulations in question, pending the arbftral proceedings has been carefully considered by the German government. From the standpoint of law and equity it is not prevented, in It's opinion, from proceeding against American ships carrying contraband according to it's interpretation until the question is set tied by arbitration.
 Adopts Conciliatory Altitude
 For the German government does not need to depart from the applica- ton of generally recognized rules of the law of maritime war as the dec laration of London. unless and in so far as exceptions Is based on a treaty which establishes beyond all doubt contention. In the case of the pres Af ani ipJ> 1otx l,a German and the American government such an exception could not be taken to be established except on the ground of the arbitral award. Moreover the disadvantages to Germany which would ensue from the American interpreta- tion of the treaty stipulations would be so much greater as to be out of pro- portion to those which the German in- depreciation would entail for the Uni- ted States. For whereas the American interpretation would materially impede Germany in her conduct of warfare hardly any particular disadvantage to American citizens would result from the German interpretation since they receive full reparation for any property damage sustained.
 Nevertheless the German govern ment, in order to furnish to the Amer ican, government evidence of its con ciliatory attitude has issued orders 10 the german naVai lorceS not 10 destroy. American merchantmen which have loaded conditional contraband even when the conditions of interna- tfona1 law are present, but to permit them to continue their voyage un- hindered If it is not possible to take them into port. On the other hand 1t must reserve to itself the right to de- stroy vessels carrying absolute contra band wherever such destruction Is per- missible according to the provisions of the declaration of London"