The Sentinel=record., 1916-12-29

Hp NI'H Sud' ddlCtb AbI lub udluLeu-
 ance of peace in the future. such as
 freedom of the seas. limitation of ar maments. formation of @ world league
 to enforce peace and establishment of an international court of arbitration.
 Di. lomats familiar with the view points Of Germany and her allies were especially emphatic tonight in saying
 that Germany necessarily would be able to make much better terms in co1fidential negotiations than in pub lie. The radical element in German politics, it is said, must be considered Unde. any circumstances, however, 1t was said, Germany would not consid- CT making peace if the entente should insist upon retaining Germany's lost colonies and requesting Germany at the same time to eyacuate all enemy
 territory now occupied
 In admitting today that no furth v communication had accompanied the German or the Austrian reply to the presidents note officials stated flatly that such questions to this effect in the future would not be answered
 The official texts of the German and the Austrian replies received to- day, varied slightly from each other and from the original cab,ed press translation. Most of the difference, officials thought, was in the warmer, more cordial tone of the official yer sions.
 Differences between the two replies We're noted with interest. For in stance, the German reply refers u the presidents note as calling for the creation of bases for the founda- tion of a lasting peace" while the Austrian note has 1t an "an exchange of views for the eventual establish ment of peace.'
 Germany proposes "the speedy as- of the warning states" and Austria proposes that re. .resentatives of the belligerent powers convene at al early date at some place on neutral ground"
 The most decided difference noted was in Austria's ascrihing to Pres ident Wilson himself the view that t was necessary to postpone discussion Of guarantees for permanent peace. The Austrian reply "coIcurs with the president that only after the termin1- tion of the present war will it be | os sible to undertake the great and de sirable work of the prevention of fu- tCre wars" The presidents note said that the United States would be glad to cooperate towards permanent peace when the war is over," but dld not specifically declare the two sub jects could not be iscussed at the same time. In the allied countries there Is uncompromising hostility to any plan not guaranteeing "repara- tion, restitution and guarantees"
 Statements in the Austrian press which have turned from hostility 70 the residents not to expressions sug- gesting thtat he is allied with he central powers for the accomplish ment of the same end, caused further embarrassment here today in the ad- ministration's attempt to dissociate the American action from the central powers ncte of six days before
 President Wilson, believing that the peace discussions may go on fo- is looking forward to the nlt rdn frn1tl1a.t ,Nvlr g, foreign affairs that he has ever fac ed. This is the reason for his an nounced intention of seeing Secretary Lansing almost every day
 The president is said to realize that 6 complete failure of the peace nego- tiations probably would be followed by very serious difficulties with Ge-- many over the submarine issue. He will devote almost his entire etten- tioI to the negotiations.
 The text of the Austrian note sent through Ambassador Penfeld fol- lows:
 "A side memolCe. In reply to the aide memoire communicated on the twenty-second instant by his excel lency, the American ambassador, con taining the pro osals of the president of the United States cf America for an exchange of views among the pow CTS at present at wa for the eventual establishment of peace, the imperial and royal government desires partic- ula9ly to point out that in considera- tion the noble proposal Of the presi- dent it is guided by the same spirit of amity and coml laisance as finds eX- preSsion therein.
 The president desires 10 establish q basis for a lasting peace without wishing to indicate the ways and means The imperial and royal gov considers d direct exchange of views among the belligerents to be the most suitable way of attaining this end Adverting to it's declaration Of the twelfth instant. in which it al rounced its readiness to enter into peace negotiations. it now has the bonor to propose that representatives of the bellgerent powers convene a; an early date at some place on neutra! ground