Daily capital journal. (Salem, Oregon) 1903-1919, 1917-01-12
COnfers With Special Envoy
House Regarding War
Situation
GERMANY is READY TO
MAKE MANY CONCESSIONS
Entente Reply Is Discourag-
ing But Does Not Close
Peace Door
By Robert ]. Bender.

Omitted Press staff correspondent.l
Washington, Jan. 12.-President Will
sons next move in the international
peace game depends upon what conf
dental information he has frem Ger
many as to terms upon which she would
consider peace at this time.
In the absence of positive knowledge
as to what, if any, information the
president has on this question, officials
today believed the entente reply leaves
practically no loophole for further ad-
vances by the president now. Germany
must furnish Wilson grounds for the
next move.
Colonel House Confers.
Colonel E. M. House, who alwavs
makes his appearance in Washington
just after an important international
communication has been received or
when one is about to be sent by this
country, is here today. House attended
dinner with the president at Secre-
tary of State Lansing's home last night
and is to remain at the White House
until tonight, presumably to confer
with the president as to the next step
this government will take.
Germany VIII Concede.
Should the president have in his pos-
session information indicating that the
entente outline her peace definitions.
/ square to an encouraging degree with
Germany would be willing to eonccde.
another effort by this government may
! be expected
In this connection it is understood.
t'has information indicating Germany
would agree to the following conces-
sions:
Evacuation and indemnifyine of Bel
GUM, evacuation OF France: evaenation
OF Poland; evacuation of Serbia and
/ Rumania.
Germany would deand return of her
colonies-a point not touched upOn in
the entente reply, and would insist that
neither she nor her allies be deprived
OF any territory, including CONSTANT
nople.
In view of the fact that Russia de-
mands acquisition of Constantin0ple and
the entente demands ''expulsion from
Europe of the Ottoman empire, Con-
stantinople may turn out to be tho
chief bone of contention in any peace
moves.
Germany is willing to indemnify Bel
glum because she admits violation of a
treaty, through military necessity. -
She would not, under the terms discuss
ed at her embassy here, be willing TO
indemnify other small nations invaded
because she was at war with all of them
before invasion occurred.
Secrecy Will Be Observed.
Ultra secrecy is promised now until
the president has decided on his next
step.
The entente reply created not only
surprise but disappointment here. 1t
was hoped Great Britain and her allies
would indicate at least slight ten
deney to favor peace deliberations of
some kind now. No encouragement
could be found, however, in the first
persual of the reply.
In German circles it was considered
as flat rundown of the proposal.
Ambassador Won Bernstorff held that
it showed determination to dismember
Germany and her allies.
Central Powers United.
1t is his belief that refusal of the
entente to consider peace at this time
will do much toward uniting more firm
ly the central powers and the Teutonie
peoples toward more determined pur-
suit of the war.
What this may lead to has caused
the administration its chief worry. The
"verge of war" Interpretation given
the first communication sent by the
president to belligerents was based on