Peru has broken off relations with Germany, after failing to
obtain satisfaction for the unlawful sinking .of the Peruvian ship ' Lorton' by a German submarine. Uruguay has done the same for the excellent reason that she desires to show her sympathy with the Allies, and her desire that all America should protest against German barbarity. The ten German steamers which sought refuge at Callao and Mollendo and the eight at Montevideo may now be regarded as lost to Germany, but the damage to German prestige in South America is far more serious. For the sake of her reckless submarine campaign Germany has naked her whole commercial future in those rich countries, on which she had long east a covetous eye. The President of Argentina still hesitates to break with Ger- many, as his Congress has asked him to do, but the notorious Count Lnxburg has not been replaced.
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