As regards the British ship Falaba,' by the sinking of
which an American lost his life, the Reply says that the commander of the German submarine intended to allow the passengers and crew to escape, but when the master refused to heave to and sent up rockets for assistance the German commander ordered the crew and passengers to leave the ship in ten minutes. Actually he allowed them twenty-three minutes, and then fired a torpedo only when "suspicions craft" were hastening to the scene. As for the ' Lusitania,' Germany had already expressed her keen regret at the loss of neutral lives. At the same time, the German Govern- ment think that certain important facts may have escaped the attention of the American Government. It is suggested that before a "clear and complete understanding" can be reached it is necessary that the two Governments should be in accord as to the facts. Germany maintains that the 'Lusitania' was an armed merehantman, and is supported in this view by trustworthy reports that practically all the more valuable British merchantmen are armed.