German eyes turned to Mexico. As soon as President Wilson recognised Carranza as President, Germany followed with a formal recognition. Zubaran Capmany, who had been Mexican representative in Washington, was sent to Berlin as Carranza's Minister. Immediately upon his arrival Zimmermann began negotiations with him. Reports of the negotiations were sent to Washington. The State Department was warned that unless the United States solved the "Mexican problem" immediately Germany would prepare to attack us through Mexico. German reservists were tipped off to be ready to go to Mexico upon a moment's notice. Count von Bernstorff and the German Consuls in the United States were instructed, and Bernstorff, who was acting as the general director of German interests in North and South America, was told to inform the German officials in the Latin-American countries. At the same time German financial interests began to purchase banks, farms and mines in Mexico. CHAPTER V THE DOWNFALL OF VON TIRPITZ AND VON FALKENHAYN After the sinking of the _Arabic_ the German Foreign Office intimated to the United States Government and to the American correspondents that methods of submarine warfare would be altered and that ships would be warned before they were torpedoed. But when the Navy heard that the Foreign Office was inclined to listen to Mr. Wilson's protests it made no attempt to conceal its opposition. Gottlieb von Jagow, the Secretary of State, although he was an intimate friend of the Kaiser and an officer in the German Army, was at heart a pacifist. Every time an opportunity presented itself he tried to mobilise the peace forces of the world to make peace. From time to time, the German financiers and propaganda leaders in the United States, as well as influential Germans in the neutral European countries, sent out peace "feelers." Von Jagow realised that the sooner peace was made, the better it would be for Germany and the easier it would be for the Foreign Office to defeat the military party at home. He saw that the more victories the army had and the more victories it could announce to the people the more lustful the General Staff would be for a war of exhaustion. Army leaders have always had more confidence in their ability to defeat the world than the Foreign Office. The army looked at the map of Europe and saw so many hundred thousand square miles of territory under occupation. The Foreign Office saw Germany in its relation to the world. Von Jagow knew that every new square mile of territory gained was being paid for, not only by the cost of German blood, but by the more terrible cost of public opinion and German influence abroad. But Germany was under martial law and the Foreign Office had nothing to say about military plans. The Foreign Office also had little to say about naval warfare. The Navy was building submarines as fast as it could and the number of ships lost encouraged the people to believe that the