A ray of hope gleamed across our national horizon when Germany, on February 16, sent a note acknowledging her liability in the Lusitania affair. But the whole matter was soon complicated again by the "armed ship" issue. Germany had sent a note to the neutral powers that an armed merchant ship would be treated as a warship and would be sunk on sight. Secretary Lansing made the statement for this government that by international law commercial ships have a right to arm themselves for self-defense. It was an additional emphasis on the position that the submarine campaign as conducted by Germany was simply piracy and had no standing in international law. President Wilson, in a letter to Senator Stone February 24, said that American citizens had a right to travel on armed merchant ships, and he refused to advise them against exercising the right. March 24 the French steamer Sussex, engaged in passenger traffic across the English channel, was torpedoed and sunk without warning. About eighty passengers, including American citizens, were killed or wounded. Several notes passed between our government and Germany on the sinking of the Sussex and other vessels. Our ambassador at Berlin was instructed to take energetic action and to insist upon adequate attention to our demands. April 18 our government delivered what was considered an ultimatum to the effect that unless Germany abandoned her methods of submarine warfare, the United States would sever diplomatic relations. The president addressed congress on the matter the following day. Germany had not yet completed her program of submarine building and thought it wise to temporize with the American government for a while longer. May 4 she replied to the ultimatum of April 18, acknowledged the sinking of the Sussex and in the main acceded to all the demands of the United States. There were certain phases which indicated that Germany wished to use this country as a medium for securing certain agreements from the Allies. The president accepted the German conditions generally, but made it clear in his reply that the conditions could not depend upon any negotiations between this country and other belligerents. The intimation was plain enough that the United States would not be a catspaw for German aims. Up to this time in the year 1916 the advantage in arms had been greatly on the side of Germany and her allies. In January the British had evacuated the entire Gallipoli peninsula and the campaign in Turkey soon came to grief. Cettinje, the capital of Montenegro, had also fallen to the Teutonic allies, and that country practically was put out of the war.