The campaign of mendacity organised by Germans in the United States was also carried into Canada. The _Montreal Star_ stated that on August 20th a well-known Montreal lawyer received a letter from a prominent German resident of New York in which was given as an authenticated fact, which the British censors had suppressed, the story of the sinking of seven British Dreadnoughts by German torpedo-boats. A banker was assured by a German acquaintance in New York that Germany had officially announced the destruction of an English seaport--name not given--by bombs from a Zeppelin. Another lawyer was asked confidentially to suggest the best means of getting this "news" from German sources to the Montreal public. A Montreal citizen sent to the _Canadian Gazette_ the following paragraph from the New _Yorker Staats Zeitung_, as circulated in Canada: New York, _August 18th_.--We have very favourable news from private letters concerning the Zeppelin airships. The question has often been asked: "Where are the Zeppelins, and what are they doing?" The following information received in a private letter speaks for itself: "Every night the Zeppelin airships go out to the North Sea, and when they return there is an English battleship destroyed. Nineteen English battleships have been destroyed so far." CHAPTER III Position of Italy--German Intrigues--the Triple Alliance--Turkey's Activity--Plans for Attacking Egypt--A British Warning. THE war had hardly begun before Italy officially announced her intention of remaining neutral. From German sources rumours were circulated to the effect that dissension had arisen in the Italian Cabinet between Signor Salandra (the Prime Minister) and the Marchese di San Giuliano (the Foreign Minister). These rumours, however, proved to be unfounded, and certainly the Italian Government presented not only a correct attitude but a united front both to the Triple Entente and to her partners in the Triple Alliance. It may be briefly mentioned why Italy, although nominally one of the members of the Triplice--Germany, Austria and Italy--should nevertheless have chosen to remain inactive while her nominal allies were engaged in fighting Servia, Russia, France, England, Belgium, and Montenegro.