As evidenced by Admiral v. Holtzendorff's statements, the German naval authorities hold the standpoint that there exists an absolute necessity for the quickest possible inauguration of an unrestricted U-boat campaign. The arguments employed in support of this thesis are known from the reports of the Imperial and Royal Ambassador in Berlin (report of 12/1/17 Nr. 6/P, and telegram of 13/1 Nr. 22), and may be summarised in the following sentences: Lack of time, decreasing human material in the Central Powers, progressive deterioration of the harvest, impending Anglo-French offensive on the Western front with improved and increased means for fighting, and the necessity arising therefrom to prevent or at least check the reinforcements required for such undertaking, the impossibility of obtaining a decision on land, the necessity of raising the _moral_ of the troops by ruthlessly obtained results and the use of every available means in war, certainty of the success of an unrestricted U-boat warfare in view of provisions in England only being sufficient for two to three months, as well as the stoppage of the munitions output and industrial production owing to the lack of raw material, the impossibility of supplying coal to France and Italy, etc., etc. Concerning the carrying out of the plan, the German Navy owns at present for that purpose 120 U-boats of the latest type. In view of the great success achieved by the U-boats at the beginning of the war, when there were only 19 of an antiquated type, the present increased numbers of the vessels offer a safe guarantee of success. February 1 is suggested on the part of the Germans as the date on which to start the unrestricted U-boat warfare and also to announce the blockade of the English coast and the west coast of France. Every vessel disobeying the order will be torpedoed without warning. In this manner it is hoped to bring England to reason within four months, and it must here be added that Admiral von Holtzendorff _expressis verbis_ guaranteed the results. As regards the attitude to be taken by the neutrals, leading German circles, although aware of the danger, hold optimistic views. It is not thought that either the Scandinavian countries or Holland will interfere with us, although, in view of the possibility of such happening, military precautions have been taken. The measures taken on the Dutch and Danish frontiers will, in the opinion of the Germans, hold those countries in check, and the possibility of sharing the fate of Roumania will frighten them. Indeed, it is expected that there will be a complete stoppage of all neutral shipping, which in the matter of supplies for England amounts to 39 per cent. of the cargo space. Meanwhile concessions will be granted to the neutrals by fixing a time limit for the withdrawal of such of their vessels as may be at sea on the opening day of the U-boat warfare.