So far all experience shows that submarines never lay mines out of sight of landmarks or lights on account of danger to themselves if location is not known. Maximum augmentation merchant tonnage and anti-submarine work where most effective constitute the paramount immediate necessity. Mr. Hoover informs that there is only sufficient grain supply in this country for three weeks. This does not include the supply in retail stores. In a few days Mr. Hoover will sail for the United States. SIMS. APPENDIX III FIRST DETAILED REPORT ON THE ALLIED NAVAL SITUATION LONDON, ENGLAND. April 19, 1917. From: Rear-Admiral Wm. S. Sims, U.S.N. To: Secretary of the Navy. Subject: Confirmation and elaboration of recent cablegrams concerning War situation and recommendations for U.S. Naval co-operation. 1. _Reception_: My reception in this country has been exceptionally cordial and significant of the seriousness of present situation and the importance to be attached to the United States' entry into the war. I was met at Liverpool by Rear-Admiral Hope, R.N., a member of Admiral Jellicoe's staff, and the Admiral of the Port, the former having been sent by the Admiralty to escort me to London. A special train was provided which made a record run, and within a few hours after arrival in London I was received by the First Sea Lord and his principal assistants in a special conference. 2. _Conferences_: More or less hesitancy was noted at first in presenting a full statement of the true situation, particularly (as it developed later) on account of its seriousness, combined with a natural reluctance against appearing to seek assistance, and a hesitancy in taking chances of allowing information indirectly to reach the enemy, and thereby improve enemy _moral_. I therefore positively took the position that I must be considered a part of the Admiralty organization, and that it was essential to safe and efficient co-operation that I be trusted with a full knowledge of the exact situation. They finally consented, only after reference to the Imperial War Council, to my exposing the true state of affairs both as regards the military situation and rate of destruction of merchant shipping. I have had daily conferences with the First Sea Lord, both at his office and residence, and also have been given entire freedom of the Admiralty and access to all Government Officials. I have freely consulted with such officials as the following: Prime Minister. First Lord of Admiralty (Sir Edward Carson). Ministers of Munitions, Shipping, Trade, and other Cabinet officials. First Sea Lord, and his assistants. Chief of Naval Staff. Directors (corresponding to our Chiefs of Bureaus) of Intelligence, Anti-submarine operations, Torpedoes, Mines, Mining, etc. 3. _General Statement of the Situation_: