If this attempt is not successful, we propose an alliance on the following basis with Mexico: That we shall make war together and together make peace.

We shall give general financial support, and it is understood that Mexico is to reconquer the lost territory in New Mexico, Texas and Arizona.

The details are left to you for settlement.

You are instructed to inform the president of Mexico of the above in the greatest confidence as soon as it is certain there will be an outbreak of war with the United States, and suggest that the president of Mexico on his own initiative, should communicate with Japan suggesting adherence at once to this plan; at the same time offer to mediate between Germany and Japan.

Please call to the attention of the President of Mexico that the employment of ruthless submarine warfare now promises to compel England to make peace in a few months." The American steamers City of Memphis, Vigilancia and Illinois had been sunk and fifteen lives lost in pursuance of the German submarine policy to torpedo without warning and without any regard to the safety of crews or passengers, all ships found within the barred zones.