He thought I should go directly to Germany without stopping in England, and that Gerard should prepare the Kaiser for my coming, telling him of my relations with the President.

He thought this would be sufficient without any further credentials.
In other words, he would do with the Kaiser what you did with Sir Edward Grey last summer.
I spoke to the President about the matter and he seemed pleased with the suggestion; in fact, I might say, he was enthusiastic.

He said, just as Sir William did, that it would be too late for this year's budget; but he made a suggestion that he get the Appropriations Committee to incorporate a clause, permitting him to eliminate certain parts of the battleship budget in the event that other nations declared for a naval holiday.

So this will be done and will further the plan.
Now I want to get you into the game.

If you think it advisable, take the matter up with Sir William Tyrrell and then with Sir Edward Grey, or directly with Sir Edward, if you prefer, and give me the benefit of your advice and conclusions.
Please tell Sir William that I lunched at the Embassy with the Spring Rices yesterday, and had a satisfactory talk with both Lady Spring Rice and Sir Cecil.
Faithfully yours, E.M.