Austria-Hungary's position was obvious to the whole world.

She was ready to make peace without annexations and without war compensation, and to devote all her energies to preventing the recurrence of a war.

(Austria-Hungary's standpoint was that a universal, equal, but extensive disarmament on sea and on land offered the only means to restore the financial situation in Europe after the war.) Germany must publicly notify her position just as clearly as Austria-Hungary had done and must declare the following: (1) No annexations, no indemnities.
(2) Particularly the unconditional and total release of Belgium (politically and economically).
(3) All territories occupied by Germany and Austria-Hungary to be evacuated as soon as both those States had had their territories restored to them (including the German colonies).
(4) Germany, as well as Austria-Hungary, to work for a general disarmament and guarantee that no further war be possible.
Such declaration to be a joint one from the German Government and the Reichstag, and to be made public.
The peace resolution of July 19, 1917, was the result of this step.
The Imperial Chancellor Bethmann was the first victim.

The Supreme Military Command, by whom he always had been persecuted, now trying to secure his dismissal, declared such resolution to be unacceptable.
When Bethmann had gone and Michaelis had been appointed, they were satisfied.
Although the resolution in itself was satisfactory, it had one fault at the start.

It was no secret that everyone connected with Pan-Germanism, especially the German generals, disagreed with the decision, and would not accept the resolution as coming from the entire country.