Within two years Germany had won that war: not only won it nominally, but won it actually. The German submarines, which were a surprise to the world, had swept all the convoys from the Atlantic Ocean. Great Britain stood there without ammunition for her soldiers, with one week's food supply -- and after that, starvation. At that time, the French army had mutinied. They had lost 600,000 of the flower of French youth in the defense of Verdun on the Somme. The Russian army was defecting, they were picking up their toys and going home, they didn't want to play war anymore, they didn't like the Czar. And the Italian army had collapsed.
Not a shot had been fired on German soil. Not one enemy soldier had crossed the border into Germany. And yet, Germany was offering England peace terms. They offered England a negotiated peace on what the lawyers call a status quo ante basis. That means: "Let's call the war off, and let everything be as it was before the war started." England, in the summer of 1916 was considering that -- seriously. They had no choice. It was either accepting this negotiated peace that Germany was magnanimously offering them, or going on with the war and being totally defeated.