I found this:
With the permission of; with deference to. Used to express polite or ironically polite disagreement: I have not, pace my detractors, entered into any secret negotiations.
I'd consider the term *very* old-fashioned, if not archaic, and would have to think twice before recognising its meaning (especially in the days where demonstrators against the US militarism in Iraq turned to the Spanish (?) 'pace' to avoid having to use the English 'peace')
I don't think [form.] is quite right either, since, even in formal circumstances, I'd consider the word misplaced, harking as it does to Victorian times...
as to the German: whether the definition offered by AHD agrees with the German offered above, I'll leave up to the natives.