Sir Edward Goschen, Ambassador at Berlin, telegraphed to Grey a report of his interview with Chancellor von Bethmann-Hollweg.
He informed me that Austria-Hungary refused to act on your suggestion to make the Serbian reply the basis of discussion. Von Jagow had written to Vienna that, though Serbia had shown a certain desire to meet the demands made on her, nevertheless he appreciated Austria's requirement of guaranties which were absent in the Serbian reply:
"The Chancellor then went on to say that the hostilities which were about to be undertaken against Serbia had presumably the exclusive object of securing such guaranties, seeing that the Austrian Government already assured the Russian Government that they had no territorial designs.
"He advised the Austro-Hungarian Government, should this view be correct, to speak openly in this sense. The holding of such language would, he hoped, eliminate all possible misunderstandings.
"As yet, he told me, he had not received a reply from Vienna.
"From the fact that he had gone so far in the matter of giving advice at Vienna, his excellency hoped that you would realize that he was sincerely doing all in his power to prevent danger of European complications."
Goschen reported an interview with the German Secretary of State. Von Jagow was much depressed.
"He reminded me that he had told me the other day that he had to be very careful in giving advice to Austria, as any idea that they were being pressed would be likely to cause them to precipitate matters and present a fait accompli. This had, in fact, now happened, and he was not sure that his communication of your suggestion that Serbia's reply offered a basis for discussion had not hastened declaration of war. He was much troubled by reports of mobilization in Russia, and of certain military measures, which he did not specify, being taken in France. He subsequently spoke of these measures to my French colleague [M. Jules Cambon] who informed him that French Government had done nothing more than the German Government had done, namely, recalled officers on leave. His excellency denied German Government had done this, but as a matter of fact it is true. My French colleague said to under-Secretary of State [Herr von Zimmermann] that, when Austria had entered Serbia, and so satisfied her military prestige, the moment might then be favorable for four disinterested powers to discuss situation and come forward with suggestions for preventing graver complications. Under-Secretary of State seemed to think idea worthy of consideration, as he replied that would be a different matter from conference proposed by you."
Grey replied to Goschen, stating his appreciation of the Dr. von Bethmann-Hollweg's language, and assuring the Chancellor that Great Britain would strain every effort for peace.
"If he can induce Austria to satisfy Russia and to abstain from going so far as to come into collision with her, we shall all join in deep gratitude to his excellency for having saved the peace of Europe."
Ambassador Buchanan at St. Petersburg telegraphed to Grey that partial mobilization had been ordered. This said M. Sazonof, Minister for Foreign Affairs, was against Austria-Hungary alone. Direct conversation with St. Petersburg having been refused by Vienna, he would urge Germany that a return be made to your proposal of a four-power conference.
Ambassador Bunsen reported from Vienna that there was no step to be taken at present to stop war with Serbia, to which the Austro-Hungarian Government was fully committed by the declaration of war, and Kaiser Francis Joseph's appeal to his people, published this morning. In the opinion of Duke d'Avarans, the Italian Ambassador, Russia might be quieted by Austria-Hungary making a binding engagement not to destroy Serbian independence nor seize Serbian territory, but this she would refuse to do.
Sir Rennell Rodd, Ambassador at Rome, telegraphed that the Marquis di San Giuliano would urge in Berlin an exchange of views by the powers in London, and suggest that the German Secretary of State propose a formula acceptable to his Government.
"The Secretary for Foreign Affairs remarked that it was difficult to make Germany believe that Russia was in earnest. As Germany, however, was really anxious for good relations with ourselves, if she believed that Great Britain would act with Russia and France he thought it would have a great effect."
Grey replied to Rodd that the London conference was now impracticable owing to the attitude of Austria-Hungary, and that Italy must now speak at Berlin and Vienna.
Grey telegraphed to Ambassador Goschen at Berlin that the German Chancellor, Von Bethmann-Hollweg, said he was endeavoring to make Austria satisfactorily explain at St. Petersburg the scope of her proceedings in Serbia, but information comes from Vienna that Austria declines to discuss the Serbian issue. Germany opposes the four-power conference. I asked her to present her plan to prevent war between Russia and Austria, France and Italy joined with my request.
"Let mediation come into operation by any method that Germany thinks possible if only Germany will 'press the button' in the interests of peace."
Goschen telegraphed back to Grey that he had had an interview with Bethmann-Hollweg who had just returned from Potsdam. The Chancellor feared Germany's being drawn into war by Russia attacking her ally.
"He then proceeded to make the following strong bid for British neutrality. He said that it was clear, so far as he was able to judge the main principle which governed British policy, that Great Britain would never stand by and allow France to be crushed in any conflict there might be. That, however, was not the object at which Germany aimed. Provided that neutrality of Great Britain were certain, every assurance would be given to the British Government that the Imperial Government aimed at no territorial acquisitions at the expense of France should they prove victorious in any war that might ensue.
"I questioned his excellency about the French colonies, and he said that he was unable to give a similar undertaking in that respect. As regards Holland, however, his excellency said that, so long as Germany's adversaries respected the integrity and neutrality of the Netherlands, Germany was ready to give his majesty's Government an assurance that she would do likewise. It depended upon the action of France what operations Germany might be forced to enter upon in Belgium, but when the war was over, Belgian integrity would be respected if she had not sided against Germany.
"His excellency ended by saying that ever since he had been Chancellor the object of his policy had been, as you were aware, to bring about an understanding with England; he trusted that these assurances might form the basis of that understanding which he so much desired. He had in mind a general neutrality agreement between England and Germany, though it was of course at the present moment too early to discuss details, and an assurance of British neutrality in the conflict which present crisis might possibly produce, would enable him to look forward to realization of his desire.
"In reply to his excellency's inquiry how I thought his request would appeal to you, I said that I did not think it probable that at this stage of events you would care to bind yourself to any course of action and that I was of opinion that you would desire to retain full liberty."
Grey informed Ambassador Bertie at Paris of a conversation he had had with M. Paul Cambon, the French Ambassador.
I told Cambon that I would inform the German Ambassador Prince Lichnowsky, to-day that he must not suppose by my friendly tone that we should stand aside in event of a general war following failure of efforts to maintain peace. However, I warned Cambon that the case of Serbia was not like that of Morocco, in which we had made a special agreement with France, but one in which we did not feel called to take a hand.
"M. Cambon said that I had explained the situation very clearly. He understood it to be that in a Balkan quarrel, and in a struggle for supremacy between Teuton and Slav we should not feel called to intervene; should other issues be raised, and Germany and France become involved, so that the question became one of the hegemony of Europe, we should then decide what it was necessary for us to do. He seemed quite prepared for this announcement, and made no criticism upon it.
"He said French opinion was calm, but decided. He anticipated a demand from Germany that France would be neutral