"The French Ambassador [Dumaine] hears from Berlin that the German Ambassador at Vienna [Tschirsky] is instructed to speak seriously to the Austro-Hungarian Government against acting in a manner calculated to provoke a European war.
"Unfortunately the German Ambassador is himself so identified with extreme anti-Russian and anti-Serbian feeling prevalent in Vienna that he is unlikely to plead the cause of peace with entire sincerity.
"Although I am not able to verify it, I have private information that the German Ambassador knew the text of the Austrian ultimatum to Serbia before it was dispatched, and telegraphed it to the German Emperor. I know from the German Ambassador himself that he indorses every line of it."
Ambassador Buchanan telegraphed from St. Petersburg to Grey of an interview with the Russian Minister for Foreign Affairs.
"M. Sazonof said that German Ambassador [Count Pourtalès] had told him yesterday afternoon that German Government were willing to guarantee that Serbian integrity would be respected by Austria. To this he had replied that this might be so, but nevertheless Serbia would become an Austrian vassal, just as, in similar circumstances Bokhara had become a Russian vassal. There would be a revolution in Russia if she were to tolerate such a state of affairs.
"M. Sazonof told us that absolute proof was in possession of Russian Government that Germany was making military and naval preparations against Russia—more particularly in the direction of the Gulf of Finland.
"German Ambassador had a second interview with Minister for Foreign Affairs at 2 a. m., when former completely broke down on seeing that war was inevitable. He appealed to M. Sazonof to make some suggestion which he could telegraph to German Government as a last hope. M. Sazonof accordingly drew up and handed to German Ambassador a formula.
"'If Austria, recognizing that her conflict with Serbia has assumed character of question of European interest, declares herself ready to eliminate from her ultimatum points which violate principle of sovereignty of Serbia, Russia engages to stop all military preparations.'
"Preparations for general mobilization will be proceeded with if this proposal is rejected by Austria, and inevitable result will be a European war. Excitement here has reached such a pitch that, if Austria refuses to make a concession, Russia cannot hold back, and now that she knows that Germany is arming, she can hardly postpone, for strategical reasons, converting partial into general mobilization."
Ambassador Goschen telegraphed from Berlin to Grey:
"Secretary of State [Von Jagow] informs me that immediately on receipt of Prince Lichnowsky's [German Ambassador in London] telegram recording his last conversation with you he asked Austro-Hungarian Government whether they would be willing to accept mediation on basis of occupation by Austrian troops of Belgrade or some other point and issue their conditions from here. He has up till now received no reply, but he fears Russian mobilization against Austria will have increased difficulties, as Austria-Hungary, who has as yet only mobilized against Serbia, will probably find it necessary also against Russia. Secretary of State says if you can succeed in getting Russia to agree to above basis for an arrangement and in persuading her in the meantime to take no steps which might be regarded as an act of aggression against Austria he still sees some chance that European peace may be preserved.
"He begged me to impress on you difficulty of Germany's position in view of Russian mobilization and military measures which he hears are being taken in France. Beyond recall of officers on leave—a measure which had been officially taken after, and not before, visit of French Ambassador [Jules Cambon] yesterday—Imperial Government had done nothing special in way of military preparations. Something, however, would have soon to be done, for it might be too late, and when they mobilized they would have to mobilize on three sides. He regretted this, as he knew France did not desire war, but it would be a military necessity.
"His excellency added that telegram received from Prince Lichnowsky last night contains matter which he had heard with regret, but not exactly with surprise, and at all events he thoroughly appreciated frankness and loyalty with which you had spoken.
"He also told me that this telegram had only reached Berlin very late last night; had it been received earlier chancellor would, of course, not have spoken to me in the way he had done."
Ambassador Bertie telegraphed from Paris to Grey the report of Germany's request to Russia to be informed on what conditions Russia would consent to demobilization.
"The answer given is that she agrees to do so on condition that Austria-Hungary gives an assurance that she will respect the sovereignty of Serbia and submit certain of the demands of the Austrian note, which Serbia has not accepted, to an international discussion."
SIR EDWARD GREY REFUSES TERMS OF NEUTRALITY
Grey telegraphed to Ambassador Goschen at Berlin in answer to his telegram of July 29:
"His Majesty's Government cannot for a moment entertain the Chancellor's proposal that they should bind themselves to neutrality on such terms.
"What he asks us in effect is to engage to stand by while French colonies are taken and France is beaten, so long as Germany does not take French territory as distinct from the colonies.
"From the material point of view such a proposal is unacceptable, for France, without further territory in Europe being taken from her, could be so crushed as to lose her position as a great power, and become subordinate to German policy.
"Altogether apart from that, it would be a disgrace for us to make this bargain with Germany at the expense of France, a disgrace from which the good name of this country would never recover.
"The chancellor also in effect asks us to bargain away whatever obligation or interest we have as regards the neutrality of Belgium. We could not entertain that bargain either.
"Having said so much it is unnecessary to examine whether the prospect of a future general neutrality agreement between England and Germany offered positive advantages sufficient to compensate us for tying our hands now. We must preserve our full freedom to act as circumstances may seem to us to require in any such unfavorable and regrettable development of the present crisis as the chancellor contemplates.
"You should speak to the chancellor in the above sense, and add most earnestly that the one way of maintaining the good relations between England and Germany is that they should continue to work together to preserve the peace of Europe; if we succeeded in this object, the mutual relations of Germany and England will, I believe, be ipso facto improved and strengthened. For that object his majesty's Government will work in that way with all sincerity and good will.
"And I will say this: If the peace of Europe can be preserved, and the present crisis safely passed, my own endeavor will be to promote some arrangement to which Germany could be a party, by which she could be assured that no aggressive or hostile policy would be pursued against her or her Allies by France, Russia, and ourselves, jointly or separately. I have desired this and worked for it, as far as I could, through the last Balkan crisis, and, Germany having a corresponding object, our relations sensibly improved. The idea has hitherto been too Utopian to form the subject of definite proposals, but if this present crisis, so much more acute than any that Europe has gone through for generations, be safely passed, I am hopeful that the relief and reaction which will follow may make possible some more definite rapprochement between the powers than has been possible hitherto."
Grey telegraphed Ambassador Buchanan at St. Petersburg:
"German Ambassador [Prince Lichnowsky] informs me that German Government would endeavor to influence Austria, after taking Belgrade and Serbian territory in region of frontier, to promise not to advance further, while powers endeavored to arrange that Serbia should give satisfaction sufficient to pacify Austria. Territory occupied would of course be evacuated when Austria was satisfied. I suggested this yesterday as a possible relief to the situation, and, if it can be obtained, I would earnestly hope that it might be agreed to suspend further military preparations on all sides.
"Russian