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unt Mensdorff the substance of the conversation that I had had with the German Ambassador this morning about that reply. "Count Mensdorff admitted that, on paper, the Serbian reply might seem to be satisfactory; but the Serbians had refused the one thing--the cooperation of Austrian officials and police--which would be a real guaranty that in practice the Serbians would not carry on their subversive campaign against Austria. "I said that it seemed to me as if the Austrian Government believed that, even after the Serbian reply, they could make war upon Serbia anyhow, without risk of bringing Russia into the dispute. If they could make war on Serbia and at the same time satisfy Russia, well and good; but, if not, the consequences would be incalculable. I pointed out to him that I quoted this phrase from an expression of the views of the German Government. I feared that it would be expected in St. Petersburg that the Serbian reply would diminish the tension, and now, when Russia found that there was increased tension, the situation would become increasingly serious. Already the effect on Europe was one of anxiety. I pointed out [as an instance of this] that our fleet was to have dispersed to-day, but we had felt unable to let it disperse. We should not think of calling up reserves at this moment, and there was no menace in what we had done about our fleet; but, owing to the possibility of a European conflagration, it was impossible for us to disperse our forces at this moment. It seemed to me that the Serbian reply already involved the greatest humiliation to Serbia that I had ever seen a country undergo, and it was disappointing to me that the reply was treated by the Austrian Government as if it were as unsatisfactory as a blank negative." Grey informed Sir Rennell Rodd, British Ambassador at Rome, that the Italian Ambassador at London had stated to Sir Arthur Nicholson, Under-Secretary for Foreign Affairs, that Italy agreed to the four-power conference, and that the Marquis di San Giuliano, Italian Minister for Foreign Affairs, would recommend to Germany the suggestion that Russia, Austria-Hungary, and Serbia should suspend military operations pending result of the conference, and would inquire what procedure Germany proposed to be followed at Vienna. Sir Francis Berti
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