ced to suggest lines on which he would find
it possible to work with us."

Maurice de Bunsen, Ambassador at Vienna, telegraphed that Count
Berchtold, Minister for Foreign Affairs, declared Austria-Hungary
could not delay military proceedings against Serbia, and so declined
the mediation proposed.

"Prestige of [Dual] Monarchy was engaged, and nothing could now
prevent conflict."

The Ambassador supplemented this in a longer telegram, giving
details of his interview with Count Berchtold.

Sir Rennell Rodd, Ambassador at Rome, telegraphed an account of an
interview the Marquis di San Giuliano, Prime Minister, had just had
with the Serbian Charge d'Affaires.

If explanations were given of mode in which Austrian agents would
intervene under Articles V and VI of the note to Serbia, Serbia
might still accept the whole note. This explanation could be
imparted, without loss of dignity to Austria, through the powers,
who might then advise Serbia to accept the note without conditions.

The Marquis pointed out a passage in the Austrian note which had
been misinterpreted by Serbia, and so might be used as a basis for
settlement, namely, that regarding cooperation of Austrian agents in
Serbia; this was to be only in investigation, not in judicial or
administrative measures.

Mr. Crackanthorpe, Charge d'Affaires in Serbia, telegraphed from
Nish that he was urging greatest moderation on the Serbian
Government pending mediatory efforts by the powers.

"Two Serbian steamers fired on and damaged, and two Serbian
merchant vessels have been captured by a Hungarian monitor at
Orsova."

This was supplemented by a telegram that war had been declared by
Austria.

Grey telegraphed to Sir Edward Goschen, Ambassador at Berlin,
explaining the nature of his proposed four-power conference. No
suggestion would be put forward that has not previously been
ascertained to be acceptable to Austria and Russia. A direct
exchange of views between these countries is preferable to all other
methods. This the Russian Minister of Foreign Affairs, M. Sazonof,
is reported to have offered. If Austria accepts, the situation will
become less critical. Prince Lichnowsky, German Ambassador at
London, reports that his Government has counseled moderation at
Vienna. This is very satisfactory.

A supplementary telegram read:

"German Government, having accepted principle of mediation
between Austria and Russia by th