e 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 mobilisation 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
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 mobilised they would have to
mobilise 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 way he had done.

No. 101.

_Sir Edward Grey to Sir E. Goschen_.

(Telegraphic.) _Foreign Office, July_ 30, 1914.

Your telegram of 29th July.[188]

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