Meanwhile, however, the German Government had definitely made up its mind that the Navy Bill would have to remain as it stood. This was the information Ballin received from the Kaiser and the Chancellor when he returned from London on March 16th.
Sir Ernest Cassel then suggested to the British Government that the negotiations concerning the neutrality agreement should be re-opened as soon as the first excitement caused by the Navy Bill had subsided, which would probably be the case within a few months, and that the interval should be utilized for clearing up the details. In Berlin, however, the discussions were looked upon as having been broken off, as may be seen from the following telegram which the Kaiser sent to Ballin on March 19th in reply to Ballin’s information about his last exchange of telegrams with London:
“Many thanks for letter. The latest proposals arriving here immediately after you had left raised impossible demands and were so offensive in form that they were promptly rejected. Further harm was done by Churchill’s arrogant speech which a large section of the British press justly described as a provocation of Germany. The ‘agreement’ has thus been broken by Great Britain, and we have done with it. The negotiations must be started afresh on quite a different basis. What apology has there been offered to us for the passage in the speech describing our fleet as an article of luxury?
“(Signed) Wilhelm I.R.”
That the negotiations had actually been broken off was confirmed to Ballin by a letter of the Chancellor of the same date:
“Dear Mr. Ballin,
“My cordial thanks for your letter of the 18th. What your friend told Metternich is identical with what he wired you. Churchill’s speech did not come up to my expectations. He really seems to be a firebrand past praying for. The Army and Navy Bills will probably not go up to the Federal Council until the 21st, as the Army Bill requires some amendments at the eleventh hour. Their contents will be published simultaneously.
“My opinion is that our labours will now have to be stopped altogether for some time. The problem before us suffers from the defect that, because of its inherent difficulties, it admits of no solution. I shall always remain sincerely grateful to you for your loyal assistance. When you come to Berlin next time, please don’t forget to call at the Wilhelmstrasse.
“With kindest regards,
“Sincerely yours,
“(Signed) Bethmann-Hollweg.”