The American Ambassador said to me that this information gave him a little concern. He feared that, coming after the declaration that we had signed last week with France and Russia about carrying on the war in common[100], the peace parties in the United States might be given the impression that Germany was in favour of peace, and that the responsibility for continuing the war was on others.

I said that the agreement that we had made with France and Russia was an obvious one; when three countries were at war on the same side, one of them could not honourably make special terms for itself and leave the others in the lurch. As to mediation, I was favourable to it in principle, but the real question was: On what terms could the war be ended? If the United States could devise anything that would bring this war to an end and prevent another such war being forced on Europe I should welcome the proposal.

The Ambassador said that before the war began I had made suggestions for avoiding it, and that these suggestions had been refused.

I said that this was so, but since the war began there were two further considerations to be borne in mind: We were fighting to save the west of Europe from being dominated by Prussian militarism; Germany had prepared to the day for this war, and we could not again have a great military power in the middle of Europe preparing war in this way and forcing it upon us; and the second thing was that cruel wrong had been done to Belgium, for which there should be some compensation. I had no indication whatever that Germany was prepared to make any reparation to Belgium, and, while repeating that in principle I was favourable to mediation, I could see nothing to do but to wait for the reply of the German Emperor to the question that Mr. Bryan had put to him and for the United States to ascertain on what terms Germany would make peace if the Emperor's reply was favourable to mediation.

The Ambassador made it quite clear that he regarded what the German Ambassador had said as a move in the game. He agreed with what I had said respecting terms of peace, and that there seemed no prospect at present of Germany being prepared to accept them.

I am, &c.,
E. GREY.

A letter from Page to Colonel House gives Page's interpretation of this negotiation:

To Edward M. House
London, September 10, 1914.

MY DEAR HOUSE:

A rather serious situation has arisen: The Germans of course thought that they would take Paris. They were then going to propose a conqueror's terms of peace, which they knew would not be accepted. But they would use their so-called offer of peace purely for publicity purposes. They would say, "See, men of the world, we want peace; we offer peace; the continuance of this awful war is not our doing." They are using Hearst for this purpose. I fear they are trying to use so good a man as Oscar Straus. They are fooling the Secretary.