The French nation is certainly doing marvellous things in this war, but the Government cannot sustain the enormous burden after it reaches a certain limit. A reaction in the temper of France, which is kept up by artificial means, is inevitable.

As regards our own internal situation, I do not under-estimate the difficulties presented by the inevitable results of the severe fighting and the exclusion from the seas. But I firmly believe that we shall succeed in overcoming these difficulties without permanently endangering the nation's strength and general welfare, without any further crises and without menace to Government organisation.

Although we are justified in viewing the total situation in a favourable light, I am nevertheless in complete agreement with Count Czernin in pursuing the aim of bringing about as speedily as possible an honourable and, in the interests of the Empire and of our Allies, just peace. I also share his opinion that the important factor of the weakening of Russia must be exploited, and that a fresh tentative offer for peace must be put forward at a time when both political and military initiative are still in our hands. Count Czernin estimates a suitable time will be in two or three months, when the enemy offensive will be at an end. As a matter of fact, in view of the French and English expectations of the decisive success for their offensive, and the Entente not having lost all hopes of Russia resuming her activities, any too pronounced preparations for peace would not only be doomed to failure, but would put new life into the enemy by revealing the hopeless exhaustion of the Central Powers' forces. At the present moment a general peace could only be bought by our submission to the will of the enemy. A peace of that nature would not be tolerated by the people and would lead to fatal dangers for the Monarchy. It appears to me that quiet determination and caution as regards the outer world are more than ever an imperative necessity. The development of affairs in Russia has hitherto been favourable for us. Party disputes are kept more and more within the narrow limits of peace and war questions by political, economic and social exigencies, and the impression grows every day that the party which makes for peace with the Central Powers will be the one to remain in power. It is our solemn duty carefully to follow and encourage the process of development and disruption in Russia and to sound the country, not with too obvious haste, but yet with sufficient expert skill to lead to practical peace negotiations. The probability is that Russia will avoid any appearance of treachery towards her Allies, and will endeavour to find a method which will practically lead to a state of peace between herself and the Central Powers, but outwardly will have the appearance of the union of both parties as a prelude to the general peace.

As in July, 1914, we entered regardlessly into a loyal alliance with Austria-Hungary, in like manner when the world war is at an end will a basis be found for terms which will guarantee a prosperous peace to the two closely united Monarchies.

This optimistic reply of Bethmann's was obviously not only based on the idea of infusing more confidence in the future in us, but was also the true expression of a more favourable atmosphere prevailing, as Berlin naturally received the same reports from the enemy countries as we did.

I received about that time a letter from Tisza which contained the following passage:—

The varied information received from the enemy countries leaves no doubt that the war is drawing to a close. It is now above all essential to keep a steady nerve and play the game to the end with sangfroid. Let there be no signs of weakness. It is not from a love of humanity in general that our enemies have become more peacefully inclined, but because they realise that we cannot be crushed.

I beg of you no longer to give vent to the sentiments in your report of April 12. A pessimistic tendency evinced now by the leader of our foreign affairs would ruin everything. I know that you are prudent, but I beg you to use your influence so that both His Majesty and his entourage may show a confident front to the world. And again, no one will have anything to say to us if they cease to believe in our powers of resistance—and are not persuaded that our Alliance rests on a solid foundation.

It was evident that the only right tactics were to make the supremest efforts at the front and throughout the country, on the one hand, in order to hold the situation a little longer, and, on the other, to persuade the enemy that, in spite of the favourable situation, we were prepared for peace without conquest. To appoint Hebel to the German military Commission to carry out this last procedure seemed devoid of sense. Neither did I expect to gain much from recent intervention in the Wilhelmstrasse, and endeavoured therefore to put myself in direct touch with the German Reichstag.

One of my political friends who had numerous and excellent connections with the German Reichstag put himself into communication with different leaders in Berlin and explained to them the situation in the Monarchy. It was understood that this gentleman was not acting for the Ministry, but presenting his own impressions and views. He was enjoined to be very cautious, as any indiscretion might have incalculable consequences. If the Entente were to imagine that we were thinking of ending the war, not for love of peace but because we simply could not hold out any longer, all efforts would have been vain. In that respect, Tisza was perfectly right. It was, therefore, absolutely necessary that the person to whom this delicate mission had been entrusted should act in such a manner as would keep it a secret from the Entente, a manner devoid of weakness and uniting confidence with reasonable war aims, but also in a manner which would enable the Ministry eventually to disavow the advances.