'I have been told by the Russian Ambassador that in German and Austrian circles impression prevails that in any event we would stand aside ... This impression ought, as I have pointed out, to be dispelled by the orders we have given to the First Fleet ... not to disperse for manoeuvre leave. But ... my reference to it must not be taken to mean that anything more than diplomatic action was promised.'[[107]]

On the 29th the question of our neutrality was seriously discussed at both the Courts of St. James and Berlin independently. Sir Edward Grey, in an interview with Prince Lichnowsky, told him 'he did not wish the Ambassador to be misled ... into thinking we should stand aside'. Developing this, Sir Edward Grey solemnly warned the German Ambassador that

'there was no question of our intervening if Germany was not involved, or even if France was not involved, but if the issue did become such that we thought British interests required us to intervene, we must intervene at once, and the decision would have to be very rapid.... But ... I did not wish to be open to any reproach from him that the friendly tone of all our conversations had misled him or his Government into supposing that we should not take action.'[[108]]

Before the news of this had reached Berlin the Imperial Chancellor had made his notorious 'bid for British neutrality' on July 29:—

'He said it was clear, so far as he was able to judge the main principle which governed British policy, that Great Britain would never stand by and allow France to be crushed in any conflict there might be. That, however, was not the object at which Germany aimed. Provided that neutrality of Great Britain were certain, every assurance would be given to the British Government that the Imperial Government aimed at no territorial acquisitions at the expense of France, should they prove victorious in any war that might ensue.

'I questioned his Excellency about the French colonies, and he said he was unable to give a similar undertaking in that respect. As regards Holland ... so long as Germany's adversaries respected the integrity and neutrality of the Netherlands, Germany was ready to give His Majesty's Government an assurance that she would do likewise. It depended on the action of France what operations Germany might be forced to enter upon in Belgium, but when the war was over, Belgian integrity would be respected if she had not sided against Germany.'[[109]]

This request was at once repudiated (July 30) by the British Government:—

'His Majesty's Government cannot for one 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 the 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.