No. 43.

Sir E. Goschen to Sir Edward Grey.—(Received July 27.)

(Telegraphic.) Berlin, July 27, 1914.

Your telegram of 26th July.

Secretary of State says that conference you suggest would practically amount to a court of arbitration and could not, in his opinion, be called together except at the request of Austria and Russia. He could not therefore fall in with your suggestion, desirous though he was to co-operate for the maintenance of peace. I said I was sure that your idea had nothing to do with arbitration, but meant that representatives of the four nations not directly interested should discuss and suggest means for avoiding a dangerous situation. He maintained, however, that such a conference as you proposed was not practicable. He added that news he had just received from St. Petersburgh showed that there was an intention on the part of M. de Sazonof to exchange views with Count Berchtold. He thought that this method of procedure might lead to a satisfactory result, and that it would be best, before doing anything else, to await outcome of the exchange of views between the Austrian and Russian Governments.

In the course of a short conversation Secretary of State said that as yet Austria was only partially mobilising, but that if Russia mobilised against Germany latter would have to follow suit. I asked him what he meant by "mobilising against Germany." He said that if Russia only mobilised in south, Germany would not mobilise, but if she mobilised in north, Germany would have to do so too, and Russian system of mobilisation was so complicated that it might be difficult exactly to locate her mobilisation. Germany would therefore have to be very careful not to be taken by surprise.

Finally, Secretary of State said that news from St. Petersburgh had caused him to take more hopeful view of the general situation.

No. 56.

Sir M. de Bunsen to Sir Edward Grey.—(Received July 28.)

(Telegraphic.) Vienna, July 27, 1914.