"Grey has just informed the German Ambassador, who came to question him as to the possibility of taking action at St. Petersburg, that such action ought rather to be taken at Vienna, and that the Berlin Cabinet were the best qualified to do so. Grey also pointed out that the Serbian reply to the Austrian note had exceeded anything that could have been expected in moderation and in its spirit of conciliation. Grey added that he had therefore come to the conclusion that Russia must have advised Belgrade to return a moderate reply, and that he thought the Serbian reply could form the basis of a peaceful and acceptable solution of the question.
"In these circumstances, continued Grey, if Austria were to begin hostilities in spite of that reply, she would prove her intention of crushing Serbia. Looked at in this light, the question might give rise to a situation which might lead to a war in which all the powers would be involved.
"Grey finally declared that the British Government were sincerely anxious to act with the German Government as long as the preservation of peace was in question; but, in the contrary event, Great Britain reserved to herself full liberty of action."
Great Britain. Sir Maurice de Bunsen, Ambassador at Vienna, telegraphed to Sir Edward Grey, Secretary for Foreign Affairs at London, that he had consulted with his colleagues about the mediation of the four powers, and the impression was that the note to Serbia was intentionally drawn to make war inevitable, and, until Serbia had been punished, no proposals for mediation would be listened to.
"This country has gone wild with joy at the prospect of war with Serbia, and its postponement or prevention would undoubtedly be a great disappointment.
"I propose, subject to any special directions you desire to send me, to express to the Austrian Minister for Foreign Affairs the hope of his majesty's Government that it may yet be possible to avoid war, and to ask his excellency whether he cannot suggest a way out even now."
Sir Francis Bertie, Ambassador at Paris, telegraphed to Grey that France had accepted his proposal for the four-power mediation, and sent the necessary instructions to her representatives at Belgrade, Vienna, and St. Petersburg.
"Instructions have been sent to the French Ambassador at Berlin to concert with his British colleague as to the advisability of their speaking jointly to the German Government. Until it is known that the Germans have spoken at Vienna with some success, it would, in the opinion of the Ministry of Foreign Affairs, be dangerous for the French, Russian, and British Ambassadors to do so."
Sir Edward Goschen, Ambassador at Berlin, telegraphed to Grey:
"Secretary of State [Von Jagow] 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 cooperate 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. Petersburg showed that there was an intention on the part of M. de Sazonof [Russian Minister for Foreign Affairs] to exchange views with Count Berchtold [Austro-Hungarian Minister for Foreign Affairs]. 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.