"I said that it seemed to me as if the Austrian Government believed that, even after the Serbian reply, they could make war upon Serbia anyhow, without risk of bringing Russia into the dispute. If they could make war on Serbia and at the same time satisfy Russia, well and good; but, if not, the consequences would be incalculable. I pointed out to him that I quoted this phrase from an expression of the views of the German Government. I feared that it would be expected in St. Petersburg that the Serbian reply would diminish the tension, and now, when Russia found that there was increased tension, the situation would become increasingly serious. Already the effect on Europe was one of anxiety. I pointed out [as an instance of this] that our fleet was to have dispersed to-day, but we had felt unable to let it disperse. We should not think of calling up reserves at this moment, and there was no menace in what we had done about our fleet; but, owing to the possibility of a European conflagration, it was impossible for us to disperse our forces at this moment. It seemed to me that the Serbian reply already involved the greatest humiliation to Serbia that I had ever seen a country undergo, and it was disappointing to me that the reply was treated by the Austrian Government as if it were as unsatisfactory as a blank negative."
Grey informed Sir Rennell Rodd, British Ambassador at Rome, that the Italian Ambassador at London had stated to Sir Arthur Nicholson, Under-Secretary for Foreign Affairs, that Italy agreed to the four-power conference, and that the Marquis di San Giuliano, Italian Minister for Foreign Affairs, would recommend to Germany the suggestion that Russia, Austria-Hungary, and Serbia should suspend military operations pending result of the conference, and would inquire what procedure Germany proposed to be followed at Vienna.
Sir Francis Bertie, Ambassador at Paris, sent Grey a memorandum of M. Bienvenu-Martin's, French Acting Minister for Foreign Affairs, as to steps to be taken to prevent hostilities between Austria-Hungary and Serbia.
M. Jules Cambon, French Ambassador at Berlin, has been requested to act in concert with the British Ambassador there in Grey's plan. M. Paul Cambon, Ambassador at London, has been appointed France's representative in the four-power conference. France is ready to instruct her representatives at St. Petersburg, Vienna, and Belgrade to induce these governments to abstain from hostilities pending the results of the conference.
But M. Bienvenu-Martin considers success of the conference depends on the action Berlin is willing to take at Vienna beforehand.
Sir George Buchanan, Ambassador at St. Petersburg, telegraphed to Grey an account of an interview just had with M. Sazonof, Minister for Foreign Affairs. Sazonof was conciliatory and optimistic.
"Sazonof said he was perfectly ready to stand aside if the powers accepted the proposal for a conference, but he trusted that you would keep in touch with the Russian Ambassador in the event of its taking place."
France. M. Farges, Consul General at Basle, Switzerland, reported to M. Bienvenu-Martin, Acting Minister for Foreign Affairs at Paris, that German officers on leave in this district had been ordered to return to Germany, and that owners of motor cars in Baden had been ordered to be ready to place them at the disposal of the Government, and secrecy enjoined as to the order under penalty of fine. People at Basle are uneasy, and banking facilities restricted.
M. de Fleuriau, Chargé d'Affaires at London, reported to M. Bienvenu-Martin that the German and Austrian Ambassadors there were letting it appear that they were sure Great Britain would preserve neutrality in case of war. Sir Arthur Nicholson, Under-Secretary for Foreign Affairs, had, however, assured Prince Lichnowsky, the German Ambassador, that Great Britain was free to intervene if she judged it expedient. To make this understood in Germany, nevertheless, that Government should be made to know for certain that they will find Great Britain by the side of France and Russia.
M. Paléologue, Ambassador at St. Petersburg, telegraphed that M. Sazonof, Minister for Foreign Affairs, was using conciliatory language to the ambassadors, and was restraining the press, particularly in recommending great moderation toward Germany.