If explanations were given of mode in which Austrian agents would intervene under Articles V and VI of the note to Serbia, Serbia might still accept the whole note. This explanation could be imparted, without loss of dignity to Austria, through the powers, who might then advise Serbia to accept the note without conditions.
The Marquis pointed out a passage in the Austrian note which had been misinterpreted by Serbia, and so might be used as a basis for settlement, namely, that regarding cooperation of Austrian agents in Serbia; this was to be only in investigation, not in judicial or administrative measures.
Mr. Crackanthorpe, Chargé d'Affaires in Serbia, telegraphed from Nish that he was urging greatest moderation on the Serbian Government pending mediatory efforts by the powers.
"Two Serbian steamers fired on and damaged, and two Serbian merchant vessels have been captured by a Hungarian monitor at Orsova."
This was supplemented by a telegram that war had been declared by Austria.
Grey telegraphed to Sir Edward Goschen, Ambassador at Berlin, explaining the nature of his proposed four-power conference. No suggestion would be put forward that has not previously been ascertained to be acceptable to Austria and Russia. A direct exchange of views between these countries is preferable to all other methods. This the Russian Minister of Foreign Affairs, M. Sazonof, is reported to have offered. If Austria accepts, the situation will become less critical. Prince Lichnowsky, German Ambassador at London, reports that his Government has counseled moderation at Vienna. This is very satisfactory.
A supplementary telegram read:
"German Government, having accepted principle of mediation between Austria and Russia by the four powers, if necessary, I am ready to propose that the German Secretary of State should suggest the lines on which this principle should be applied. I will, however, keep the idea in reserve until we see how the conversations between Austria and Russia progress."
Grey telegraphed to Sir George Buchanan, Ambassador at St. Petersburg, his satisfaction over prospect of direct exchange of views between Russia and Austria, and readiness to facilitate this if he knew what Sazonof, Russian Minister for Foreign Affairs, proposes that the ministers at Belgrade do.
"Could he not first mention in an exchange of views with Austria his willingness to cooperate in some such scheme? It might then take more concrete shape."