"He then proceeded to make the following strong bid for British neutrality. He said that 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 that he was unable to give a similar undertaking in that respect. As regards Holland, however, his excellency said that, 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 upon 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.
"His excellency ended by saying that ever since he had been Chancellor the object of his policy had been, as you were aware, to bring about an understanding with England; he trusted that these assurances might form the basis of that understanding which he so much desired. He had in mind a general neutrality agreement between England and Germany, though it was of course at the present moment too early to discuss details, and an assurance of British neutrality in the conflict which present crisis might possibly produce, would enable him to look forward to realization of his desire.
"In reply to his excellency's inquiry how I thought his request would appeal to you, I said that I did not think it probable that at this stage of events you would care to bind yourself to any course of action and that I was of opinion that you would desire to retain full liberty."
Grey informed Ambassador Bertie at Paris of a conversation he had had with M. Paul Cambon, the French Ambassador.
I told Cambon that I would inform the German Ambassador Prince Lichnowsky, to-day that he must not suppose by my friendly tone that we should stand aside in event of a general war following failure of efforts to maintain peace. However, I warned Cambon that the case of Serbia was not like that of Morocco, in which we had made a special agreement with France, but one in which we did not feel called to take a hand.
"M. Cambon said that I had explained the situation very clearly. He understood it to be that in a Balkan quarrel, and in a struggle for supremacy between Teuton and Slav we should not feel called to intervene; should other issues be raised, and Germany and France become involved, so that the question became one of the hegemony of Europe, we should then decide what it was necessary for us to do. He seemed quite prepared for this announcement, and made no criticism upon it.
"He said French opinion was calm, but decided. He anticipated a demand from Germany that France would be neutral while Germany attacked Russia. This assurance France, of course, could not give; she was bound to help Russia if Russia was attacked."
Grey telegraphed Ambassador Goschen at Berlin of his conversation with Prince Lichnowsky, in which he had pointed out
"that the Russian Government, while desirous of mediation, regarded it as a condition that the military operations against Serbia should be suspended, as otherwise a mediation would only drag on matters, and give Austria time to crush Serbia. It was, of course, too late for all military operations against Serbia to be suspended. In a short time, I supposed, the Austrian forces would be in Belgrade, and in occupation of some Serbian territory. But even then it might be possible to bring some mediation into existence, if Austria, while saying that she must hold the occupied territory until she had complete satisfaction from Serbia, stated that she would not advance further, pending an effort of the powers to mediate between her and Russia."