May 20, 1914.

Prime Minister.

Sir Edward Grey.

In Madrid at Easter, Sir Ernest Cassel told me that he had received from Herr Ballin a statement to this effect: ‘How I wish that I could get Churchill here during the Kiel Week. Tirpitz will never allow the Chancellor to settle any naval questions, but I know he would like to have a talk with his English colleague on naval matters, and I am sure that if the subject of limiting naval armaments were ever approached in a businesslike way, some agreement would be reached.’ On the same day I received a telegram from the Admiralty, saying that the Foreign Office particularly wished a British squadron to visit German ports simultaneously with other naval visits. Personally I should like to meet Tirpitz, and I think a non-committal, friendly conversation, if it arose naturally and freely, might do good, and could not possibly do any harm. Indeed, after all I have said about a Naval Holiday, it would be difficult for me to repulse any genuine desire on his part for such a conversation. The points I wish to discuss are these:—

1st. My own Naval Holiday proposals and to show him, as I can easily do, the good faith and sound reasons on which they are based. I do not expect any agreement on these, but I would like to strip the subject of the misrepresentation and misunderstanding with which it has been surrounded, and put it on a clear basis in case circumstances should ever render it admissible.

2nd. I wish to take up with him the suggestion which he made in his last speech on Naval Estimates of a limitation in the size of capital ships. Even if numbers could not be touched, a limitation in the size would be a great saving, and is on every ground to be desired. This subject could only be satisfactorily explored by direct personal discussion in the first instance.

3rd. I wish to encourage him to send German ships to foreign stations by showing him how much we wish to do the same, and how readily we shall conform to any dispositions which have the effect of reducing the unwholesome concentration of fleets in Home Waters. Quite apart from the diplomatic aspect, it is bad for the discipline and organisation of both navies, and the Germans fully recognise this.

4th. I wish to discuss the abandonment of secrecy in regard to the numbers and general characteristics (apart from special inventions) of the ships, built and building, in British and German dockyards. This policy of secrecy was instituted by the British Admiralty a few years ago with the worst results for us, for we have been much less successful in keeping our secrets than the Germans. I should propose to him in principle that we gave the Naval Attachés equal and reciprocal facilities to visit the dockyards and see what was going on just as they used to do in the past. If this could be agreed upon it would go a long way to stopping the espionage on both sides which is a continued cause of suspicion and ill-feeling.

I hope, in view of the very strong feeling there is about naval expenditure and the great difficulties I have to face, my wish to put these points to Admiral von Tirpitz if a good opportunity arises, and if it is clear that he would not resent it, may not be dismissed. On the other hand, I do not wish to go to Germany for the purpose of initiating such a discussion. I would rather go for some other reason satisfactory in itself, and let the discussion of these serious questions come about only if it is clearly appropriate....

For the present I suggest that nothing should be done until the Emperor’s invitation arrives; and, secondly, until we hear what Tirpitz’s real wish is.