German battle-cruiser Goeben and fast light cruiser Breslau have been found west of Sicily and are being shadowed by British battle-cruisers Indomitable and Indefatigable. It would be a great misfortune to lose these vessels as is possible in the dark hours. She is evidently going to interfere with the French transports which are crossing to-day.

The following telegram has already been sent:—

‘Good. Hold her. War imminent.’

We wish to add this:—

‘If Goeben attacks French transports you should at once engage her.’

An immediate decision is required.

W. S. C.

Sir Edward Grey agreed to this and so did the Prime Minister, but the latter asked that it should be mentioned to the Cabinet, which was meeting almost immediately, for their confirmation. On this I sent, before going to the Cabinet, the following:—

‘If Goeben attacks French transports you should at once engage her. You should give her fair warning of this beforehand.’

The Cabinet, however, adhered formally to the view that no act of war should be committed by us before the expiration of the ultimatum. The moral integrity of the British Empire must not be compromised at this solemn moment for the sake of sinking a single ship.