refused.

I said that this was so, but since the war began there were two
further considerations to be borne in mind: We were fighting to
save the west of Europe from being dominated by Prussian
militarism; Germany had prepared to the day for this war, and we
could not again have a great military power in the middle of Europe
preparing war in this way and forcing it upon us; and the second
thing was that cruel wrong had been done to Belgium, for which
there should be some compensation. I had no indication whatever
that Germany was prepared to make any reparation to Belgium, and,
while repeating that in principle I was favourable to mediation, I
could see nothing to do but to wait for the reply of the German
Emperor to the question that Mr. Bryan had put to him and for the
United States to ascertain on what terms Germany would make peace
if the Emperor's reply was favourable to mediation.

The Ambassador made it quite clear that he regarded what the German
Ambassador had said as a move in the game. He agreed with what I
had said respecting terms of peace, and that there seemed no
prospect at present of Germany being prepared to accept them.

I am, &c.,
E. GREY.

A letter from Page to Colonel House gives Page's interpretation of this
negotiation:

_To Edward M. House_
London, September 10, 1914.

MY DEAR HOUSE:

A rather serious situation has arisen: The Germans of course
thought that they would take Paris. They were then going to propose
a conqueror's terms of peace, which they knew would not be
accepted. But they would use their so-called offer of peace purely
for publicity purposes. They would say, "See, men of the world, we
want peace; we offer peace; the continuance of this awful war is
not our doing." They are using Hearst for this purpose. I fear they
are trying to use so good a man as Oscar Straus. They are fooling
the Secretary.

Every nation was willing to accept Sir Edward Grey's proposals but
Germany. She was bent on a war of conquest. Now she's likely to get
licked--lock, stock and barrel. She is carrying on a propaganda and
a publicity campaign all over the world. The Allies can't and won't
accept any peace except on the condition that German militarism be
uprooted. They are not going to live again under tha