were to tolerate such a
state of affairs.

"M. Sazonof told us that absolute proof was in possession of
Russian Government that Germany was making military and naval
preparations against Russia--more particularly in the direction
of the Gulf of Finland.

"German Ambassador had a second interview with Minister for
Foreign Affairs at 2 a. m., when former completely broke down on
seeing that war was inevitable. He appealed to M. Sazonof to make
some suggestion which he could telegraph to German Government as
a last hope. M. Sazonof accordingly drew up and handed to German
Ambassador a formula.

"'If Austria, recognizing that her conflict with Serbia has
assumed character of question of European interest, declares
herself ready to eliminate from her ultimatum points which
violate principle of sovereignty of Serbia, Russia engages to
stop all military preparations.'

"Preparations for general mobilization will be proceeded with if
this proposal is rejected by Austria, and inevitable result will
be a European war. Excitement here has reached such a pitch that,
if Austria refuses to make a concession, Russia cannot hold back,
and now that she knows that Germany is arming, she can hardly
postpone, for strategical reasons, converting partial into
general mobilization."

Ambassador Goschen telegraphed from Berlin to Grey:

"Secretary of State [Von Jagow] informs me that immediately on
receipt of Prince Lichnowsky's [German Ambassador in London]
telegram recording his last conversation with you he asked
Austro-Hungarian Government whether they would be willing to
accept mediation on basis of occupation by Austrian troops of
Belgrade or some other point and issue their conditions from
here. He has up till now received no reply, but he fears Russian
mobilization against Austria will have increased difficulties, as
Austria-Hungary, who has as yet only mobilized against Serbia,
will probably find it necessary also against Russia. Secretary of
State says if you can succeed in getting Russia to agree to above
basis for an arrangement and in persuading her in the meantime to
take no steps which might be regarded as an act of aggression
against Austria he still sees some chance that European peace may
be preserved.

"He begged me to impr