o arbitration by the powers.

The feeling in Germany was warlike. The tone of the press there was
intimidating, particularly toward Russia. Italy was exercising
moderating influence at Vienna.

M. Bienvenu-Martin notified the French representatives at the above
courts and at Vienna of the contents of the circular note of the
German Government delivered him that day by Baron von Schoen, the
German Ambassador. Said the Acting Foreign Secretary:

"I called the German Ambassador's attention to the fact that
while it might appear legitimate to demand the punishment of all
those who were implicated in the crime of Sarajevo, on the other
hand it seemed difficult to require measures which could not be
accepted, having regard to the dignity and sovereignty of Serbia;
the Serbian Government, even if it was willing to submit to them,
would risk being carried away by a revolution.

"I also pointed out to Herr von Schoen that his note only took
into account two hypotheses: that of a pure and simple refusal or
that of a provocative attitude on the part of Serbia. The third
hypothesis (which would leave the door open for an arrangement)
should also be taken into consideration; that of Serbia's
acceptance and of her agreeing at once to give full satisfaction
for the punishment of the accomplices and full guaranties for the
suppression of the anti-Austrian propaganda so far as they were
compatible with her sovereignty and dignity.

"I added that if within these limits the satisfaction desired by
Austria could be admitted, the means of obtaining it could be
examined; if Serbia gave obvious proof of good will it could not
be thought that Austria would refuse to take part in the
conversation.

"Perhaps they should not make it too difficult for third powers,
who could not either morally or sentimentally cease to take
interest in Serbia, to take an attitude which was in accord with
the wishes of Germany to localize the dispute.

"Herr von Schoen recognized the justice of these considerations
and vaguely stated that hope was always possible. When I asked
him if we should give to the Austrian note the character of a
simple _mise en demeure_, which permitted a discussion, or an
ultimatum, he answered that personally he had no views."

M. Jules Cambon, French Ambassador at Berlin, reported