influenced by the assurances given by the
German representative at Vienna, who has egged her on throughout
this crisis, has counted on the probable localization of the
dispute with Serbia, and on the possibility of inflicting with
impunity a serious blow upon that country. The declaration by the
Russian Government that Russia could not possibly remain
indifferent in the face of such conduct has caused a great
sensation here."

Count Benckendorff, Russian Ambassador at London, telegraphed to M.
Sazonof:

"Grey has just informed the German Ambassador, who came to
question him as to the possibility of taking action at St.
Petersburg, that such action ought rather to be taken at Vienna,
and that the Berlin Cabinet were the best qualified to do so.
Grey also pointed out that the Serbian reply to the Austrian note
had exceeded anything that could have been expected in moderation
and in its spirit of conciliation. Grey added that he had
therefore come to the conclusion that Russia must have advised
Belgrade to return a moderate reply, and that he thought the
Serbian reply could form the basis of a peaceful and acceptable
solution of the question.

"In these circumstances, continued Grey, if Austria were to begin
hostilities in spite of that reply, she would prove her intention
of crushing Serbia. Looked at in this light, the question might
give rise to a situation which might lead to a war in which all
the powers would be involved.

"Grey finally declared that the British Government were sincerely
anxious to act with the German Government as long as the
preservation of peace was in question; but, in the contrary
event, Great Britain reserved to herself full liberty of action."

_Great Britain._ Sir Maurice de Bunsen, Ambassador at Vienna,
telegraphed to Sir Edward Grey, Secretary for Foreign Affairs at
London, that he had consulted with his colleagues about the
mediation of the four powers, and the impression was that the note
to Serbia was intentionally drawn to make war inevitable, and, until
Serbia had been punished, no proposals for mediation would be
listened to.

"This country has gone wild with joy at the prospect of war with
Serbia, and its postponement or prevention would undoubtedly be a
great disappointment.

"I propose, subject to any special direction