ch we had made a special
agreement with France, but one in which we did not feel called to
take a hand.

"M. Cambon said that I had explained the situation very clearly.
He understood it to be that in a Balkan quarrel, and in a
struggle for supremacy between Teuton and Slav we should not feel
called to intervene; should other issues be raised, and Germany
and France become involved, so that the question became one of
the hegemony of Europe, we should then decide what it was
necessary for us to do. He seemed quite prepared for this
announcement, and made no criticism upon it.

"He said French opinion was calm, but decided. He anticipated a
demand from Germany that France would be neutral while Germany
attacked Russia. This assurance France, of course, could not
give; she was bound to help Russia if Russia was attacked."

Grey telegraphed Ambassador Goschen at Berlin of his conversation
with Prince Lichnowsky, in which he had pointed out

"that the Russian Government, while desirous of mediation,
regarded it as a condition that the military operations against
Serbia should be suspended, as otherwise a mediation would only
drag on matters, and give Austria time to crush Serbia. It was,
of course, too late for all military operations against Serbia to
be suspended. In a short time, I supposed, the Austrian forces
would be in Belgrade, and in occupation of some Serbian
territory. But even then it might be possible to bring some
mediation into existence, if Austria, while saying that she must
hold the occupied territory until she had complete satisfaction
from Serbia, stated that she would not advance further, pending
an effort of the powers to mediate between her and Russia."

In a following message Grey related to Goschen a second conversation
with Prince Lichnowsky, in which he told the German Ambassador that,
in event of a general war, the issues might be so great that it
would involve all European interests, and he should not think that
Great Britain would stand aside.

"He said that he quite understood this, but he asked whether I
meant that we should, under certain circumstances, intervene?

"I replied that I did not wish to say that, or to use anything
that was like a threat or an attempt to apply pressure by saying
that, if things became worse, we should intervene. T