At the same time I was negotiating in London, with the able support of

Herr von Kuehlmann, about the so-called Bagdad Treaty. The real object of

this was to divide up Asia Minor into spheres of influence, although

this term was anxiously avoided in view of the rights of the Sultan. Sir

E. Grey also repeatedly stated that there were in existence no

agreements with France and Russia about the partition of Asia Minor.

In consultation with a Turkish representative, Hakki Pasha, all economic

questions concerning German undertakings were settled in the main

according to the wishes of the Deutsche Bank. The most important

concession Sir E. Grey made to me personally was the continuation of the

railway as far as Basra. We had dropped this point in favour of the

connection to Alexandretta; up to that time Bagdad had been the terminal

point of the railway. An international commission was to regulate

navigation on the Shatt-el-Arab. We were also to have a share in the

harbour works at Basra, and received rights for the navigation of the

Tigris, which hitherto had been a monopoly of the firm of Lynch.

By this treaty the whole of Mesopotamia as far as Basra was included

within our sphere of influence (without prejudice to already existing

British navigation rights on the Tigris and the rights of the Wilcox

irrigation works), as well as the whole district of the Bagdad and

Anatolian railway.

The coast of the Persian Gulf and the Smyrna-Aidin railway were

recognised as the British economic sphere, Syria as the French, and

Armenia as the Russian. If both treaties were executed and published, an

agreement with England would be reached which would preclude all doubts

about the possibility of an "Anglo-German co-operation."

THE QUESTION OF THE NAVY

The Naval question was and is the most delicate of all. It is not always

regarded rightly.

The creation of a powerful fleet on the other side of the North Sea--the

development of the greatest military power of the Continent into the

greatest naval power as well--was bound to be felt in England as at

least "inconvenient." There can be no doubt about this in any reasonable

view. In order to maintain her advantage and not to become dependent, in

order to secure the rule over the seas which is necessary for her if she

is not to starve, she was compelled to undertake armaments and

expenditure which weighed heavily on the tax-payer. England's

international position would be threatened, however, if our policy

created the belief that warlike developments might ensue--a state of

affairs which had almost been reached during the time of the Morocco

crises and the Bosnian problem.

Great Britain had become reconciled to our fleet _within its then

appointed limits_, but it was certainly not welcome, and was one of the

causes--though not the only cause and perhaps not the most important--of

her adhesion to France and Russia; but on account of the fleet _alone_

England would not have drawn the sword any more than on account of our

trade, which has been alleged to have produced jealousy and finally war.

From the very beginning I maintained that, _notwithstanding_ the fleet,

it would be possible to arrive at a friendly understanding and

_rapprochement_ if we did not introduce a new Navy Bill and _our policy

were indubitably pacific_. I also avoided mention of the fleet and the

word never passed between Sir E. Grey and me. On one occasion Sir E.

Grey said at a meeting of the Cabinet, "The present German Ambassador

has never mentioned the fleet to me."

During my tenure of office Mr. Churchill, then First Lord of the

Admiralty, proposed, as is known, the so-called "Naval holiday" and

suggested for financial reasons, and probably also to meet the pacific

wishes of his party, a year's pause in armaments. Officially Sir E. Grey

did not support the proposal; he never mentioned it to me, but Mr.

Churchill repeatedly spoke to me about it.

I am convinced that his suggestion was honest, as prevarication is

altogether foreign to English nature. It would have been a great success

for Mr. Churchill if he could have come before the country with

reductions of expenditure and freed it from the nightmare of armaments

that weighed on the people.

I replied that for technical reasons it would be difficult to agree to

his plan. What was to become of the workmen who were engaged for this

purpose, and what of the technical staff? Our Naval programme had been

decided on, and it would be difficult to alter it in any way. On the

other hand we had no intention of exceeding it. But he reverted to it

again and pointed out that the sums used for enormous armaments might

better be employed for other and useful purposes. I replied that this

expenditure too benefited our home industries.

Through interviews with Sit W. Tyrrell, Sir E. Grey's principal private

secretary, I managed to have the question removed from the agenda

without causing any ill-feeling, although it was again referred to in

Parliament, and to prevent any official proposal being made. It was,

however, a pet idea of Mr. Churchill's and the Government's, and I think

that by entering upon his plan and the formula 16:10 for battleships we

might have given tangible proof of our goodwill, and strengthened and

encouraged the tendency (which already prevailed in the Government) to

enter into closer relations with us.

But, as I have said, it was possible to arrive at an understanding _in

spite of the fleet_ and without a "Naval holiday." I had always regarded

my mission from this point of view, and I had also succeeded in

realising my plans when the outbreak of war destroyed everything I had

achieved.

COMMERCIAL JEALOUSY

The "commercial jealousy," about which we hear so much, is based on a

wrong conception of the circumstances. Certainly Germany's rise as a

commercial power after the war of 1870 and during the following decades

was a menace to British commercial circles which, with their industries

and export-houses, had held a virtual monopoly of trade. The increasing

commerce with Germany, which was the leading country in Europe as

regards British exports--a fact to which I invariably referred in my

public speeches--had, however, given rise to the wish to maintain

friendly relations with their best customer and business friend, and had

driven all other considerations into the background.

The Briton is matter-of-fact--he takes things as they are and does not

tilt against windmills. Notably in commercial circles I encountered the

most friendly spirit and the endeavour to further our common economic

interests. As a matter of fact nobody in them took any interest in the

Russian, Italian, Austrian, or even in the French representative, in

spite of his striking personality and his political successes. Only the

German and American Ambassadors attracted public attention.

In order to get into touch with important commercial circles, I accepted

invitations from the United Chambers of Commerce, and from the London

and Bradford Chamber, and was the guest of the cities of Newcastle and

Liverpool. I was well received everywhere; Manchester, Glasgow, and

Edinburgh had also invited me, and I intended to go there later.

People who did not understand British conditions and did not realise the

importance of "public dinners," also people to whom my successes were

unwelcome, reproached me with having done harm with my speeches. I

believe on the contrary that by appearing in public and emphasising

common commercial interests I contributed in no small measure to the

improvement of relations, quite apart from the fact that it would have

been clumsy and churlish to refuse all invitations.

In all other circles I also met with the most friendly reception and

hearty co-operation--at Court, in society, and from the Government.

THE COURT AND SOCIETY

The King, although not a genius, is a simple and well-meaning man with

sound common sense; he demonstrated his goodwill towards me and was

frankly desirous of furthering my task. Although the British

Constitution leaves only very limited powers to the Crown, yet the

monarch, in virtue of his position, can exercise a considerable

influence on opinion both in society and in the Government. The Crown is

the apex of the social pyramid; it sets the fashion. Society, which is

principally Unionist (Conservative), has always taken an active interest

in politics a habit which the ladies share. It is represented in the

House of Lords, the House of Commons, and hence also in the Cabinet. An

Englishman either is a member of society, or he would like to be one. It

is his constant endeavour to be a "Gentleman," and even people of

undistinguished origin, like Mr. Asquith, delight to mingle in society

and the company of beautiful and fashionable women.

The British gentlemen of both parties have the same education, go to

the same colleges and universities, have the same recreations--golf,

cricket, lawn-tennis, or polo. All have played cricket and football in

their youth; they have the same habits of life, and spend the week-end

in the country. There is no social cleavage between the parties, but

only a political one; in recent years it has so far developed into a

social cleavage that the politicians of the two camps avoid social

intercourse with one another. Even on the neutral territory of an

Embassy one did not venture to mingle the two parties, as since the Veto

and Home Rule Bills the Unionists have ostracised the Radicals. When the

King and Queen dined with us a few months after my arrival, Lord

Londonderry left the house after dinner, as he did not wish to remain

together with Sir E. Grey. But it is not a difference of caste or

education as in France; they are not two separate worlds, but the same

world, and the opinion about a foreigner is a common one, and not

without influence on his political position, whether Mr. Asquith be

governing or Lord Lansdowne.

There has been no difference of caste in England since the time of the

Stuarts, and since the Guelphs and Whig oligarchy, in contrast to the

Tory landed gentry encouraged the rise of an urban middle-class. It is

rather a difference of political opinions about questions of

constitutional law and taxation. Especially aristocrats like Grey,

Churchill, Harcourt, Crewe, who joined the people's party--the

Radicals--were most hated by the Unionist aristocracy; one never met any

of these gentlemen at any of the great aristocratic houses, except at

those of a few party friends.

We were received in London with open arms and both parties rivalled one

another in courtesy towards us. In view of the close relationship

between politics and society in England, it would be wrong to

undervalue social relations, even when the majority of the upper ten

thousand are in opposition to the Government.

There is not the same unbridgeable gulf between Mr. Asquith and the Duke

of Devonshire that there is between, say, M. Briand and the Due de

Doudeauville. Certainly they do not consort together in times of great

tension; they belong to two separate social groups, but these are parts

of the _same_ society, though of different grades, the centre of which

is the Court. They have common friends and habits of life; mostly they

have known each other from their youth up and also are frequently

related to one another either by blood or marriage.

Phenomena like Mr. Lloyd George--the man of the people, petty attorney,

and self-made man--are the exception. Even Mr. Burns, the Socialist

Labour leader, and self-educated man, sought contact with society. In

view of the prevailing attempt to rank as a gentleman, whose unattained

prototype is still the great aristocrat, the value of the verdict of

society and its attitude must not be underestimated.

Hence the social adaptability of a representative nowhere plays a

greater role than in England. A hospitable house with pleasant hosts is

worth more than the most profound scientific knowledge; a savant with

provincial manners and small means would gain no influence, in spite of

all his learning.

The Briton loathes a bore, a schemer, and a prig; he likes a good

fellow.

SIR EDWARD GREY

Sir Edward Grey's influence in all matters of foreign policy was almost

unlimited. On important occasions he used indeed to say, "I must first

bring it before the Cabinet"; but this always agreed to his views. His

authority was undisputed. Although he does not know foreign countries

at all, and had never left England except for a short visit to Paris, he

was fully conversant with all the important questions owing to his long

parliamentary experience and his natural insight. He understands French,

but does not speak it. He was returned to Parliament as a young man, and

soon began to interest himself in foreign affairs. Under Lord Rosebery

he was Under-Secretary of State for Foreign Affairs, and became

Secretary of State in 1906, under Mr. Campbell-Bannerman; he has now

held the post for some ten years.

The scion of an old north country family, which had already furnished

Grey, the well-known statesman, he joined the left wing of his party and

sympathised with Socialists and pacifists. You may call him a Socialist

in the ideal sense, as he carries the theory into his private life and

lives very simply and unpretentiously, although he has extensive means.

Ostentation is foreign to him. In London he only had a small house, and

never gave dinners, except the one official dinner at the Foreign Office

on the King's Birthday. On the few occasions when he entertained guests

it was at a simple dinner or lunch with maidservants to wait. Also he

avoided large functions and banquets.

Like his colleagues, he regularly spends his week-ends in the country,

but not with large or fashionable parties. He is mostly by himself in

his cottage in the New Forest, where he takes long walks to study birds

and their ways, as he is a passionate lover of nature and an

ornithologist. Or sometimes he goes to his estate in the north, where he

feeds the squirrels that come in at the windows, and breeds different

species of waterfowl.

He was very fond of going to the Norfolk marshes to watch in their

breeding season the rare kinds of herons, which nest only there.

In his youth he was a well-known cricket and racquet player; now his

favourite pastime is salmon and trout-fishing in Scottish rivers in

company with his friend Lord Glenconner, Mr. Asquith's brother-in-law.

"All the rest of the year I am looking forward to it." He has published

a book on fishing.

On one occasion, when we spent a week-end with him alone at Lord

Glenconner's, near Salisbury, he arrived on a bicycle and returned to

his cottage about thirty miles distant in the same way.

The simplicity and honesty of his ways secured him the esteem even of

his opponents, who were to be found rather in the sphere of home affairs

than of foreign policy. Lies and intrigue are equally repugnant to him.

His wife, to whom he was devotedly attached and from whom he was

inseparable, died in consequence of being thrown from a trap she was

driving. As is generally known, one of his brothers was killed by a

lion.

Wordsworth is his favourite poet, and he could quote much of his poetry.

The calm quiet of his British nature is not lacking in a sense of

humour. Once when he was lunching with us and the children, and heard

them talking German, he said, "I can't help thinking how clever these

children are to talk German so well," and was pleased with his joke.

This is a true picture of the man who is decried as "Liar-Grey" and

instigator of the world-war.

MR. ASQUITH

Mr. Asquith is a man of an entirely different stamp. A jovial

_bon-vivant_, fond of the ladies, especially the young and pretty ones,

he is partial to cheerful society and good cooking; and his zest for

enjoyment is shared by his wife. Formerly a well-known barrister with a

large income, and for a number of years in Parliament, then a Minister

under Mr. Gladstone, a pacifist like his friend Grey, and favouring an

understanding with Germany, he treated all questions with the cheery

calm and assurance of an experienced man of business, whose good health

and excellent nerves were steeled by devotion to the game of golf.

His daughters were at school in Germany and spoke German fluently. In a

short time we got on friendly terms with him and his family, and were

his guests in his small country house on the Thames.

Only on rare occasions did he concern himself with foreign politics,

when important questions arose; then of course his decision was final.

During the critical days of July Mrs. Asquith repeatedly came to us to

warn us, and in the end she was quite distraught at the tragic turn of

events. Mr. Asquith also, when I called on him on the 2nd August to make

a last effort in the direction of expectant neutrality, was quite

broken, though absolutely calm. Tears were coursing down his cheeks.

NICOLSON

Sir A. Nicolson and Sir W. Tyrrell were the two most influential men at

the Foreign Office after the Minister. The former was no friend of ours,

but his attitude towards me was absolutely correct and courteous. Our

personal relations were excellent. He too did not want war; but when we

advanced against France, he no doubt worked in the direction of an

immediate intervention. He was the confidant of my French colleague,

with whom he was in constant touch; also he wished to relieve Lord

Bertie in Paris.

Sir Arthur, who had been Ambassador at Petrograd, had concluded the

treaty of 1907, which had enabled Russia again to turn her attention to

the West and to the Near East.

TYRRELL

Sir W. Tyrrell, Sir Edward's private secretary, possessed far greater

influence than the Permanent Under-Secretary. This highly intelligent

man had been at school in Germany, and had then turned to diplomacy, but

had only been abroad for a short time. At first he favoured the

anti-German policy, which was then in fashion amongst the younger

British diplomatists, but later he became a convinced advocate of an

understanding. He influenced Sir E. Grey, with whom he was very

intimate, in this direction. Since the outbreak of war he has left the

Office and found a place in the Home Office, probably because of the

criticisms passed on him for his Germanophil tendency.

ATTITUDE OF THE GERMAN FOREIGN OFFICE

Nothing can describe the rage of certain gentlemen at my London

successes and the position which I had managed to make for myself in a

short time. They devised vexatious instructions to render my office more

difficult. I was left in complete ignorance of the most important

matters, and was restricted to the communication of dull and unimportant

reports. Secret agents' reports, on matters about which I could not

learn without espionage and the necessary funds, were never available to

me; and it was not till the last days of July, 1914, that I learnt,

quite by chance, from the Naval Attache of the secret Anglo-French

agreement concerning the co-operation of the two fleets in case of war.

The knowledge of other important events which had been known to the

Office for a long time, like the correspondence between Grey and Cambon,

was kept from me.

IN CASE OF WAR

Soon after my arrival I obtained the conviction that under _no_

circumstances had we to fear a British attack or British support for any

foreign attack, but that _under any circumstances England would protect

the French_. I expressed this view in repeated dispatches, with minute

proof and great emphasis, but did not obtain any credence, although Lord

Haldane's refusal to assent to the neutrality formula and England's

attitude during the Morocco crisis had been pretty obvious indications.

In addition there were the secret agreements which I have referred to,

and which were known to the Office.

I always pointed out that in the event of a war between European Powers,

England as a commercial state would suffer enormously, and would

therefore do her best to prevent a conflict; but, on the other hand, she

would never tolerate a weakening or annihilation of France; because of

the necessity of maintaining the European balance of power and of

preventing a German superiority of force. Lord Haldane had told me this

shortly after my arrival, and all the leading people had expressed

themselves in the same sense.

THE SERBIAN CRISIS

At the end of June I went to Kiel by command of the Emperor. A few weeks

prior to this I had been made an honorary D.C.L. of Oxford, an honour

which had not been conferred on any German Ambassador since Herr von

Bunsen. On board the _Meteor_ we learned of the death of the Archduke.

H.M. regretted that his efforts to win him over to his way of thinking

had thus been rendered vain. I do not know whether the plan of an active

policy against Serbia had already been decided on at Konopischt.

As I was not instructed about views and events in Vienna, I did not

attach very great importance to this occurrence. Later on I could only

remark that amongst Austrian aristocrats a feeling of relief outweighed

other sentiments. On board the _Meteor_ there was also an Austrian guest

of the Emperor's, Count Felix Thun. He had remained in his cabin all the

time suffering from sea-sickness, in spite of the splendid weather; but

on receiving the news he was well. The fright or joy had cured him.

On my arrival in Berlin I saw the Chancellor and told him that I

considered the state of our foreign relations very satisfactory, as we

were on better terms with England than we had been for a long time,

whilst in France also the government was in the hands of a pacifist

Ministry.

Herr von Bethmann Hollweg did not appear to share my optimism, and

complained about Russian armaments. I sought to reassure him,

emphasising the fact that Russia had no interest in attacking us, and

that such an attack would never receive Anglo-French support, as both

countries wanted peace. Thereupon I went to Dr. Zimmermann, who was

acting for Herr von Jagow, and he told me that Russia was about to raise

900,000 additional troops. His language betrayed unmistakable annoyance

with Russia, which was "everywhere in our way." There were also

difficulties in economic policy. Of course, I was not told that General

von Moltke was pressing for war; but I learned that Herr von Tschirschky

had been reprimanded because he reported that he had counselled

moderation towards Serbia in Vienna.

On my return from Silesia to London I stopped only a few hours in

Berlin, where I heard that Austria intended to take steps against Serbia

in order to put an end to an impossible situation.

I regret that at the moment I underestimated the importance of the news.

I thought that nothing would come of it this time either, and that

matters could easily be settled, even if Russia became threatening. I

now regret that I did not stay in Berlin and at once declare that I

would not co-operate in a policy of this kind.

Subsequently I ascertained that, at the decisive conference at Potsdam

on the 5th July, the Vienna enquiry received the unqualified assent of

all the leading people, and with the rider that no harm would be done if

a war with Russia should result. Thus it was expressed, at any rate, in

the Austrian protocol which Count Mensdorff received in London. Soon

afterwards Herr von Jagow was in Vienna to consult Count Berchtold about

all these matters.

At that time I received instructions to induce the British Press to

adopt a friendly attitude should Austria administer the _coup de grace_

to the "Great Serbia" movement, and to exert my personal influence to

prevent public opinion from becoming inimical to Austria. If one

remembered England's attitude during the annexation crisis, when public

opinion showed sympathy for the Serbian rights in Bosnia, as well as her

benevolent furtherance of national movements in the days of Lord Byron

and Garibaldi, the probability that she would support the intended

punitive expedition against the murderers of the prince happened so

remote, that I found myself obliged to give an urgent warning. But I

also warned them against the whole plan, which I characterised as

adventurous and dangerous, and advised them to counsel the Austrians to

_moderation_, as I did not believe that the conflict could be localised.

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