Secretary of State said that a reassuring feature of situation was that Count Berchtold had sent for Russian representative at Vienna and had told him that Austria-Hungary had no intention of seizing Servian territory.  This step should, in his opinion, exercise a calming influence at St. Petersburgh.  I asked whether it was not to be feared that, in taking military action against Servia, Austria would dangerously excite public opinion in Russia.  He said he thought not.  He remained of opinion that crisis could be localised.  I said that telegrams from Russia in this morning’s papers did not look very reassuring, but he maintained his optimistic view with regard to Russia.  He said that he had given the Russian Government to understand that last thing Germany wanted was a general war, and he would do all in his power to prevent such a calamity.  If the relations between Austria and Russia became threatening, he was quite ready to fall in with your suggestion as to the four Powers working in favour of moderation at Vienna and St. Petersburgh.

Secretary of State confessed privately that he thought the note left much to be desired as a diplomatic document.  He repeated very earnestly that, though he had been accused of knowing all about the contents of that note, he had in fact had no such knowledge.

No. 41.

Sir M. de Bunsen to Sir Edward Grey.—­(Received July 27.)

(Telegraphic.) Vienna, July 27, 1914.

I have had conversations with all my colleagues representing the Great Powers.  The impression left on my mind is that the Austro-Hungarian note was so drawn up as to make war inevitable; that the Austro-Hungarian Government are fully resolved to have war with Servia; that they consider their position as a Great Power to be at stake; and that until punishment has been administered to Servia it is unlikely that they will listen to proposals of mediation.  This country has gone wild with joy at the prospect of war with Servia, and its postponement or prevention would undoubtedly be a great disappointment.

I propose, subject to any special directions you desire to send me, to express to the Austrian Minister for Foreign Affairs the hope of His Majesty’s Government that it may yet be possible to avoid war, and to ask his Excellency whether he cannot suggest a way out even now.

No. 43.

Sir E. Goschen to Sir Edward Grey.—­(Received July 27.)

(Telegraphic.) Berlin, July 27, 1914.

Your telegram of 26th July.