I said that this was so, but since the war began there were two further considerations to be borne in mind:  We were fighting to save the west of Europe from being dominated by Prussian militarism; Germany had prepared to the day for this war, and we could not again have a great military power in the middle of Europe preparing war in this way and forcing it upon us; and the second thing was that cruel wrong had been done to Belgium, for which there should be some compensation.  I had no indication whatever that Germany was prepared to make any reparation to Belgium, and, while repeating that in principle I was favourable to mediation, I could see nothing to do but to wait for the reply of the German Emperor to the question that Mr. Bryan had put to him and for the United States to ascertain on what terms Germany would make peace if the Emperor’s reply was favourable to mediation.

The Ambassador made it quite clear that he regarded what the German Ambassador had said as a move in the game.  He agreed with what I had said respecting terms of peace, and that there seemed no prospect at present of Germany being prepared to accept them.

     I am, &c.,
     E. GREY.

A letter from Page to Colonel House gives Page’s interpretation of this negotiation: 

     To Edward M. House
     London, September 10, 1914.

     MY DEAR HOUSE: 

A rather serious situation has arisen:  The Germans of course thought that they would take Paris.  They were then going to propose a conqueror’s terms of peace, which they knew would not be accepted.  But they would use their so-called offer of peace purely for publicity purposes.  They would say, “See, men of the world, we want peace; we offer peace; the continuance of this awful war is not our doing.”  They are using Hearst for this purpose.  I fear they are trying to use so good a man as Oscar Straus.  They are fooling the Secretary.

Every nation was willing to accept Sir Edward Grey’s proposals but Germany.  She was bent on a war of conquest.  Now she’s likely to get licked—­lock, stock and barrel.  She is carrying on a propaganda and a publicity campaign all over the world.  The Allies can’t and won’t accept any peace except on the condition that German militarism be uprooted.  They are not going to live again under that awful shadow and fear.  They say truly that life on such terms is not worth living.  Moreover, if Germany should win the military control of Europe, she would soon—­that same war-party—­attack the United States.  The war will not end until this condition can be imposed—­that there shall be no more militarism.

But in the meantime, such men as Straus (a good fellow) may be able to let (by helping) the Germans appear to the Peace people as really desiring peace.  Of course, what they want is to save their mutton.

And if we begin mediation talk now on that basis, we shall not be wanted when a real chance for mediation comes.  If we are so silly as to play into the hands of the German-Hearst publicity bureau, our chance for real usefulness will be thrown away.

     Put the President on his guard.