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Albert Ballin

Chapter 12: CHAPTER X The War
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About This Book

The biography traces a Hamburg-born shipping executive's rise from early port-life influences to leadership of a major passenger line, detailing commercial strategies, fleet expansion, and technical reorganization. It examines his role in promoting international economic cooperation, his political interventions and relations with national authorities, and his ultimately unsuccessful efforts to prevent national disintegration during wartime. The author draws on company records, personal papers, and eyewitness testimony to reconstruct events and motivations. The work also profiles his personal traits, managerial aesthetics, and public legacy, and includes annotated documents and an index.

“Owing to the brief time at my disposal when I was in Paris, I could only learn the views of the members of the ‘haute finance.’ It is well known that in France the attitude taken up by financial circles is always regarded as authoritative. They look upon the present situation as decidedly pacific; they are pleased that the Morocco affair is settled, and they feel quite sure that the political sky is unclouded by complications. They would gladly welcome an agreement between Germany and Great Britain. My friends assure me that the Government also does not view the idea of such an understanding with displeasure; on the contrary, it looks upon it as an advantage. It is, however, thought unlikely that an agreement will be reached, because it is believed that popular feeling in Germany is too much opposed to it. If, notwithstanding these pacific views held by influential and competent sections, the casual visitor to the French capital is impressed by a certain bellicose attitude of the nation as a whole, it is largely due to the propaganda carried on by the Matin with the purpose of obtaining voluntary subscriptions for the furtherance of aviation. The French are enthusiastic over this idea, and as it has a strong military bearing, the man in the street likes to connect the French aviation successes with a victorious war.”

From London Ballin sent me some telegrams which I was instructed to pass on to the Chancellor. In these messages he stated that his conversations with the German Ambassador and with Haldane had convinced him that people in London believed that the increase in the number of the crews, if the proposed German Navy Bill became law, would be greater than the figures given by Berlin would make it appear. It would therefore be most desirable to arrange for a meeting of experts to clear up this discrepancy. Ballin’s impression was that the British Cabinet, and also the King, were still favourably disposed to the whole plan, and that the Cabinet was unanimous in this view. A conversation with Churchill, which lasted several hours, confirmed these impressions. In London the increase in the number of the crews had previously been estimated at half of what it would really be, and alarm was felt about the large number of torpedo boats and submarines demanded; but since the German Government had explained that the figures arrived at in London—i.e. those stated in the memorandum which had been addressed to the German Government some time before—were not correct, Churchill had agreed that both sides should nominate experts who would check the figures and put them right. Churchill was anxious to see that the matter was brought to a successful issue, and he was still hoping that a neutrality agreement would induce the German Government to make concessions in regard to the Navy Bill.

When Ballin had satisfied himself as to this state of things, he immediately returned to Berlin, as he did not consider it appropriate that any private person should do anything further for the time being, and as he thought that the conduct of the discussions concerning the neutrality agreement were best left to the Ambassador.

Meanwhile, however, the German Government had definitely made up its mind that the Navy Bill would have to remain as it stood. This was the information Ballin received from the Kaiser and the Chancellor when he returned from London on March 16th.

Sir Ernest Cassel then suggested to the British Government that the negotiations concerning the neutrality agreement should be re-opened as soon as the first excitement caused by the Navy Bill had subsided, which would probably be the case within a few months, and that the interval should be utilized for clearing up the details. In Berlin, however, the discussions were looked upon as having been broken off, as may be seen from the following telegram which the Kaiser sent to Ballin on March 19th in reply to Ballin’s information about his last exchange of telegrams with London:

That the negotiations had actually been broken off was confirmed to Ballin by a letter of the Chancellor of the same date:

Dear Mr. Ballin,

“My cordial thanks for your letter of the 18th. What your friend told Metternich is identical with what he wired you. Churchill’s speech did not come up to my expectations. He really seems to be a firebrand past praying for. The Army and Navy Bills will probably not go up to the Federal Council until the 21st, as the Army Bill requires some amendments at the eleventh hour. Their contents will be published simultaneously.

“My opinion is that our labours will now have to be stopped altogether for some time. The problem before us suffers from the defect that, because of its inherent difficulties, it admits of no solution. I shall always remain sincerely grateful to you for your loyal assistance. When you come to Berlin next time, please don’t forget to call at the Wilhelmstrasse.

“With kindest regards,
“Sincerely yours,
“(Signed) Bethmann-Hollweg.”

The conviction of the inherent impossibility of solving the problem was shared by many people in Germany—chiefly, of course, by those connected with the Navy; and some critics went so far as to say that Great Britain had never honestly meant to arrive at an understanding, or at any rate that Haldane—whose honesty and sincerity were beyond doubt—was disowned by his fellow-members in the Cabinet.

When Ballin, in compliance with the wishes of the Foreign Office, went to London during the critical period before the outbreak of the war in 1914, he wrote a letter from there to a naval officer of high rank with whom he had been on terms of friendship for years. This document is of interest now because it shows what Ballin’s own standpoint was with regard to the views described in the previous paragraph:

“People over here,” he wrote, “do not believe that negotiations with Great Britain on the subject of a naval agreement could possibly be crowned with success, and you yourself contend that it would have been better if such negotiations had never been started. Your standpoint is that the failure of any efforts in that direction would merely tend to aggravate the existing situation, a point of view with which I entirely concur.

“On the other hand, however, you cannot deny the soundness of the argument that, if the responsible leaders of British naval policy keep expressing their desire to enter into a discussion, the refusal of Germany to do so must cause the British to believe that we are pursuing aims far exceeding those we have openly avowed. My somewhat fatigued brain is unable to see whether the German contention is right or wrong. But naturally, I always look upon things from the business man’s point of view, and so I always think it better to come to some kind of an agreement with a competitor rather than allow him an unlimited measure of expansion. Once, however, I have come to the conclusion that for financial or other reasons this competitor can no longer keep pace with me, his further existence ceases altogether to interest me.

“Thus the views of the expert on these matters and those of the business man run counter to each other, and I am entitled to dismiss this subject without entering upon a discussion of the interesting and remarkable arguments which Winston Churchill put before me last night. I cannot, however, refrain from contradicting by a few brief words the contention that the motives which had prompted the Haldane mission were not sincere. A conversation with Sir Edward Grey the night before last has strengthened this conviction of mine still further. I regard Sir Edward as a serious, honest, and clever statesman, and I am sure you will agree with my view that the Haldane mission has cleared the atmosphere surrounding Anglo-German relations which had become very strained.”

It may be supposed that history, in the meantime, has proved whose standpoint was the correct one: that of the business man or that of the naval expert.

Not much need be said about the subsequent development of events up to the outbreak of the war.

The above-mentioned opinion which the Chancellor held regarding Churchill’s speech of March 18th, 1912, was probably arrived at on the strength of the cabled reports only. Whoever reads the full original text of the speech must fail to find anything aggressive in it, and there was no harm in admitting that it was a perfectly frank and honest statement concerning the naval rivalry of the two Powers. Among other things it contained the suggestion that a “naval holiday” should be agreed upon, i.e. both countries should abstain from building new ships for a definite period. We, at any rate, looked upon Churchill’s speech as a suitable means of making people see what would be the ultimate consequences of the interminable naval armaments. I made a German translation of it which, with the aid of one of the committees for an Anglo-German understanding, I spread broadcast all over the country. However, it proved a complete failure, as there were powerful groups in both countries who contended that the efforts to reconcile the two standpoints could not lead to any positive result, and that the old injunction, si vis pacem, para bellum, indicated the only right solution. Only a master mind could have overcome these difficulties. But Herr v. Bethmann, as we know, considered that the problem, for inherent reasons, did not admit of any solution at all, and the Kaiser’s initial enthusiasm had probably been damped by subsequent influences of a different kind. Ballin himself, in later years, ascribed the failure of the mission to the circumstance that the Kaiser and his Chancellor, between themselves only, had attempted to bring the whole matter to a successful issue instead of entrusting this task to the Secretary of Foreign Affairs and to Admiral Tirpitz, the Secretary for the Navy.

An interesting sidelight on the causes which led to the failure of this last important attempt to reach an understanding is thrown by the rumours which were spread in the German Press in March, 1912, to the effect that the Secretary of State for Foreign Affairs, Herr v. Kiderlen, wished to resign, because he felt that he had been left too much in the dark with regard to the Anglo-German negotiations. It was also reported that the Chancellor’s position had been shaken, and that Admiral Tirpitz felt dissatisfied, because the Navy Bill did not go far enough. Probably there was some vestige of truth in all these rumours, and this may have been connected with the attitude which the three gentlemen concerned had taken up towards the question of the negotiations with Great Britain.

Shortly after the visit of Lord Haldane Ballin received a letter from a personage belonging to the Kaiser’s entourage in which it was said:

“The impression which has taken root with me during the many hours which I spent as an attentive listener is that your broad-minded scheme is being wrecked by our official circles, partly through their clumsiness, and partly through their bureaucratic conceit, and—which is worse—that we have failed to show ourselves worthy of the great opportunity.”

When it had become certain that the last attempt to reach an understanding had definitely and finally failed, the ambassador in London, Count Metternich, did not shrink from drawing the only possible conclusion from it. He had always expressed his conviction that a war between Germany and a Franco-Russian coalition would find Great Britain on the side of Germany’s opponents, and his resignation—which, as usual, was explained by the state of his health—was really due to a report of his in which he stated it as his opinion that a continuation of German armaments would lead to war with Great Britain no later than 1915. It is alleged that the Kaiser added a very “ungracious” marginal note to this report. Consequently, the ambassador, who was a man of very independent character, did the only thing he could consistently do, and resigned his office. In taking this step he may have been influenced by the reception which the failure of the Haldane mission met with in Conservative circles in Great Britain, where no stone was left unturned to urge the necessity for continuing the policy of big armaments and to paint German untrustworthiness in the most glaring colours.

Count Metternich’s successor was Herr v. Marschall, a gentleman whose appointment the Press and the official circles welcomed with great cordiality, and from whose considerable diplomatic abilities, which were acknowledged on all sides, an improvement of Anglo-German relations was confidently expected. It was said that the Kaiser had sent “his best man,” thus demonstrating how greatly he also desired better relations. But Herr v. Marschall’s activities came to a sudden end through his early death in September, 1912, and in October his place was taken by Prince Lichnowsky, whose efforts in the direction of an improvement in the relations are familiar to everyone who has read his pamphlet. Apart from the work performed by the ambassadors, great credit is also due to the activities displayed by Herr v. Kühlmann, the then Secretary to the Legation and subsequent Secretary of State. The public did not see a deal of his work, which was conducted with skill and was consistent. His close personal acquaintance with some of the leading British politicians, especially with Sir Edward Grey, enabled him to do much work for the maintenance of good relations and in the interest of European peace, particularly during the time when the post of ambassador was vacant, and also during the Balkan War. He had, moreover, a great deal to do with the drafting of the two colonial agreements dealing with the Bagdad Railway and the African problems respectively, both of which were ready for signature in the summer of 1914. The former especially may be looked upon as a proof not only that a considerable improvement had taken place in Anglo-German relations, but also that Great Britain was not inclined to adjust the guiding lines of her policy in Asia Minor exclusively in conformity with the wishes of Russia. Anybody who takes an interest in the then existing possibilities of German expansion with the consent of Great Britain and on the basis of these colonial draft agreements cannot do better than read the anonymous pamphlet entitled “Deutsche Weltpolitik und kein Krieg” ("German World Power and No War"), published in 1913 by Messrs. Puttkamer & Mühlbrecht, of Berlin. The author is Dr. Plehn, the then representative of the Cologne Gazette in London, and it partly reflects the views of Herr v. Kühlmann.

In this connexion I should like to refer briefly to an episode which took place towards the close of 1912. The German periodicals have already discussed it, especially the Süddeutsche Monatshafte in June, 1921, in a review of the reports which Count Lerchenfeld, the Bavarian minister to the Court of Berlin, had made for the information of his Government. In these reports he mentions an event to which the Kaiser had already referred in a letter to Ballin dated December 15th, 1912. The Kaiser, in commenting on the state of tension then existing between Austria and Serbia, made some significant remarks concerning the policy of Germany towards Austria-Hungary. When the relations between Vienna and Petrograd, he wrote, had assumed a dangerous character, because it was recognized that the attitude of Serbia was based on her hope of Russian support, Germany might be faced with the possibility of having to come to the assistance of Austria.

“The Slav subjects of Austria,” the letter continued, “had become very restless, and could only be brought to reason by the resolute action of the whole Dual Monarchy against Serbia. Austria had arrived at the cross roads, and her whole future development hung in the balance. Either the German element would retain its ascendancy, in which case she would remain a suitable ally, or the Slav element would gain the upper hand, and she would cease to be an ally altogether. If we were compelled to take up arms, we should do so to assist Austria not only against Russian aggression, but also against the Slavs in general, and in her efforts to remain German. That would mean that we should have to face a racial struggle of the Germanic element against Slav insolence. It is beyond our power to prevent this struggle, because the future of the Habsburg monarchy and that of our own country are both at stake. (This was the real meaning of Bethmann’s very plain speaking.) It is therefore a question on which depends the very existence of the Germanic race on the continent of Europe.

“It was of great importance to us that Great Britain had so far supported the Austro-German standpoint in these matters. Now, since a war against Russia would automatically imply a war with France as well, it was of interest to us to know whether, in this purely continental case, Great Britain could and would declare her neutrality in conformity with her proposals of last February.

“On December 6th, Haldane, obviously sent by Grey, called on Lichnowsky and explained to the dumbfounded ambassador in plain words that, assuming Germany getting involved in war against Russia and France, Great Britain would not remain neutral, but would at once come to the assistance of France. The reason given for this attitude was that Britain could not and would not tolerate at any time that we should acquire a position of continental predominance which might easily lead to the formation of a united continent. Great Britain could therefore never allow France to be crushed by us. You can imagine the effect of this piece of news on the whole of the Wilhelmstrasse. I cannot say that I was taken by surprise, because I, as you know, have always looked upon Great Britain as an enemy in a military sense. Still, this news has decidedly cleared matters up, even if the result is merely of a negative character.”

Ballin did not omit to ask his friend for some details concerning the visit of Lord Haldane mentioned in the Kaiser’s letter, and was furnished with the following explanation by Lord Haldane himself.

Nothing had been further from his intentions, he said, than to call on Prince Lichnowsky for the express purpose of making any such declaration; and Balkan questions, to the best of his recollection, had not been touched at all. He had spent a very pleasant half-hour with the Prince, and in the course of their conversation he had seen fit to repeat the formula which had been discussed during his stay in Berlin, and which referred to Britain’s interest in the preservation of the integrity of France. This, possibly, might have given rise to the misunderstanding.

Prince Lichnowsky himself, in his pamphlet entitled “My London Mission,” relates the incident as follows:

“In my dispatches sent to Berlin I pointed out again and again that Great Britain, being a commercial country, would suffer enormously through any war between the European Powers, and would prevent it by every means within her power. At the same time, however, she could never tolerate the weakening or the crushing of France, because it would disturb the Balance of Power and replace it by the ascendancy of Germany. This view had been expressed to me by Lord Haldane shortly after my arrival, and everybody whose opinion counts for anything told me the same thing.”

The failure of the negotiations aiming at an understanding led to a continuance of the increase in the British armaments, a concentration of the British battle fleet in the North Sea, and to that of the French fleet in the Mediterranean. The latter arrangement was looked upon in Germany as a menace directed against Italy, and produced a sharp semi-official criticism in the Frankfurter Zeitung. In spite of all this, however, friendly messages from London concerning the possibilities of an understanding, the “naval holiday,” etc., reached Germany from time to time.

How closely Ballin clung to his favourite idea that the naval experts of both countries should come to an understanding is demonstrated by the circumstance that in 1914, when the British squadron was present during the Kiel yachting week, he tried to bring about a meeting and a personal exchange of views between Churchill and Tirpitz.

Churchill was by no means disinclined to come to Germany for this purpose, but unfortunately the desire was expressed by the German side, and especially by the Kaiser, that the British Government should make an official inquiry whether his visit would be welcomed. The Government, however, was not disposed to do so, and the whole thing fell through, although Churchill sent word that, if Tirpitz really wanted to see him, he would find means to bring about such a meeting.

Thus the last attempt at an understanding had resulted in failure, and before any further efforts in the same direction could be made, Europe had been overtaken by its fate.

CHAPTER IX

The Kaiser

The origin of the friendship between Ballin and the Kaiser, which has given rise to so much comment and to so many rumours, was traced back by the Kaiser himself to the year 1891, when he inspected the express steamer Auguste Victoria, and when he, accompanied by the Kaiserin, made a trip on board the newly-built express steamer Fürst Bismarck. Ballin, although he received the honour of a decoration and a few gracious words from His Majesty, did not think that this meeting had established any special contact between himself and his sovereign. He told me, indeed, that he dated their acquaintance from a memorable meeting which took place in Berlin in 1895, and which was concerned with the preparations for the festivities in celebration of the opening of the Kiel Canal.

The Kaiser wanted the event to be as magnificent as possible, and his wishes to this effect were fully met by the Hamburg civic authorities and by the shipping companies. Although Ballin had only been a short time in the position he then held, his versatile mind did not overlook the opportunity thus offered for advertising his company. The Kaiser was keenly interested in every detail. After some preliminary discussions with the Hamburg Senate, all the interested parties were invited to send their delegates to Berlin, where a general meeting was to be held in the Royal Castle with the Kaiser in the chair. It was arranged that the North German Lloyd and the Hamburg-Amerika Linie should provide one steamer each, which was to convey the representatives of the Government departments and of the Reichstag, as well as the remaining guests, except those who were to be accommodated on board the Hohenzollern, and that both steamers should follow in the wake of the latter all the way down the Elbe from Hamburg to the Canal. When this item was discussed the Kaiser said he had arranged that the Hohenzollern should be followed first by the Lloyd steamer and then by the Hamburg-Amerika liner. Thereupon Ballin asked leave to speak. He explained that, since the journey was to start in Hamburg territorial waters, it would perhaps be proper to extend to the Hamburg company the honour of the position immediately after the Imperial yacht. The Kaiser, in a tone which sounded by no means gracious, declared that he did not think this was necessary, and that he had already given a definite promise to the Lloyd people. Ballin replied that, if the Kaiser had pledged his word, the matter, of course, was settled, and that he would withdraw his suggestion, although he considered himself justified in making it.

At the close of the meeting Count Waldersee, who had been one of those present, took Ballin’s arm and said to him: “As you are now sure to be hanged from the Brandenburger Tor, let us go to Hiller’s before it comes off, to have some lunch together.” Ballin never ceased to be grateful to the Count for this sign of kindness, and his friendship with him and his family lasted until his death. The arrangements made by the Hamburg-Amerika Linie for the reception of its guests were carefully prepared and carried out. It is not easy to give an idea to a non-expert of the great many minute details which have to be attended to in order to accommodate a large number of exacting visitors on a steamer in such a manner that nobody finds anything to complain of, especially if, as is but natural on an occasion such as this, an endless variety of questions as to precedence and etiquette have to be taken into account. Great pains and much circumspection are necessary to arrange to everybody’s satisfaction all matters affecting the reception of the guests, the provision of food and drinks, the conveyance of luggage, etc. Thanks to the infinite care, however, with which Ballin and his fellow-workers attended to this matter, everything turned out eminently satisfactory. In the evening, when the guests of the Hamburg-Amerika Linie were returning to their steamer at the close of the festivities, the company agreeably surprised them by providing an artistically arranged collation of cold meats, etc., and the news of this spread so quickly that from the other vessels people who felt that the official catering had not taken sufficient account of their appetites, lost no time in availing themselves of this opportunity of a meal.

This event, at any rate, helped to establish the reputation of the company’s hospitality.

It may be presumed that this incident had shown the Kaiser—who, although he did not object to being contradicted in private, could not bear it in public—that the Hamburg Company was animated by a spirit of independence which did not subordinate itself to other influences without a protest, and which jealously guarded its position. It must be stated that the Kaiser never bore Ballin any ill will on account of his opposition, which may be partly due to the great pains the Packetfahrt took in order to make the festivities a success. The event may also have induced the Kaiser to watch the progress of the Hamburg-Amerika Linie after that with particular attention. His special interest was centred round the provision for new construction, and in this matter he exerted his influence from an early time in favour of the German yards.

The first occasion of the Kaiser’s pleading in favour of German yards dates from the time previous to his accession to the throne. Ballin, in a speech which he delivered when the trial trip of the s.s. Meteor took place, stated the facts connected with this intervention as follows: The directors had just started negotiations with British shipbuilding firms for the building of their first express steamer when the Prussian Minister to the Free City of Hamburg called to inform them, at the request of Prince Bismarck, that the latter, acting upon the urgent representations of Prince Wilhelm, suggested that they should entrust the building of the big vessel to a German yard. The Prince was profoundly convinced that Germany, for the sake of her own future, must cease to play the part of Cinderella among the nations, and that there was no want of engineers among his countrymen who, if given a chance, would prove just as efficient as their fellow-craftsmen in England. The Packetfahrt thereupon entrusted the building of the vessel to the Stettin Vulkan yard. She was the fast steamer Auguste Victoria, and was christened after the young Empress. Launched in 1888, she immediately won “the blue riband of the Atlantic” on her first trip.

Another and still more practical suggestion of the Kaiser was put forward at the time when the company were about to build an excursion steamer. The satisfactory results which their fast steamers had yielded during the dead season in the transatlantic passage business when used for pleasure cruises had induced them to take this step, and when the Kaiser’s attention was drawn to this project, he, on the strength of the experience he had made with his Hohenzollern, designed a sketch and composed a memorandum dealing with the equipment of such a steamer. It was Ballin’s opinion that this Imperial memorandum contained some suggestions worth studying, although it was but natural that the monarch could not be expected to be sufficiently acquainted with all the practical considerations which the company had to bear in mind in order to make the innovation pay, and that, therefore, some of his recommendations could not be carried out.

If we remember what vivid pleasure the Kaiser derived from his own holiday cruises, it cannot surprise us to see that he took such a keen interest in the company’s excursion trips. How keen it was may be inferred from an incident which happened early in his reign, and to which Ballin, when describing his first experiences on this subject, referred in his above-mentioned speech on the occasion of the trial trip of the Meteor. Ballin said: “Even among my most intimate associates people were not wanting who thought that I was not quite right in my mind when, at the head of 241 intrepid travellers, I set out on the first pleasure cruise to the Far East in January, 1891. The Kaiser had just inspected the vessel, and then bade farewell to the company and myself by saying: ‘That’s right. Make our countrymen feel at home on the open sea, and both your company and the whole nation will reap the benefit.’”

In after years the Kaiser’s interest in the company chiefly centred round those landmarks in its progress which marked the country’s expansion in the direction of Weltpolitik, e.g. its participation in the Imperial Mail Service to the Far East, its taking up a share in the African trade, etc. In fact, after 1901, when the Kaiser had keenly interested himself in the establishment of the Morgan Trust and its connexion with German shipping companies, there was scarcely an important event in the history of the company (such as the extension of its services, the addition of a big new steamer, etc.) which he allowed to pass without a few cordial words of congratulation. He also took the liveliest interest in the personal well-being of Ballin. He always sent him the compliments of the season at Christmas or for the New Year, generally in the shape of picture post-cards or photographs from his travels, together with a few gracious words, and he never failed to remember the anniversaries of important events in Ballin’s life or to inquire after him on recovering from an illness. Ballin, in his turn, acquainted the Kaiser with anything which he believed might be of interest to His Majesty, or might improve his knowledge of the economic conditions existing in his own as well as in foreign countries. He kept him informed about all the more important pool negotiations, e.g. those in connexion with the establishment, in 1908, of the general pool, and those referring to the agreements concluded with other German shipping companies, etc. Whenever he noticed on his travels any signs of important developments, chiefly those of a political kind, he furnished his Imperial friend with reports on the foreign situation.

In 1904 the Kaiser’s interest in Ballin took a particularly practical form. Ballin had suffered a great deal from neuralgic pains which, in spite of the treatment of various physicians, did not really and permanently diminish until the patient was taken in hand by Professor Schweninger, the famous medical adviser of no less a man than Bismarck. Ballin himself testified to the unvaried attention and kindness of Dr. Schweninger, and to the great success of his treatment. It is to be assumed that Schweninger, because of his energetic manner of dealing with his patients, was eminently suited to Ballin’s disposition, which was not an easy one for his doctor and for those round him to cope with.

“As early as January, 1904,” Ballin remarks in his notes, “the Kaiser had sent a telegram inviting me to attend the Ordensfest celebrations in Berlin, and during the subsequent levee he favoured me with a lengthy conversation, chiefly because he wanted to tell me how greatly he was alarmed at the state of my health. His physician, Professor Leuthold, had evidently given him an unfavourable account of it. The Kaiser explained that he could no longer allow me to go on without proper assistance or without a substitute who would do my work when I was away for any length of time. This state of things caused him a great deal of anxiety, and, as it was a matter of national interest, he was bound to occupy himself with this problem. He did not wish to expose himself to a repetition of the danger—which he had experienced in the Krupp case—that a large concern like ours should at any moment be without a qualified steersman at the helm. He said he knew that of all the gentlemen in his entourage Herr v. Grumme was the one I liked best, and that I had an excellent opinion of him. He also considered Grumme the best man he had ever had round him, and it would be difficult to replace him. Nevertheless he would be glad to induce Grumme to join the services of the Hamburg-Amerika Linie, if I thought that this would solve the difficulty he had just referred to, and that such a solution would fall in with my own wishes. He was convinced that I should soon be restored to my normal health if I were relieved of some part of my work, and that this would enable me to do much useful service to the nation and himself; so he would be pleased to make the sacrifice. I sincerely thanked His Majesty, and assured him that I could not think of any solution that I should like better than the one he had proposed, and that, if he were really prepared to do so much for me, I would beg him to discuss the matter with Grumme. That very evening he sent for Grumme, who immediately expressed his readiness to enter the services of our company if such was His Majesty’s pleasure.”

The lively interest which the Kaiser took in the development of our mercantile marine was naturally closely connected with the growth of the Imperial Navy and with our naval policy in general. The country’s maritime interests and the merchant fleet were the real motives that prompted his own naval policy, whereas Tirpitz chiefly looked upon them as a valuable asset for propaganda purposes. During the first stage of the naval policy and of the naval propaganda—which at that time were conducted on quite moderate lines—Ballin, as he repeatedly told me, played a very active part. It was the time when the well-known periodical Nautikus, afterwards issued at regular annual intervals, was first published by the Ministry for the Navy, and when a very active propaganda in favour of the navy and of the country’s maritime interests was started. Experience has proved how difficult it is to start such a propaganda, especially through the medium of a Press so loosely organized as was the German Press in those days. But it is still more difficult to stop, or even to lessen, such propaganda once it has been started, because the preliminary condition for any active propaganda work is that a large number of individual persons and organizations should be interested in it. It is next to impossible to induce these people to discontinue their activities when it is no longer thought desirable to keep up the propaganda after its original aim has been achieved. Germany’s maritime interests remained a favourite subject of Press discussions, and the animation with which these were carried on reached a climax whenever a supplementary Navy Bill was introduced. Even when it was intended to widen the Kiel Canal, as it proved too narrow for the vessels of the “Dreadnought” type, the necessity for doing so was explained by reference to the constantly increasing size of the new steamers built for the mercantile marine; although, seeing that the shallow waters of the Baltic and of the channels leading into it made it quite impossible to use them for this purpose, nobody ever proposed to send those big ships through the canal. In later years Ballin often spoke with great bitterness of those journalists who would never leave off writing about “the daring of our merchant fleet” in terms of unmeasured eulogy, and whom he described as the greatest enemies of the Hamburg-Amerika Linie.

But it was not only the propaganda work for the Imperial Navy to which the Kaiser contributed by his own personal efforts: the range of his maritime interests was much wider. He gave his assistance when the problems connected with the troop transports to the Far East and to South West Africa were under discussion; he studied with keen attention the progress of the German mercantile marine, the vessels of which he frequently met on his travels; he often went on board the German tourist steamers, those in Norwegian waters for instance, when he would unfailingly make some complimentary remarks on the management, and he became the lavish patron of the sporting events known as Kiel Week, the scope of which was extending from year to year. The Kiel Week, originally started by the yachting clubs of Hamburg for the encouragement of their sport, gradually developed into a social event of the first order, and since 1902 it became customary for the Hamburg-Amerika Linie to dispatch one of their big steamers to Kiel, where it served as a hotel ship for a large number of the visitors. From 1897 Kiel Week was preceded by a visit of the Kaiser—and frequently of the Kaiserin as well—to Hamburg, where their Majesties attended the summer races and the yachting regatta on the lower Elbe. In 1897 the Kaiser had the intention of being present at a banquet which the Norddeutsche Regatta-Verein was giving on board the Packetfahrt liner Columbia, and he was only prevented from doing so at the last moment. In the following year the Hamburg-Amerika Linie sent their s.s. Pretoria to Kiel. On this vessel the well-known “Regatta dinner” took place which the Kaiser attended, and which, on future occasions, he continued to honour with his presence. Ballin received a special invitation to visit the Kaiser on board his yacht Hohenzollern. He could not, however, avail himself of it, because the message only reached him on his way home to Hamburg. The year after, the Kaiser commanded Ballin to sit next to him at the table, and engaged him in a long conversation on the subject of the load-line which he wanted to see adopted by German shipping firms for their vessels. The Packetfahrt carried this suggestion into practice shortly afterwards, and in course of time the other companies followed suit.

On the occasion of these festivities the Kaiser in 1904 paid a visit to the new premises of the Hamburg-Amerika Linie. In 1905 and in subsequent years he also visited Ballin’s private home and took lunch with him. The speeches which he made at the regatta dinners given in connexion with the regatta on the lower Elbe frequently contained some political references. In 1908, for instance, he said:

“Although we do not possess such a navy as we ought to have, we have gained a place in the sun. It will now be my duty to see to it that we shall keep this place in the sun against all comers.... I, as the supreme head of the Empire, can only rejoice whenever I see a Hanseatic citizen—let him be a native of Hamburg, or Bremen, or Lübeck—striking out into the world with his eyes wide open, and trying to find a spot where he can hammer a nail into the wall from which to hang the tools needed to carry on his trade.”

In 1912 he quoted the motto from the Lübeck Ratskeller:

“It is easy to hoist the flag, but it costs a great deal to haul it down with honour.”

And in 1914, after the launch of the big steamer Bismarck, he quoted Bismarck’s saying, slightly altered:

“We Germans fear God, but nothing and nobody besides.

Kiel Week never passed without a great deal of political discussion. The close personal contact on such occasions between Ballin and the Kaiser furnished the former with many an opportunity for expressing his views on politics. Much has been said about William II’s “irresponsible advisers,” who are alleged to have endeavoured to influence him in the interests of certain cliques, and it cannot, of course, be denied that the men who formed the personal entourage of the monarch were very far from representing every shade of public opinion, even if that had been possible. The traditions of the Prussian Court and of princely education may have contributed their share to this state of things. The result, at any rate, was that in times of crises—as, for instance, during the war—it was impossible to break through the phalanx of men who guarded the Kaiser and to withdraw him from their influence. Events have shown how strong this influence must have been, and how little it was suited to induce the Kaiser to apply any self-criticism to his preconceived ideas. Added to this, there was the difficulty of obtaining a private conversation with the Kaiser for any length of time—a difficulty which was but rarely overcome even by persons possessing very high credentials. It has already been mentioned that the Kaiser did not like to be contradicted in the presence of others, because he considered it derogatory to his sovereign position. Ballin repeatedly succeeded in engaging the Kaiser in private conversations of some length, especially after his journeys abroad, when the Kaiser invited him to lunch with him, and afterwards to accompany him on a walk unattended.

Ballin’s notes more than once refer to such conversations with the Kaiser, e.g. on June 3rd, 1901, when he had been a member of the Imperial luncheon party:

“After lunch the Kaiser asked me to report on my trip to the Far East, and he, in his turn, told me some exceedingly interesting pieces of news relating to his stay in England, and to political affairs connected with it.”

The following passage, referring to the Kiel Week, is taken from the notes of the same year:

“I received many marks of the Kaiser’s attention, who, on July 27th, summoned me to Kiel once more, as he wished to discuss with the Chancellor and me the question of the Japanese bank.”

During his trip to the Far East Ballin had taken a great deal of trouble to bring about the establishment of a German-Japanese bank.

The following extracts are taken from the notes of subsequent years:

“On December 10th (1903) I received a wire asking me to see the Kaiser at the Neues Palais. To my infinite joy the Kaiser had quite recovered the use of his voice. He looked well and fit, and during a stroll through the park I had a long chat with him concerning my trip to America and other matters. In February the Kaiser intends to undertake a Mediterranean cruise on board the Hohenzollern for the benefit of his health. He will probably proceed to Genoa on board one of the Imperial mail packets, which is to be chartered for him.”

(April 1904). “The Kaiser had expressed a wish to see me in Italy. On my arrival at Naples I found a telegram waiting for me in which I was asked to proceed to Messina if necessary. Owing, however, to the state of our negotiations with the Russian Government, I did not think it desirable to meet the Kaiser just then, and thus I had no opportunity of seeing him until May 3rd when I was in Berlin to attend a meeting of the Disconto-Gesellschaft, and to confer with Stübel on the question of some further troop transports to South West Africa. I received an invitation to join the Imperial luncheon party at which the birthday of the Crown Prince was to be celebrated in advance, since his Majesty would not be in town on May 6th. The Kaiser’s health had much improved through his cruise; he had lost some of his stoutness, and the Kaiserin, too, was greatly pleased to see him looking so well. We naturally discussed the topics of the day, and the Kaiser, as always, was full of kindness and goodwill towards me.”

“On June 21st, 1904, the usual Imperial Regatta took place at Cuxhaven, and the usual dinner on board the Blücher. These events were followed by Kiel Week, which lasted from June 22nd to 28th. We stayed on board the Victoria Luise, and I was thus brought into especially close contact with the Kaiser. I accompanied him to Eckernförde on board the Meteor, and we discussed the political situation, particularly in its bearing on the Morocco question and on the attitude of Great Britain.”

“On June 19th, 1904, the Kaiser, the Kaiserin, and some of their sons were staying in Hamburg. I dined with them at Tschirschky’s (the Prussian Minister in Hamburg), and we drove to the races. On June 20th we proceeded to Cuxhaven, where, on board the Deutschland, I heard the news—which the Kaiser had just communicated to Kaempff (the captain of the Deutschland)—that the North German Lloyd steamer Kaiser Wilhelm II, in consequence of her being equipped with larger propellers, had won the speed record. Late at night the Kaiser asked me to see him on board the Hohenzollern, where he engaged me in a long discussion on the most varied subjects. On June 21st the regatta took place at Cuxhaven. The Kaiser and Prince Heinrich were amongst the guests who were entertained at dinner on board the Deutschland. The Kaiser was in the best of health and spirits. Owing to the circumstance that Burgomaster Burchard—who generally engages the Kaiser in after-dinner conversation—was prevented by his illness from being present, I was enabled to introduce a number of Hamburg gentlemen to His Majesty. As the Kaiser had summoned me to dine with him on board the Hohenzollern on the 22nd, I could not return to Hamburg, but had to travel through the Kiel Canal that same night on board a tug steamer. On the 22nd I stayed at the club house of the Imperial Yachting Club, whilst at my own house a dinner party was given for 36 persons. On the 23rd I changed my quarters to the Prinzessin Victoria Luise, and the other visitors arrived there about noon. A special feature of Kiel Week of 1904 was the visit of King Edward to the Kaiser whom he met at Kiel. For the accommodation of the ministers of state and of the other visitors whom the Kaiser had invited in connexion with the presence of the King, we had placed our s.s. Prinz Joachim at his disposal, in addition to the Prinzessin Victoria Luise. We also supplied, for the first time, a hotel ship, the Graf Waldersee, all the cabins of which were engaged. On June 27th my wife and I, and a number of other visitors from the Prinzessin Victoria Luise, were invited to take afternoon tea with the Kaiser and Kaiserin on board the Hohenzollern, and I had a lengthy conversation with King Edward.”

Whenever the Kaiser granted Ballin an interview without the presence of witnesses he cast aside all dignity, and discussed matters with him as friend to friend. Neither did he object to his friend’s counsel and admonitions, and he was not offended if Ballin, on such occasions, subjected his actions or his opinions to severe criticism.

On such occasions the Kaiser, as Ballin repeatedly pointed out, “took it all in without interrupting, looking at me from the depth of his kind and honest eyes.” That he did not bear Ballin any malice for his frankness is shown by the fact that he took a lively and cordial interest in all the events touching the private life of Ballin and his family, his daughter’s engagement, for instance—an interest which still continued after Ballin’s death.

In spite of this close friendship between Ballin and the Kaiser, it would be quite wrong to assume that Ballin exercised anything resembling a permanent influence on His Majesty. Their meetings took place only very occasionally, and were often separated by intervals extending over several months, and it happened only in rare cases that Ballin availed himself of the privilege of writing to the Kaiser in person. It is true that the latter was always pleased to listen to Ballin’s explanations of his views, and it is possible that every now and than he did allow himself to be guided by them; but it is quite certain that he never allowed these views to exercise any actual influence on the country’s politics. The events narrated in the chapter of this book dealing with politics show that in a concrete case, at any rate, Ballin’s recommendations and the weight of his arguments were not sufficient to cope successfully with the influence of others who were the permanent advisers of the sovereign, and who had at all times access to His Majesty.

If thus the effect of Ballin’s friendship with the Kaiser has frequently been greatly overrated in regard to politics, the same holds good—and, indeed, to a still greater extent—in regard to the advantages which the Hamburg-Amerika Linie is supposed to have derived from it. One of Ballin’s associates on the Board of the company was quite right when he said: “Ballin’s friendship with the Kaiser has done more harm than good to the Hamburg-Amerika Linie.” Indirectly, of course, it raised the prestige of the company both at home and abroad. But there is no doubt that it had also an adverse effect upon it: at any rate, outside of Germany. It gave rise to all sorts of rumours, e.g. that the company obtained great advantages from the Government; that the latter subsidized it to a considerable extent; that the Kaiser was one of the principal shareholders, etc. It is also quite certain that these beliefs were largely instrumental in making the Hamburg-Amerika Linie, as Ballin put it, one of the war aims of Great Britain, and it is even alleged that, at the close of the war, the British Government approached some of the country’s leading shipping firms with the suggestion that they should buy up the Hamburg-Amerika Linie or the North German Lloyd. This was at the time when it became desirable to secure the necessary organization for the intended commercial conquest of the Continent. It is quite possible—and, I am inclined to think, quite probable—that this suggestion was put forward because such a step would be in harmony with that frame of mind from which originated such stipulations of the Versailles treaty as deal with shipping masters, and with the assumption that German shipping—which was supposed to depend for its continuance mainly on the existence of the German monarchial system—would practically come to an end with the disappearance of the latter. It would, indeed, be difficult to name any historical document which pays less regard to the vital necessities of a nation and which actually ignores them more completely than does the treaty signed at Versailles.

The allegation that Ballin should ever have attempted to make use of his friendship with the Kaiser for his own or for his company’s benefit is, moreover, diametrically opposed to the established fact that he knew the precise limits of his influence, and that he never endeavoured to overreach himself. His “policy of compromise” was the practical outcome of this trait of his character.

The opinion which my close observation of Ballin’s work during the last ten years of his life enabled me to form was, as far as its political side is concerned, confirmed to me in every detail by no less a person than Prince Bülow, who, without doubt, is the most competent judge of German affairs in the first decade of the twentieth century. When I asked the Prince whether Ballin could be accused of ever having abused the friendship between himself and the Kaiser for any ulterior ends whatever, he replied with a decided negative. Ballin, he said, had never dreamt of doing such a thing. He had always exercised the greatest tact in his relations with the Kaiser, and had never made use of them to gain any private advantage. Besides, his views had nearly always coincided with those held by the responsible leaders of the country’s political destinies. Once only a conflict of opinion had arisen between Ballin and himself on a political question, and this was at the time when the customs tariffs were under discussion. Ballin held that these were detrimental to the country’s best interests, and it is a well-known fact that, at that time, there was a widespread feeling as to the impossibility of concluding any commercial treaties so long as those tariffs were in operation.

During the most critical period of the existence of the monarchy—i.e. during the war—Ballin’s influence on the Kaiser was but slight. Only on a very few occasions was he able to meet the Kaiser, and he never had an opportunity of talking to him privately, as in former times. It was the constant aim of the Kaiser’s entourage to maintain their controlling influence over the Kaiser unimpaired. Even when they last met—in September, 1918—and when Ballin, at the instance of the Supreme Army Command, was asked to explain to the Kaiser the situation as it actually was, he was not permitted to see the Kaiser without the presence of a witness, so that his influence could not assert itself. The fact that the Kaiser was debarred from knowing the truth was the cause of his and of his country’s ruin. “The Kaiser is only allowed to know the bright side of things,” Ballin used to say, “and therefore he does not see matters as they really stand.”

This is all the more regrettable because, as Ballin thought, the Kaiser was not wanting in either the capacity or the independence of mind which would have enabled him to pursue a policy better than the one in which he actually acquiesced. More than once, Ballin said, the Kaiser’s judgment on a political issue was absolutely sound, but he did not wish to act contrary to the recommendations of his responsible advisers. When, for instance, it was decided that the gunboat Panther should be dispatched to Agadir, a decision which was arrived at during Kiel Week of 1911, the Kaiser exclaimed, with much show of feeling, that a step of such far-reaching importance could not be taken on the spur of the moment and without consulting the nation, and he only gave his consent with great reluctance. Moreover, Ballin stated, he was by no means in sympathy with Tirpitz, and the latter was not a man after his own heart, but he was content to let him have his way, because he believed that the naval policy of Tirpitz was right, so that he was not entitled to jeopardize the interests of his country by dismissing him. The Kaiser was not moved by an ambitious desire to build up a powerful navy destined to risk all in a decisive struggle against Great Britain, and the numerous passages in his public speeches which foreign observers interpreted as implying such a desire, must be regarded as the explosive outbursts of a strong character which was sometimes directed into wrong channels by a certain sense of its own superiority, and which, in seeking to express itself, would occasionally outrun discretion. His inconsistency which made him an easy prey to the influence of his entourage, caused him to be looked upon by foreign critics as vacillating and unstable, and this impression—as was discovered when too late—discredited his country immensely in the eyes of Great Britain, who, after all, had to be reckoned with as the decisive factor in all questions relative to world policy. Such a character could be guided in the right direction only if the right influence could be brought permanently to bear on it. But who was to exercise such influence on the Kaiser? Certainly his entourage did not include anyone qualified to do so, because it was not representative of all sections of the nation; neither was any of the successive Chancellors able to undertake such a task, since none of them succeeded in solving the questions of internal policy in a manner approved by a reliable and solid majority in the Reichstag. The Kaiserin also was not free from prejudice as to the war and the causes of its outbreak. Ballin relates how, on one of the few occasions when he was privileged to see the Kaiser during the war, Her Majesty, with clenched fists, exclaimed: “Peace with England? Never!” The Imperial family considered themselves betrayed by England and the English court. Why this should be so is perhaps still more difficult to say now than Ballin could understand in those days. Arguments, however, were useless in such a case, and could produce nothing but harm. The Kaiser did not bear Ballin any malice because of the frankness with which he explained his views that day; on the contrary, members of the Kaiser’s entourage have confirmed that, after Ballin had left that evening, he even tried to make the Kaiserin see his (Ballin’s) point of view. Putting himself into Ballin’s position, he said, he could perfectly understand how he felt about it all; but he himself could not help thinking that his English relatives had played him false, so that he was forced to continue the struggle with England tooth and nail.

When Ballin, during the summer of 1918, gave me a character sketch of the Kaiser, of which the account I have endeavoured to present in the preceding paragraphs is an outline, he added: “But what is the good of it? He is, after all, the managing director, and if things turn out wrong he is held responsible exactly as if he were the director of a joint-stock company.”

This comparison of the German Empire and its ruler with a joint-stock company and its board of directors used to form a frequent subject of argument in our inner circle, and even before the war these discussions regularly led to the conclusion that, what with the policy carried on by the Government and that carried on by the parties in the Reichstag, the Hamburg-Amerika Linie would have gone bankrupt long ago if its affairs had been conducted on such lines as those of the German Empire. It was a never-ending cause of surprise to us to learn how completely the European situation was misjudged in the highest quarters, when, for instance, the following incident, which was reported to Ballin during the war, became known to us. One day, when the conversation at lunch in the Imperial headquarters turned to the subject of England, the Kaiser remarked: “I only wish someone had told me beforehand that England would take up arms against us,” to which one of those present replied in a quiet whisper: “Metternich.” It would have been just as proper, Ballin added, to have mentioned my own name, because I also warned the Kaiser over and over again. On another page in this book reference is made to the well-known fact that the reason why Count Metternich, the German ambassador at the Court of St. James, had to relinquish his post was that he, in one of his reports, predicted that Germany would be involved in war with Great Britain no later than 1915 unless she reduced the pace of her naval armaments. This was one of those numerous predictions to which, like so many others, especially during the war, no one wanted to listen. Even in the late summer of 1918, when Ballin saw the Kaiser for the last time, such warnings met with a deaf ear. This meeting, to which Ballin consented with reluctance, was the outcome of a friendship which, politically speaking, was devoid of practical results. A detailed account follows.

CHAPTER X

The War

About the middle of the month of July, 1914, Ballin, when staying at Kissingen for the benefit of his health, received a letter from the Foreign Secretary, Herr v. Jagow, which made him put an immediate end to his holiday and proceed to Berlin. The letter was dated July 15th, and its principal contents were as follows:

The Berliner Tageblatt, it said, had published some information concerning certain Anglo-Russian agreements on naval questions. The Foreign Office did not attach much value to it, because it was at variance with the general assumption that Germany’s relations with Great Britain had undergone a change for the better, and also with the apparent reluctance of British statesmen to tie their country to any such agreements. The matter, however, had been followed up all the same, and through very confidential channels it had been ascertained that the rumours in question were by no means devoid of an actual background of fact. Grey, too, had not denied them point blank at his interview with Lichnowsky. It was quite true that Anglo-Russian negotiations were proceeding on the subject of a naval agreement, and that the Russian Government was anxious to secure as much mutual co-operation between the two countries as possible. A definite understanding had not, so far, been reached, notwithstanding the pressure exercised by Russia. Grey’s attitude had become somewhat uncertain; but it was thought that he would ultimately give his consent, and that he would quieten his own conscience by arguing that the negotiations had not really been conducted between the Cabinets, but between the respective naval authorities. It was also quite likely that the British, who were adepts at the art of making nice distinctions, would be negotiating with the mental reservation that they would refrain from taking an active part when the critical moment arrived, if it suited them not to do so; and a casus fœderis would presumably not be provided for in the agreement. At any rate, the effect of the latter would be enormously to strengthen the aggressive tendencies of Russia. If the agreement became perfect, it would be useless for Germany to think any longer of coming to a rapprochement with Great Britain, and therefore it would be a matter of great importance to make a last effort towards counteracting the Russian designs. His (v. Jagow’s) idea was that Ballin, who had intimate relations with numerous Englishmen in leading positions, should send a note of warning across the North Sea. This suggestion was followed up by several hints as to the most suitable form of wording such a note, and the letter concluded with the statement that the matter was one of great urgency. A postscript dated July 16th added that a further article had been published by the Berliner Tageblatt, according to which the informants of the author also took a serious view of the situation.

Ballin, in response to the request contained in the letter, did not content himself with sending a written note to his London friends, but he immediately went to Berlin for the purpose of gaining additional information on the spot, with special reference to the general political outlook. He learned that Austria intended to present a strongly worded note to Serbia, and that it was expected that in reply a counter-note dictated by Russia would be received. He was also told that the Government not only wanted some information regarding the matter which formed the special subject of Herr v. Jagow’s letter, but also regarding the general political situation in London, as it was doubted whether the reports received from the ambassador were sufficiently trustworthy and complete. This was all that Ballin was told. Since then many facts have become known which throw a light on the way in which political questions were dealt with by the Berlin authorities during the critical period preceding the war, and if we, knowing what we know now, read the letter of Herr v. Jagow, we ask ourselves in amazement what was the object of the proposed action in London? Could it be that it was intended to intimidate the British Government? This could hardly be thought possible, so that some other result must have been aimed at. We can only say that the whole affair is still surrounded by much mystery, and we can sympathize with Ballin’s bitter complaints in later days that he thought people had not treated him with as much openness as they should have done, and that they had abused his intimate relations with leading British personages.

Ballin then left Berlin for Hamburg. He gave me his impressions of the state of political affairs—which he did not regard as critical—and went to London, ostensibly on business. In London he met Grey, Haldane, and Churchill, and there also he did not look upon the situation as critical—at least, not at first. When, however, the text of the Austrian note became known on Thursday, July 23rd, and when its full significance had gradually been realized, the political atmosphere became clouded: people asked what was Austria’s real object, and began to fear lest the peace might be disturbed. Nevertheless, Ballin returned from London on July 27th with the impression that a fairly capable German diplomat might even then succeed in bringing about an understanding with Great Britain and France which, by preventing Russia from striking, would result in preserving the peace. Great Britain and the leading British politicians, he said, were absolutely in favour of peace, and the French Government was so much against war that its representatives in London seemed to him to be rather nervous on the subject. They would, he thought, do anything in their power to prevent war. If, however, France was attacked without any provocation on her part, Great Britain would be compelled to come to her assistance. Britain would never allow that we, as was provided for in the old plan of campaign, should march through Belgium. It was quite true that the Austrian note had caused grave anxiety in London, but how earnestly the Cabinet was trying to preserve peace might be gauged by the fact that Churchill, when he took leave of Ballin, implored him, almost with tears in his eyes, not to go to war. These impressions of Ballin are confirmed by the reports of Prince Lichnowsky and other members of the German Embassy in their observations during the critical days.

Apart from these politicians and diplomatists on active service there were other persons of political training, though no longer in office, who did not think at that time that there was an immediate danger of war. In this connexion I should like to add a report of a very remarkable conversation with Count Witte, which took place at Bad Salzschlirf on July 24th. The Count—whose untimely death was greatly regretted—was without any doubt one of the most capable statesmen of his time—perhaps the only one with a touch of genius Europe possessed—and he certainly knew more about the complicated state of things in Russia than any living person. For these reasons his views on the events which form the first stage of the fateful conflict are of special interest. I shall reproduce the report of this conversation exactly as we received it at the time, and as we passed it on to Berlin. The authenticity of the statements of Count Witte as given here is beyond question.