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.