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shall be resumed at St. Petersburgh between M. Sazonofand Count Szapary; if they have been interrupted, itwas due to a misunderstanding, Count Berchtold believing that the Russian Minister for Foreign Affairsdemanded for his interlocutor powers which wouldenable him to modify the terms of the Austrian ulti-matum. Count Szapary will only be authorised todiscuss what arrangement would be compatible with thedignity and the prestige of which both Empires areequally anxious.

For the moment, therefore, the examination whichSir Edward Grey proposed to confide to the fourPowers not directly concerned will take place in thisdirect form and will be confined to the two mostinterested.

Sir M. de Bunsen , who happened to be with me,at once declared to M. Schébéko that the Foreign Officewould thoroughly approve this new procedure.)

On the following day the Russian Ambassador at Berlinreceived information that the Austrian Ambassador at St. Peters-burgh was confirming Count Berchtold 's statement to M. Schébéko,with the explanation that the Austrian Government were ready todiscuss with the Russian Government the note presented to Servia ,

even as regards its material contents ("..... que son Gouverne-

"ment était prêt à discuter avec le Gouvernement russe la note"à la Serbie, même quant au fond". Yellow Book No. 121).

Thus, the Austrian Government had on the 30 th ofJuly taken a decivise step in a conciliatory direction byresuming direct negotiations with Russia and declaringitself ready to enter into a material discussion of thenote to Servia , a condition which had until then beenobstinately declined. The reason for this declared spirit ofaccommodation on the part of Austria which was bound to deprivethe crisis of its acute carácter for the moment, will be easilyunderstood upon reference to the German White Book. On the,.28 th of July the German Emperor had telegraphed to the Czar: