"Things look very black here," ran the letter. "Many of us, until a day or so ago, believed that the Austro-Servian difficulty would be amicably settled. As a matter of fact, I know that Austria was prepared to let Servia down rather lightly, but since then new forces have been at work. I am in a position to state that Germany, and by Germany I mean the Kaiser and the War Party generally, whose word is, of course, law in Germany, has instructed the Emperor Franz-Josef to send Servia practically impossible demands. What is in the Kaiser's mind it is impossible to say, but, as is very well known, he has been using almost superhuman efforts in perfecting his army and navy, until Germany has become the greatest fighting machine in the world. It is well known, too, that the Kaiser believes that Russia is so impoverished and enfeebled by her war with Japan that she is no longer dangerous, and he considers France altogether unprepared for war. This being so, it is the general opinion in diplomatic circles that the Kaiser's purpose in sending Servia impossible conditions is intended to arouse hostilities. Only to-day I had a chat with a man who moves in the inner circle of things, and he told me, that if Russia defends Servia, as he hopes she will, and that if France prepares to help Russia, as she is sure to do, Austria can keep Servia and Russia busy, while Germany fulfils her long-held determination to bring France to her knees, and to make her practically her vassal. No one believes that England would interfere. My own belief is that Germany is using the present occasion as the first step towards carrying out her long-cherished ambitions. When once she has conquered France, and commands her sea-board and her navy, she will then be able to crush England, which is her ultimate aim." When the Admiral showed me this letter, I suppose I smiled incredulously, for the old man broke out into violent language. "I believe it's true," he cried. "The Kaiser, for all his pious hypocrisies, is a war devil. He hates the thought that England should be such a World Power, while Germany is only an European Power." "But the Kaiser isn't such a fool," I replied. "He knows England and her strength." "Yes, but he's drunk with pride and arrogance. He thinks Germany is destined to rule the world." A day or so later news came that Servia had consented to all Austria's demands with the exception of two points, and suggested that these should be submitted to the mediation of the Great Powers. "Ah, that clears the air!" I thought; "nothing can be more reasonable." Much to the surprise of every one, news came on July 26 that Austria regarded Servia's answer as unsatisfactory, and that the Austro-Hungarian Minister, with the Legation Staff, had left Belgrade on the previous day. On July 28 I called at Mrs. Nancarrow's house, where I saw Bob reading the newspaper with a smile on his face.