His Majesty's Government cannot for a moment entertain the Chancellor's proposal that they should bind themselves to neutrality on such terms. What he asks us in effect is to engage to stand by while French colonies are taken and France is beaten, so long as Germany does not take French territory as distinct from the colonies. From a material point of view such a proposal is unacceptable, for France without further territory in Europe being taken from her could be so crushed as to lose her position as a great power and become subordinate to German policy. Altogether apart from that, it would be a disgrace for us to make this bargain with Germany at the expense of France, a disgrace from which the good name of this country could never recover.--(British "White Paper" No. 101.) With this telegram the war on Germany was practically declared, for as a price of British neutrality an open humiliation of Germany was demanded. If France--the question of French colonies is of very minor importance in this connection--must not be defeated by Germany, then England forbade the German Government to make war. It was furthermore stated that Germany was absolutely compelled to accept Russian-French dictates, and would have to leave Austria to its own resources. This would have meant Germany's retirement from the position of a great power, even if she had backed down before such a challenge. * * * * * III. THE AGREEMENT WITH FRANCE. Only in the light of the developments concerning England's relation to France, given at the beginning of the war, Grey's policy, swaying between indecision and precipitate action, becomes apparent. In all the explanations which the British Government in the course of eight years had presented to the British Parliament concerning the relations to other large powers, the assurance had been repeated that no binding agreements with the two partners of the Franco-Russian alliance had been made, above all, that no agreement with France existed. Only in his speech in the House of Commons on Aug, 3, 1914, which meant the war with Germany, Grey gave to the representatives of the people news of certain agreements which made it a duty for Great Britain to work together with France in any European crisis. The fateful document, which in the form of an apparently private letter to the French Ambassador, dealt with one of the most important compacts of modern history, was written toward the end of the year 1912, and is published in the British "White Paper" No. 105, Annex 1: London Foreign Office, Nov. 22, 1912. My Dear Ambassador: