At the same time the German army penetrated French territory at two points, namely, Longwy and Cirey-les-Forges. It was stated on August 2nd that the number of Germans who had crossed the Grand Duchy was about 100,000, and that they were concentrating in Belgian territory in the neighbourhood of Liège. Strong guards were posted round the railway lines. On Sunday, too, a despatch from Luxemburg announced that the Luxemburg Minister of State had received, through the German Minister there, a telegram from the Imperial Chancellor stating that the military measures taken by the Germans in Luxemburg did not constitute a hostile act against the Grand Duchy. They were simply measures taken to protect the working of the railways connected with the German system against a possible attack by French troops. Luxemburg would be completely indemnified for any damage that might be done to the lines. [Illustration] Although Germany formally declared war on Russia on July 31st, no great military efforts were made in the east. On the other hand, the movements already made against France were followed up with energy, in spite of the fact that diplomatic relations had not actually been severed. What the next German step was may be seen from the following brief statement, which was made by Sir Edward Grey in the House of Commons on the evening of August 3rd: Germany sent yesterday evening at seven o'clock a Note proposing to Belgium friendly neutrality covering a free passage through Belgian territory, and promising the maintenance of the independence of the kingdom and possessions at the conclusion of peace, and threatening in the case of refusal to treat Belgium as an enemy. A time limit of twelve hours was fixed for reply. Belgium answered that an attack on their neutrality would be a flagrant violation of the rights of nations and that to accept the German proposal would sacrifice the honour of a nation conscious of its duty. Belgium is firmly resolved to repel aggression by all possible means.