I thought myself that the Germans had a certain grievance about the original Anglo-French agreement. We had received many conveniences in Egypt. France had gained great advantages in Morocco. If Germany felt her relative position prejudiced by these arrangements, there was no reason why patiently and amicably she should not advance and press her own point of view. And it seemed to me that Britain, the most withdrawn, the least committed of the Great Powers, might exercise a mitigating and a modifying influence and procure an accommodation; and that of course was what we tried to do. But if Germany’s intention were malignant, no such process would be of the slightest use. In that event a very decided word would have to be spoken, and spoken before it was too late. Nor would our withdrawing altogether from the scene have helped matters. Had we done so all our restraining influence would have vanished, and an intenser aggravation of the antagonistic forces must have occurred. Therefore I read all the papers and telegrams which began to pass with a suspicion, and I could see beneath the calm of Sir Edward Grey a growing and at some moments a grave anxiety. The sultry obscurity of the European situation was complicated by the uncertain play of forces within our own council chamber. There again in miniature were reproduced the balances and reserves of the external diplomatic situation. The Ministers who were conducting the foreign policy of Britain, with the ponderous trident of sea power towering up behind them, were drawn entirely from the Liberal Imperialist section of the Government. They were narrowly watched and kept in equipoise by the Radical element, which included the venerable figures of Lord Morley and Lord Loreburn, on whose side the Chancellor of the Exchequer and I had usually leaned. It was clear that this equipoise might easily make it impossible for Great Britain to speak with a decided voice either on one side or the other if certain dangerous conditions supervened. We should not, therefore, either keep clear ourselves by withdrawing from the danger nor be able by resolute action to ward it off in time. In these circumstances the attitude of the Chancellor of the Exchequer became of peculiar importance.