I have shown how forward the Chancellor of the Exchequer was during the crisis of Agadir in every matter that could add to the strength of the British attitude. But as soon as the danger was passed he adopted a different demeanour. He felt that an effort should be made to heal any smart from which Germany might be suffering, and to arrive at a common understanding on naval strength. We knew that a formidable new Navy Law was in preparation and would shortly be declared. If Germany had definitely made up her mind to antagonise Great Britain, we must take up the challenge; but it might be possible by friendly, sincere and intimate conversation to avert this perilous development. We were no enemies to German Colonial expansion, and we would even have taken active steps to further her wishes in this respect. Surely something could be done to break the chain of blind causation. If aiding Germany in the Colonial sphere was a means of procuring a stable situation, it was a price we were well prepared to pay. I was in full accord with this view. Apart from wider reasons, I felt I should be all the stronger in asking the Cabinet and the House of Commons for the necessary monies, if I could go hand in hand with the Chancellor of the Exchequer and testify that we had tried our best to secure a mitigation of the naval rivalry and failed. We therefore jointly consulted Sir Edward Grey, and then with the Prime Minister’s concurrence we invited Sir Ernest Cassel to go to Berlin and get into direct touch with the Emperor. Sir Ernest was qualified for this task, as he knew the Emperor well and was at the same time devoted to British interests. We armed him with a brief but pregnant memorandum, which cannot be more tersely summarized than in von Bethmann-Hollweg’s own words[10]: ‘Acceptance of English superiority at sea—no augmentation of the German naval programme—a reduction as far as possible of that programme—and on the part of England, no impediment to our Colonial expansion—discussion and promotion of our Colonial ambitions—proposals for mutual declarations that the two Powers would not take part in aggressive plans or combinations against one another.’ Cassel accepted the charge and started at once. He remained only two days in Berlin and came at once to me on his return. He brought with him a cordial letter from the Emperor and a fairly full statement by von Bethmann-Hollweg of the new German Navy Law. We devoured this invaluable document all night long in the Admiralty, and in the morning I wrote as follows to Sir Edward Grey:— _January 31, 1912._