‘... a keen dispute had arisen among Ministers—especially between Churchill and Grey—as to who should go to Berlin, in the event of the achievement of the object of making Germany abandon the further development of her fleet, and affix his name to this great historical document. Churchill considered himself the right man for the job, seeing that he was the head of the Navy, but Grey and Asquith would not allow their colleague to reap the glory. Thus for a time, Grey stood in the foreground—another proof that some political purpose rather than the number of ships was the leading factor. After a while, however, it was decided that it was more fitting to Grey’s personal and official importance that he should appear only at the termination of the negotiations, to affix his name to the agreement, and ... “to get his dinner from the Emperor and to come in for his part of the festivities and fireworks,” which, in good German, means to enjoy the “Bengal light illumination.” As it had been decided that in any event Churchill was not to get this, it was necessary to choose somebody for the negotiations who was in close accord with Asquith and Grey and who, possessing their complete confidence, was willing to conduct the negotiations as far as the beginning of the “fireworks”; one, moreover, who was already known at Berlin and not a stranger to Germany. Churchill certainly qualified to this extent, for he had attended the Imperial manœuvres in Silesia and Wurtemberg on several occasions as a guest of the Emperor.’ On this it may be observed that there never was any question of my going to Berlin to negotiate about the Navy; nor did I at this time wish to go. All the British ministers concerned worked together in the utmost accord. After full discussions we authorized Sir Ernest Cassel to send the following telegram:— _Sir E. Cassel to Herr Ballin (drafted by Sir E. Cassel, the First Lord, Mr. Haldane, Sir Edward Grey)._ _February 3, 1912._ Spirit in which statements of German Government have been made is most cordially appreciated here. New German programme would entail serious and immediate increase of British naval expenditure which was based on assumption that existing German naval programme would be adhered to. If the British Government are compelled to make such increase, it would make negotiations difficult if not impossible. If, on the other hand, German naval expenditure can be adapted by an alteration of the tempo or otherwise so as to render any serious increase unnecessary to meet German programme, British Government will be prepared at once to pursue negotiations on the understanding that the point of naval expenditure is open to discussion and that there is a fair prospect of settling it favourably.