‘A few friendly lines addressed to you about the report I sent would have a happy effect. [A complaint which we were reputed to have made about an alleged clandestine visit of certain German ships to the Shetland Islands.]... If he wishes it, C. can make use of this opportunity in a few quite unofficial lines addressed to you, to brush away the shadows which were created in high quarters here by the “luxury fleet” (luxus flotte) and the absence of warmth in his last speech. This will be a great help in the political negotiations. It would be too pitiful if, owing to misunderstanding and sentiment, the great work of arrangement were to be hindered ... etc., etc.’ In compliance I therefore wrote the following letter for the Emperor’s eye:— _Mr. Churchill to Sir Ernest Cassel, April 14, 1912._ I am deeply impressed by the Emperor’s great consideration. I only mentioned the incident to Ballin as an example to show the kind of anxieties and the strain to which the naval situation gives rise. I am very glad to know that it was free from all sinister significance: and I take this opportunity of saying again that we have been throughout equally innocent of any offensive design. I suppose it is difficult for either country to realise how formidable it appears to the eyes of the other. Certainly it must be almost impossible for Germany, with her splendid armies and warlike population capable of holding their native soil against all comers, and situated inland with road and railway communications on every side, to appreciate the sentiments with which an island State like Britain views the steady and remorseless development of a rival naval power of the very highest efficiency. The more we admire the wonderful work that has been done in the swift creation of German naval strength, the stronger, the deeper and the more preoccupying those sentiments become. Patience, however, and good temper accomplish much; and as the years pass many difficulties and dangers seem to settle themselves peacefully. Meanwhile there is an anxious defile to be traversed, and what will help more perhaps than anything else to make the journey safe for us all, is the sincere desire for goodwill and confidence of which Ballin’s letter and its enclosure are a powerful testimony. * * * * *