Britain, Sunday, 5th July

6 July On returning from Germany, Lichnowsky calls on Grey. There is anxiety and pessimism in Berlin about the attitude of Russia and Russia's growing military strength.
He knows the Austrians intend to do something and might take military action against Serbia. In response to Grey, he says there would be no annexation of territory.
Grey says he understands it would be difficult for the Austro-Hungarian leadership to refrain altogether from vigorous measures.
Lichnowsky also says a rumoured Anglo-Russian naval agreement directed against Germany adds to German worries. There is feeling in Germany that it might be better not to restrain the Austrians as trouble now would be better than trouble later.
Grey recognises the danger to European peace. He says he wants to bring the two groups of powers closer together and he will talk to the Russians.

8 July Grey sees Benckendorff and repeats the substance of Lichnowsky's remarks. Grey says that discoveries made during the inquiry into the assassination might give the Austro-Hungarians cause to act against Serbia.
Benckendorff believes that would arouse Russian public opinion and he hopes Germany will restrain Austria-Hungary.
He notes Grey's comment that the Germans feel threatened by Russian armaments and might therefore support Austria-Hungary. Benckendorff says he will talk to Sazonov.
In response to a question from Benckendorff as to seriousness of the situation Grey says it "made his hair stand on edge".

9 July Grey sees Lichnowsky again. Grey admits there have been naval talks between Britain and Russia but everything has been on the basis that the hands of the British government are completely free.
He goes on to report the Russian ambassador has said St. Petersburg has no hostility toward Germany.
Grey says if Austria-Hungary's action is reasonable and doesn't provoke pan-Slav feeling it would be comparatively easy to encourage patience in St. Petersburg. If, however, Vienna went too far then pan-Slav feeling would force St Petersburg to act. [More]