The Kaiser thinks the Serbian reply is moral victory for Austria. Every cause for war drops away. Austria should take Belgrade as a guarantee until the Serbs carry out their promises. This becomes known as “halt in Belgrade”. He forwards his proposal to the German leaders in Berlin.
The Kaiser gets letter from Prince Henry reporting his meeting with George V who he reports to have said Britain will try to keep out of any European conflict.
German Chancellor does not act on the Kaiser’s proposal until the end of the day and then forwards it to Vienna making the qualification Germany does not want to hold Austria back.