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 By means of an able propaganda we ought to have exploited, and we could have exploited in a far greater degree, firstly our desire for peace, and secondly the refusal of our enemies to make one. I approved of the official peace proposals which we had made at the end of the year 1916; in fact, I recommended that such a step should be taken in October, 1915, to Bethmann-Hollweg personally. In other words, I was prepared to pursue such a course once Serbia's power had been broken down, only I was of the opinion that the greatest importance would have to be laid on the fact that such a step should not be regarded as weakness on our part. It was a question of political tact and ability to reconcile the two contradictory considerations of displaying simultaneously the readiness to make peace and the ability to wage war. A peace move could only be made when the military position was favourable. At the same time an effort should have been made to get in secret touch with the enemy. My chief trust lay in England, and I was of the opinion that the main duty of Austria-Hungary was to get into touch with London. But it was impossible to give a complete trial to these possibilities, because our relation with Germany was never sufficiently good for Germany to regard such an action without jealousy.

In Hungary the Social Democrats and Karolyi's party expected to bring about peace by the propagation of the annexation principle and of the principle of no mutual compensation, which resulted in increased activity on the part of the International. I always