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 peaceable settlement of the Serbian question. It was my intention to prepare the way for this policy by getting into touch with French statesmen. Through the good offices of a Hungarian who was living in France (called Mannheim) I was to meet the one-time Minister Steg. The war, however, frustrated our meting.

With regard to Serbia, we would have had to bring about a complete change of policy at any price. We would then have supported such change of policy by concluding a good economic alliance and assuring her by this means an easy access to the sea, but of course without any corridor, and only by means of economic facilities.

The Entente would not have had to surrender Serbia, but only the Pan-Serbian idea, which was of value to them only as long as they intended to make war upon us, or as long as they believed that we wished to attack them. The whole idea would have lost all value to the Entente if my plan of arbitration had succeeded.

The realization of this plan would have made a solution of the Serbian question possible without the European War, and even without anv war at all; but in default of this plan, there was little hope of success. The mutual distrust and hatred of the two big alliances did not give rise to the hope that the Entente would stand by to watch us take the sword from Serbia's hand in case they might themselves have need of it soon.

Our Government also fell the necessity for removing