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Rh The action of our Government was this: They discouraged the candidature, and remonstrated against it, advising that it should be withdrawn. When that was done, they thought the German position a good one. Lord Granville wrote, 10th July: "Under the menaces of the French it is difficult for North Germany to make a concession, or to discourage the Prince in his candidature." Nevertheless the Cabinet came to a decision which they communicated to the Queen which was taken very ill by the Germans. It proposed that they should do for a consideration what they had already done unconditionally. For the Germans had withdrawn their candidature, and the King had expressed to Benedetti his approval of the measure. But the French refused to withdraw their new demands. And when Gramont persisted, regardless of our advice, Lord Lyons assured him that it made no difference in our sentiments. His other despatches, during the crisis, were received with approbation, and an approving despatch always followed from the Foreign Office. No such reply was given to this outrageous blunder. For by that time the French Government was bent on war. At first the moderation shown by the King of Prussia in receding from his position, and accepting in patience so grave a repulse, made a bad impression at Paris, and was attributed to fear. The Imperialists were elate. If Prussia was willing to accept one humiliation, why not another? If one leek went down, why not two? They had gained, with the moral support of Europe, a great diplomatic victory. They began to think it possible to extract something more from the situation. The Emperor said to Ingra: "Public opinion in France would have preferred another solution—that is, war. But I recognise that this is a sufficient, a satisfactory solution, and removes every pretext for war—for the present." Rothschild received this telegram: "The Prince has given up his candidature. The French are satisfied." The Prime Minister announced peace, with effusion, and was positively triumphant. This was not the purpose of the majority. They wished to