I had no indication whatever that Germany was prepared to make any reparation to Belgium, and, while repeating that in principle I was favourable to mediation, I could see nothing to do but to wait for the reply of the German Emperor to the question that Mr.Bryan had put to him and for the United States to ascertain on what terms Germany would make peace if the Emperor's reply was favourable to mediation.
The Ambassador made it quite clear that he regarded what the German Ambassador had said as a move in the game.

He agreed with what I had said respecting terms of peace, and that there seemed no prospect at present of Germany being prepared to accept them.
I am, &c., E.GREY.
A letter from Page to Colonel House gives Page's interpretation of this negotiation: _To Edward M.House_ London, September 10, 1914.
MY DEAR HOUSE: A rather serious situation has arisen: The Germans of course thought that they would take Paris.

They were then going to propose a conqueror's terms of peace, which they knew would not be accepted.

But they would use their so-called offer of peace purely for publicity purposes.

They would say, "See, men of the world, we want peace; we offer peace; the continuance of this awful war is not our doing." They are using Hearst for this purpose.