I attended the Emperor in his state rooms at the Castle at one o'clock in the morning, and sat smoking with him and his Ministers for over two hours. His Foreign Minister and Count Metternich and the War Minister, von Einem, were present. I said that I felt myself an intruder, because it was very much like being present at a sitting of his Cabinet. He replied, "Be a member of my Cabinet for the evening." I said that I was quite agreeable.
They then engaged in a very animated conversation, some of them challenging the proposal of the Emperor to accept the British suggestions, with an outspokenness which would have astonished the outside world, with its notions of Teutonic autocracy. Count Metternich did not like what I suggested, that there should be a conference in Berlin on the subject of the Bagdad Railway between England, France, Russia, and Germany.
In the end, but not until after much keen argument, the idea was accepted, and the Emperor directed von Schoen to go next morning to London and make an official proposal to Sir Edward Grey, This was carried out, and the preliminary details were discussed between von Schoen and Sir Edward at the Foreign Office.
Some weeks afterward difficulties were raised from Berlin. Germany said that she was ready to discuss with the British Government the question of the terminal portion of the railway, but she did not desire to bring the other two Powers into that discussion, because the conference would probably fail and accentuate the differences between her and the other Powers.
The matter thus came to an end. It was, I think, a great pity, because I have reason to believe that the French view was that, if the Bagdad Railway question could have been settled, one great obstacle in the way of reconciling German with French and English interests would have disappeared. I came to the conclusion afterward that it was probably owing to the views of Prince von Bülow that the proposal had come to an untimely end. Whether he did not wish for an expanded entente; whether the feeling was strong in Germany that the Bagdad Railway had become a specially German concern and should not be shared; or what other reason he may have had, I do not know; but it was from Berlin, after the Emperor's return there at the end of November, 1907, that the negotiations were finally blocked.