relations.

The Emperor agreed. He was convinced that free trade was the true policy
for Germany also, but Germany could not go so quickly here as England
had gone.

I referred to Friedrich List's great book as illustrating how military
and geographical considerations had affected matters for Germany in this
connection.

The Emperor then spoke of Chamberlain's policy of Tariff Reform, and
said that it had caused him anxiety.

I replied that with care we might avoid any real bad feeling over trade.
The undeveloped markets of the world were enormous, and we wanted no
more of the surface of the globe than we had got.

The Emperor's reply was that what he sought after was not territory but
trade expansion. He quoted Goethe to the effect that if a nation wanted
anything it must concentrate and act from within the sphere of its
concentration.

We then spoke of the fifty millions sterling per annum of chemical trade
which Germany had got away from us. I said that this was thoroughly
justified as the result of the practical application of high German
science.

"That," said he, "I delight to think, because it is legitimate and to
the credit of my people."