"Gentlemen, let us adjourn today's meeting. I will carefully consider your suggestions," Prime Minister Asquith said, his face betraying weariness. It was evident that making a decision of such monumental consequence for the nation's fate could not be rushed, particularly given the increasingly adverse circumstances that threatened their prospects in the war.
"Yes, Prime Minister," the other cabinet members responded in unison as they rose to leave.
"Churchill and Edward, please stay," Prime Minister Asquith requested.
Both Minister of the Navy Churchill and Foreign Secretary Sir Edward Grey exchanged glances of surprise before nodding. They understood that Asquith had called them back for a significant discussion.
Once everyone else had departed, Asquith led Churchill and Grey out of the meeting room and directly into his office.
"What are the chances of preserving the fundamental interests of the British Empire if we seek peace with the Germans?" Asquith asked bluntly.
Churchill and Grey knew that if the Germans' terms were not excessively harsh, Asquith might indeed consider negotiating for peace. The odds of victory in this war were already slim, and the likelihood of defeat loomed large. Losing the war would spell the end for the British Empire; thus, it might be prudent to seek peace now to mitigate their losses.
In terms of the Empire's core interests, aside from the homeland, only India remained. In other words, if the British Empire were to lose other territories in the conflict, retaining only the homeland and India would still allow for a swift recovery of power, potentially reestablishing them as a formidable nation. India, with its vast population and abundant resources, was crucial; moreover, the British had tamed the Indian populace, enabling them to exploit and oppress for considerable wealth. However, other regions might not yield the same opportunities.
Yet, everyone recognized the allure of India's riches and the character of its people, which made it a target for covetous nations. While previously, the British Empire's strength deterred aggressive actions, the prospect of Germany besting Britain raised the question: would the Germans leave India intact, allowing for a resurgence? That seemed highly improbable.
"Prime Minister, it is unlikely we can retain India. The Germans will surely demand its cession. In fact, we may not be able to hold on to any of our overseas colonies. The Germans' appetite will likely be greater than we anticipate. Their calculated challenge to our supremacy is, after all, motivated by our colonies," Grey remarked.
Asquith nodded, recognizing that in the same position, he would not hesitate to seize India. Losing India would undoubtedly undermine Britain's foundation, eliminating any future threat to Germany.
"However, we have not yet been defeated; the Germans may hold the advantage, but they have not secured victory. If we negotiate, there might still be a chance to preserve India," Asquith continued.
Grey nodded in agreement but reluctantly admitted that the possibility was exceedingly small.
"Then let the Foreign Office reach out to the Germans. If they agree to a ceasefire, the British Empire could concede its colonies in Africa and the Middle East. Additionally, we might consider a war indemnity of one hundred million pounds. Such terms would not be unreasonable and would be quite advantageous for them," Asquith stated.
Though the price was steep, it was not a crippling loss for Britain. Given time to regroup, they could restore their national strength and once again confront Germany.
"Yes, Prime Minister, I will make the arrangements," Grey replied.
Asquith nodded and turned to Churchill.
"If we engage in a full-scale conflict with the Germans, what are our chances of victory?" Asquith inquired. While he was leaning towards negotiation, he had not entirely abandoned hope for victory. If they could triumph, the British Empire could preserve its current interests and extract significant reparations from Germany, thus offsetting their war losses. Nevertheless, Asquith recognized the slim odds.
"Prime Minister, defeating the Germans at this point seems exceedingly challenging. Unless divine fortune favors us in naval combat, victory will be difficult to attain. The fundamental design flaws in our warships have rendered them vastly inferior to the Germans'. This disadvantage places us at a significant risk in maritime engagements. Of course, many factors influence the outcome of naval battles; it is not solely a matter of design. If luck were to smile upon us, there remains a possibility of triumph," Churchill explained.
Asquith nodded. Although Churchill had not explicitly stated it, he knew the reality: the British Navy's chances of victory were exceedingly low, to the point where Churchill could only place his hopes on the capriciousness of fate. Expecting the British to triumph over the German Navy purely through luck was unrealistic.
"If we are defeated, the British Empire will be utterly finished," Asquith said.
"Yes, Prime Minister. A defeat would compel us to accept the Germans' most severe terms, perhaps even surrendering to their demands. If we resist, they might invade our homeland, plunging the entire country into chaos. Our nation could face total annihilation," Churchill warned.
Asquith's expression darkened further. As the leader of the British Empire, he certainly did not wish to see such a day come to pass.
"Edward, I authorize you to negotiate with the Germans. If their conditions are not excessive, conclude the war," Asquith commanded.
"Yes, Prime Minister," Grey affirmed.
"Churchill, if the diplomatic negotiations fail, we will have no choice but to resort to war," Asquith continued.
"Prime Minister, I will do everything in my power to secure victory!" Churchill vowed.