ABSTRACT
The first half of 1902 saw the growth of optimism regarding Britain’s international standing. The Boer War had drawn to a successful conclusion. There had been no continental coalition against Britain. The Hay–Pauncefote Treaty of 1901, under which Britain accepted that the United States would have the sole right to build a canal across Central America connecting the Atlantic and the Pacific, had softened relations with the United States and allowed for reduction of forces in that part of the world. Following the alliance with Japan, there was relief in the Far East as well. On the other hand, some developments were causing concern. The experience of success in South Africa had been more unnerving than exhilarating. It led to the demand for a fresh appraisal of strategic and defence policies. On the economic front, following a general recession in trade, the debate upon Britain’s capacity to preserve its economic lead was acquiring more pessimistic contours. The failure of efforts to arrive at some settlement with Germany was seen as a pointer to inexorably diminishing diplomatic bargaining power.
