However this was probably an illusion even in 1878 – as Gladstone pointed out – even then the term ‘limited liability’ is a closer description of her position. Britain’s need to protect her empire and status and trade with India and China, meant involvement in agreements, though never military alliances. The Congress of Berlin meant that she had obligations towards the new countries which lay between Europe and her Eastern empire.
It is true that both Salisbury and Grey tried to prevent a war which would threaten Britain’s status, by creating a concert of Europe which appeared to perpetuate Britain’s Splendid Isolation. The European rivalries constituted a threat since whoever won could challenge Britain’s industrial and imperial domination. Yet even this had resulted in agreements with both sides in an attempt to maintain a balance which would prevent aggression: Salisbury supported the Austrians against the Russians in the Mediterranean Agreement and the French against the Germans over Morocco in 1905; Grey mad an alliance with Russia in 1907 but then supported the Austrians against the Russian backed Balkan League in 1912 and 1913.
After 1901 even this illusion of isolation began to disappear, though Britain continued to avoid commitment to military alliance and her motive was always to guard her empire and trading interests. The Boer War revealed just how unpopular and vulnerable Britain had become. It was also becoming increasingly apparent that Britain was having no effect in controlling the European rivalries, with trouble recurring between France and Germany over Morocco in 1911 and between Austria and Russia in the Balkans in 1908, 1912 and 1913. Thus Britain sought agreements with Japan in 1902, France in 1904 and Russia in 1907. This seems to signify that Splendid Isolation is no longer a significant feature of Britain’s foreign policy. Yet even here there is an element of aloofness – Britain still refused to commit to the Triple Entente.
It was only after war had started between the Alliance and the Entente that Britain’s military isolation was ended.
So, the image of Splendid Isolation was certainly a dominant feature 1878-1901, even though in reality it was more like limited liability. After 1901 even this image became weaker as both Salisbury and Grey both felt the need to protect trading interests with alliances in an attempt to curb growing aggression in Europe, though it was only in August of 1914 with the Germans entering Belgium that the idea of Splendid Isolation was finally destroyed.