Even the Germans now admit the Austrian débdcle which is complete. Thus four Austrian armies have been beaten since the start of the war, and reports of disaffection in Hungary cause little surprise. The Allies are also taking the initiative in the Adriatic, where the Austrian fleet, though sheltering in fortress ses, has been attacked.
There is not the slightest friction between the United States Government and the Allies. President Wilson's Note is being amicably discussed here and in America, an no doubt attempts will be made to adjust the situation to meet the commercial claims of the States, Slow but steady progress is being made by the Allies in France, much difficulty being caused by the weather. It has been the wettest December on record and the entire country la reduced to a marsh, German losses are actually greatest in Poland where the fighting has been most sanguinary, the Germans fruitlessly striving to reach Warsaw.
The Russians have captured 0 much Austrian ammunition that. they will save most of their own.
It is officially announced that the rate of unemployment is trice of bread, owing to scarcity of transport ships, but this is con. sidered to he only temporary.
An Army Order issued to-night announces the creation of six new armies each generally consisting of three army corps.
General Sir D. Haig will command the Ist Army; General Sir H. L. Smith-Dorrien the 2nd Army; General Sir Archibald Hunter the 3rd Army; General Sir Ian Hamilton the 4th Army; General Sir H. M. Rundle the Sth Army and General Sir Bruce Hamilton the 6th Army.
Major-General Monro commands the Ist Corps; Lieut. General Ferguson the gnd Corps and Lieut.- General Sir H. C. Plummer the sth
Text read from the printed page and cleaned; old type leaves the occasional error.