Mar, 28.
To the mind the Danube so often conveys a picture of eas) contentment—"love, light ani laughter"—that it may come as something of a shock to learn that ithe realities of the great Central European area through which the broad river flows are giving the Great Powers uneasiness. This!
however the meaning of the brief statement that those powers, including Great Brit France, Germany and Italy, are shortly to have a conference at Geneva in order to arrive at a preliminary agreement, regarding an economic pact for the uhlan states. During the past year conditions in Austria, and Hungary have been rapidly, deteriorating. Those unfortunate countries are being. brought face to face with a crisis which, in spite: of. strenuous efforts by their respective statesmen, may over~ whelm them, Nor can the rest of Burope be indifferent to such catastrophe. At this distances it may appear to be of less importance than the present upheaval in the Far East. When it is remembered how grievously the collapse of the Credit Anstalt affected Germany, Great Britain and the rest, it will be appreciated that the repereusions of a further calamity may be unpleasantly far-reaching. This evidently is the view of M.
dien, the new French Pre miex, to whom on February 16, fas to the heads of other European Governments, Dr. Bureschr the Austrian Chancellor addressed his dignified but poignant appeal. M. Tardieu has promptly replied to the British Proposal for an early cone ference.
Dr, Buresch, as Austria's Chancellor and Minister for Foreign Affairs, formally informed the Powers on February 16 that his country's position was getting desperate, Its efforts to enter into negotiations with neighbour fand other states for economic [pacts had been baulked by political considerations. "Some such achievement would however have to be attempted with definite results. Meantime it was intimated that Austria would have to place tions on imports, well aware further restric~ though she was that such a step was discouraging to trade expansion, Foreign credits were essential but without considera tion by the Powers it seemed that the task of securing such aids was impossible, It is understood that early in the present month, M, Tardieu replied recommending that the Danubian States, comprising Austria,—Hungary, Czecho~ Slovakia, Roumania, Jugo-Slavia, and Bulgaria should conclude Customs unions and treaties based on preferential duties, Apparently Germany was not included in the French Premier's suggestion but as Germany, ruefully recalling 00 doubt the failure of her attempt to form an Austro-German Customs Pact, intimated almost at the same time a readiness and eagerness to help Austria, it caw hardly be doubted that a Danubian Customs Pact must include the senior partner in the firm, At the end of January the League of Nations Financial Committee issued a report which advised Austria and Hungary to reduce wages and expenditure more drastically, deflate mora energetically and' export more vigorously, This counsel of per fection which might well be given to any other country applied with singularly little force to the two distressed countries in question. They have taken the prescription long ago to the utmost. Their maladies require treatment more appropriate to the' realities of their situation. they see it, they have been ov looked by the other European countries, lately involved in the Great War, They have been told to wait patiently for a general recovery and to put their houses in order. The League of Nations thought it had put Austria on a sound financial basis when it lent that country the genius of Sir Basil Blackett. "But Sir Basil's wiz dry could not protect Austria against the evils of European tariff-walls and political distrust, with their attendant econo-mie disabilities.
Tt is a wid the Peace Treaties produced the fundamental difficulties of Aus~ trio and Hungary, added to the tariff-walls of the Little Entente. Thus France is brought sharp up against a problem which is of vital importance to her as the chief beneficiary under those treaties. That is the Austrian view at all events. It may have its weak points but it cannot be disregarded in the light of the plain facts of the economic situation, Austria, in particular, may be reluctant to surrender too much to French financial control but there seem to be grave disadvantages in turning to the League for that, in effect, would mean an abandonment of sover-eighty to Geneva, The mere (Continued on page 497.)
Text read from the printed page and cleaned; old type leaves the occasional error.