empire. It was accordingly proposed, with the concurrence of the Hungarian Government, that on the renewal of the agreement it shall be stipulated that the share hitherto paid by Hungary should be increased, but the Opposition in the Hungarian Parliament violently resisted this proposal.

In foreign affairs Count Goluchowski maintained his reputation as a strong and far-seeing minister. He proceeded to Berlin in January and March to have interviews with the German Emperor and Prince Hohenlohe, and at the same time Count Nigra, the Italian Ambassador at Vienna, went to Rome to consult the Italian Government; and the result of these interviews was to strengthen the ties which bind the members of the Triple Alliance. The count's main object seems to have been to prevent a conflict between England and Germany in consequence of the raid of Dr. Jameson, and one between England and Russia as regards Armenia. His policy was, in the interests of Austria, to arrest a break-up of the Ottoman Empire by inducing the Sultan to introduce reforms. Knowing that Russia would prefer to leave the Sultan weak and dependent upon her, he urged that the means of coercion should be agreed upon by the European Powers before they made their proposals of reform, but he joined heartily in those proposals directly Russia manifested her determination to insist upon them. His position was, however, an extremely difficult one, for not only Turkey but the smaller states of the Balkan Peninsula were being gradually drawn within the orbit of Russia. In May a serious dispute took place between AustriaHungary and Servia, the mob at Belgrade having burnt the Hungarian flag and the Government having afforded very inadequate satisfaction for the insult. Baron Banffy, the Hungarian Prime Minister, on being asked a question on the subject in the Hungarian Parliament, described the conduct of Servia in this matter as "not simply unfriendly, but also uncourteous," adding that "the Servian Government had not the courage to withstand the pressure exerted upon public opinion by certain extreme parties."

The foreign policy of Austria-Hungary was fully explained in the statements made to the Austro-Hungarian delegations in June by the Minister of Foreign Affairs. He said that he did not approve of the intervention of only three of the Powers in the Eastern question. "What was the consequence of that intervention? The reforms they asked for were conceded, but remained a dead letter; and their mere announcement was sufficient to excite Mussulman fanaticism, and thereby led to the atrocities and scenes of terror which would remain a stain on the history of the nineteenth century. Instead of the harmony that was necessary amongst the Powers that had urged the Sultan to introduce reforms, a split occurred amongst them as to the means to be employed, and there arose an imminent danger of one-sided interference, which would have been the

signal for raising the entire Eastern question and kindling a general conflagration. That was the time when Austria took the initiative. The question then lost its acute character, all the Cabinets adopting the principle of frank discussion. The unanimity thus obtained was the surest guarantee for the maintenance of peace. The position of the Armenians, no doubt, continued in the highest degree pitiable, but of two evils it was necessary to choose the less.

"Russia showed that the maintenance of the status quo and the strictest adherence to treaties was the declared aim of her policy. A suggestion was made at the time of the revolutionary movement in Constantinople, that the Powers should, provisionally, with the strictly-defined object of assisting the Sultan in a case of emergency, and under the observance of mutual control, suspend certain provisions of the Paris Treaty (meaning the articles as to the passage of warships through the straits). What did Russia say to this suggestion? She declared herself in favour of any Conservative measure for Turkey's benefit, but still she regarded the procedure suggested with the strongest misgivings as a dangerous course to pursue, nor could she assent to any course which would, either closely or distantly, run counter to the dispositions of the Paris Treaty.

"As to Turkey, she must find means of preventing further massacres and horrors. She must put a stop to enforced conversions and the persecution of the Christians. She must protect those who want to return to the faith of their forefathers against Mahomedan fanaticism. In a word, she must so alter the conditions of her Asiatic as well as European provinces as to justify the confidence of Europe in her vitality, or else she will approach nearer and nearer to her downfall, which finally her best friends-and we are certainly amongst them-will not be able to avert from her."

With regard to Austria's relations to the Great Powers, Count Goluchowski said: "Our relations to Germany, our oldest ally, are those of the greatest intimacy, mutual confidence and the closest understanding-relations which have become the second nature of both countries, and to which the continuance is secured to a distant future. We are more attached to Germany than ever before; we both feel the need of constant mutual understanding on all international questions, and we try, in the most complete harmony with each other, to solve the problems that form the task of the Triple League. This alliance suits us best just as it now exists, and we have no desire to change its form.

"We have absolutely no reason to view Russian policy with mistrust. We took notice of the statement of the Russian Cabinet that it would consent to nothing contrary to the Paris Treaty, and saw in it a new security for peaceful evolution. As long as Russia keeps to that course, she can count upon our

unconditional loyal support; for what has been our aim for years and years? Only the consolidation of the state of affairs created in the East by international treaties; the preservation of Turkey; the independence, trengthening, and free development of the several Balkan States and of friendly relations with them; and, finally, the exclusion of the predominant influence of any single Great Power to the detriment of the rest. We can only hail with satisfaction the fact that Russia now adheres to this, our old Eastern policy; and we regard it as proof of the sincere intention of Russia to co-operate in the promotion of peaceful interests, that, in the first place, she has abandoned her irreconcilable standpoint towards the Prince of Bulgaria by recognising his election, which this country, from the first moment, considered to be legal; further, that she endeavours to avoid everything which could arouse suspicion of her interference in the internal affairs of Bulgaria; and, finally, that she uses every occasion to emphasise her respect for existing treaties. As to ourselves, we shall continue the Balkan policy proclaimed so long ago. Our neighbours know that we would raise a determined protest against any act of violence from whatever quarter it came; and that we demand nothing for ourselves which would injure these Balkan States in their national existence. We are perfectly satisfied with what we have. We aspire to no expansion, and just as Providence has saved us from the temptations of a colonial policy, so our interests would be against the far more dangerous and injurious expansive policy in the East. We expect, however, from our nearest neighbours that amount of respect and friendly treatment which we, the elder amongst the nations, could claim from the younger offspring."

The minister praised Roumania, which, he said, had attained such political maturity as to have become an important factor in the grouping of the Powers of Europe, but censured Servia, which, he said, in the sixties was still a small model country, but is now torn by internecine party strife, while in her foreign relations she follows such doubtful ways that her friends can only watch her course with regret. In Belgrade people are disposed to make others. responsible for their own mistakes-conduct which was not without danger, and which required a very large amount of goodwill on the part of a neighbour to be able to overlook it. Turning to Bulgaria, Count Goluchowski said: "I hope Bulgaria, which has hitherto been an element of order in the Balkan Peninsula, will know how to keep its independence in every respect, to maintain order and tranquillity, and to avoid any action which would be in opposition to the firm resolution of all the Powers not to permit any conflagration whatever in the Balkans. It is immaterial whether that is done while Bulgaria refreshes itself in the alleged balmy rays of the Eastern sun, or whether it gives preference to the tried

effect of the Western sun. We shall, at any rate, not influence its taste in this respect."

Referring then to Crete, the minister urged that it would be necessary to give practical effect to the Halepa Convention, and thus to create a basis for an orderly condition of affairs. He praised the hitherto very correct attitude of Greece in the matter, and said it was clear that the serious inconvenience to her of the present state of affairs in Crete arose from the Turkish administration in the island.

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"With France," he continued, we are on the most friendly footing, simply because none of our interests ever clash with hers, and because France shows herself so sincerely and loyally attached to peace that we can always count upon her for a peaceful solution of European questions.'

The remarks Count Goluchowski made on England were awaited with no little curiosity, but were so meagre as to give rise to a number of questions. A Czech deputy asked whether the Foreign Minister had tried to intervene between England and Germany on the occasion of the differences about South Africa; also whether the minister would take up a certain position, if differences should arise between England and Russia, adding that "Austria has no reason whatever for doing anything for England, since the latter is not to be relied on in matters of foreign policy." The minister replied that traditional sympathies connect Austria-Hungary with England, and that there was on both sides an endeavour to give expression to those sympathies in their present relations. As an instance, he mentioned the recent question which arose out of the Dongola Expedition, and said England there appeared as the deputy of the Egyptian Government. That expedition was necessary, and she applied to the Great Powers for their consent to take the necessary sum from the Reserve Fund of the Caisse. He continued: "We had only to examine the financial side of the matter, and ask whether the proposed project would endanger the interests of the creditors or not. Having come to the conclusion, after a strict and conscientious examination of the case, that the British demand could be acceded to under any circumstances, we, in agreement with the German and Italian Cabinets, gave an affirmative reply. On the French and Russian side there existed political scruples with which we had not to occupy ourselves in this case, and also objections of principle as to a unanimous or a majority vote. We do not share the views of those two Cabinets in this respect, and adhere to our original resolution, which we still consider justified by the regulations to which the Dette Commission is bound."

The visit of the Czar to Vienna in August was followed by the imposing ceremonial, in September, of the opening of the Iron Gates of the Danube, on which occasion the Emperor of Austria proceeded to Bucharest to visit the King of Roumania, and most friendly assurances were exchanged between the two sovereigns.

CHAPTER III.

RUSSIA.

THE principal event of the first half of the year in Russia was the Czar's coronation at Moscow, on May 26. The festivities lasted from May 18 to June 7; the ceremony was attended by twenty-eight foreign princes, including the Duke and Duchess of Connaught and Prince Henry of Prussia, by 349 representatives of the higher nobility, 314 mayors with their assistants, and 800 delegates from the peasantry. In a manifesto addressed by the Czar to his people on the occasion of his coronation he announced that all arrears of taxation in European Russia and Poland were remitted, that the land tax was reduced by onehalf for a period of ten years, that all fines, up to 300 roubles, and punishments of arrest or imprisonment for offences other than robbery, embezzlement, etc., were remitted, that persons banished to Siberia might return to European Russia after having been in exile for from ten to twelve years, but not reside in any large town, and that sentences of penal servitude were reduced by one-third or, in the case of life sentences, commuted to twenty years. In regard to political offenders, further remissions of punishment were announced in addition to those granted to ordinary offenders. The coronation festivities were marred by a terrible disaster which occurred on May 31 on the Khodynskoye plain, where a number of booths had been erected, in which presents of food and drink were to be given in the Czar's name to the people. An immense crowd, amounting to about 400,000 persons, collected during the night in front of the booths, and the crush was so great that nearly 3,000 people were suffocated or trampled to death. The disaster was generally attributed to the defective arrangements of the police, who did not come until it was too late to prevent it, and General Vlassovsky, the prefect of police, was dismissed.

An important strike of the workpeople employed in the factories in and about St. Petersburg, comprising about 30,000 persons, took place during the spring. The strikers demanded easier hours and better wages; but no serious disturbances occurred, and the Government did not take any of the severe and arbitrary measures which under former reigns were usual on such occasions. Placards were posted, stating that the grievances of the workpeople would be fully considered if the hands would return to the factories, and this was entirely effectual in appeasing the agitation. After a series of meetings, in which there was no interference on the part of the police, work was resumed in all the workshops; but the negotiations between the Government and the employers not having produced any result, the strike was resumed after the coronation, and it continued to the end of the year.