came to make this gross violation of their principle.

"Coming to the third proposition, Von Hertling says, with justice, that the doctrine of the balance of power is a more or less antiquated doctrine. He further accuses England of being the upholder of that doctrine for purposes of aggrandizement. That is a profoundly unhistorical method of looking at the question. Great Britain has fought time and again for the balance of power, because only by fighting could Europe be saved from the domination of one overbearing and aggressive nation.

"If Von Hertling really wants to make the balance of power antiquated, he can do it by inducing his countrymen to abandon that policy of ambitious domination which overshadows the world at this moment.

"I return to President Wilson's third and fourth principles. Consider for a moment how Von Hertling desires to see the principle that the interest and benefit of the populations concerned should be considered in peace arrangements. He mentions three countries he wishes to see restored to Turkey-namely, Armenia, Palestine and Mesopotamia.

"Does any one think that it would be to the interest and benefit of the populations concerned? Von Hertling accuses us of being animated with purely ambitious designs when we invaded Mesopotamia and captured Jerusalem. I suppose he would say that Russia was similarly moved when she occupied Armenia. But when Turkey went to war she picked a quarrel with us for purely ambitious purposes. She was promised by Germany the possession of Egypt. Would the interest and happiness of the population of Egypt be best conserved by Turkish conquest of Egypt? "The Germans in the search for the greatest happiness of these populations would have restored Egypt to the worst rule the world has ever known. They would have destroyed Arab independence and abandoned Palestine to those who had rendered it sterile all these centuries.

"How could any one preach seriously profession of faith about the interests of populations after this evidence of the manner in which Von Hertling desires to see it carried out? If the reichstag had any sense of humor it must surely have smiled when it heard the chancellor dealing in that spirit with the dominating doctrine of every important German statesman, soldier and German thinker for two generations at least.

"So much for the four principles which Mr. Holt says Von Hertling accepts and which he thinks the British government is backward in not accepting. I hope my short analysis may have convinced them that there are two sides to that question.

"I cannot, however, leave Von Hertling without making some observation upon the Russian policy which he defines. That also is a demonstration of German methods. He tells us the recent arrangements with Russia were made on the urgent appeal of the populations for protection against the red guard and other bands, and, therefore, undertaken in the name of humanity. We know that the east is the east and the west is the west and that the German policy of the west is entirely different from the German policy of the east.

"The German policy in the east recently has been directed toward preventing atrocities and devastation in the interest of humanity, while German policy in the west is occupied entirely in performing atrocities and devastations.

"Why this difference of treatment of Belgium on one side and other populations on the other? I know of no explanation except that Germany pursues her methods with remorseless insistency and alters or varies the excuse she gives for her policy.

"If she invades Belgium, it is military ne

cessity; if Courland, it is in the interest of humanity. It is impossible to rate very high the professions of humanity, international righteousness and equity in regard to those populations which figure so largely in the speeches. I am quite unable to understand how anybody can get up in the reichstag and claim that Germany is waging a defensive Secretary Balfour then contrasted the different methods pursued by Germany and Great Britain in the expansion of their empires, and asserted that Germany's policy has been more deliberately ambitious than that of any nation since Louis XIV.

war.

"We can listen to Von Hertling's criticism with perfect equanimity," he added, "and we are ready to stand our trial at the bar of history. How could conversations take place if Von Hertling's speech represented the extreme high water mark of German concessions?

"Does Mr. Holt really think that if Von Hertling were able to carry out those conversations on the basis of the doctrines contained in his speech the conversations could end in anything but defeat? Does Mr. Holt not think that conversations which begin and end in discord are worse than no conversations at all?"

COUNT CZERNIN'S PEACE SPEECH ON

APRIL 2.

Count Czernin, Austro-Hungarian minister of foreign affairs, speaking to a delegation from the Vienna city council April 2, 1918, said:

"With the conclusion of peace with Roumania the war in the east ended. Before, however, turning to individual peace treaties and discussing them in detail, I would like to revert to the declaration of the president of the United States, in which he replied to the speech delivered by me on Jan. 24.

"In many parts of the world President Wilson's speech was interpreted as an attempt to drive a wedge between Vienna and Berlin. I do not believe that, because I have too high an opinion of the president of the United States and his outlook as a statesman to believe him capable of such a way of thinking. President Wilson is no more able to ascribe dishonorable action to us than we to him. "President Wilson does not desire to separate Vienna from Berlin, and he knows, too. that that would be impossible. Perhaps President Wilson says to himself, however, that Vienna is more favorable soil for sowing the seed for a general peace. Perhaps he says to himself that the Austro-Hungarian monarchy has the good fortune to possess a ruler who sincerely and honestly desires a general peace, but who will never commit a breach of faith or conclude a dishonorable peace, and that behind the emperor-king there are 55,000,000 people.

"President Wilson says also, perhaps, to himself that this united mass represents a force which is not to be underestimated and that this honest and strong desire for peace which binds the monarchs, governments and peoples of both states is capable of being the bearer of that great idea in the service of which he has placed himself."

Referring to his last speech, Count Czernin explained the misunderstanding of his remark that the text was already in the president's possession by declaring that he had previously arranged for the text to be telegraphed to Washington from an unofficial source in a neutral country, in order to prevent any misunderstanding or distortion. It subsequently transpired, however, that the text only arrived at its destination some days later. Nevertheless, he said, the object was attained. He then continued:

"I can only say that I esteem it highly that the German chancellor, in his excellent speech of Feb. 25, took the words out of my

mouth by declaring that the four principles developed in President Wilson's speech of Feb. 11 formed the basis upon which a general peace could be discussed. I am in entire agreement with this.

"God is my witness that we have tried everything possible to avoid a fresh offensive, but the entente would not have it thus.

"Some time before the western offensive began M. Clemenceau addressed to me an inquiry whether and upon what basis I was prepared to negotiate. Jn agreement with Berlin I immediately replied that I was prepared to negotiate and that as far as France was concerned the only obstacle I could see in the way of peace was the French desire for Alsace-Lorraine.

"The reply from Paris was that it was impossible to negotiate on this basis. Thereupon there was no choice left.

"The colossal struggle in the west has already broken out. Austro-Hungarian and German troops are fighting shoulder to shoulder, as they fought in Russia, Serbia, Roumania and Italy. We are fighting together for the defense of Austria-Hungary and Germany. The aspirations of France and Italy are Utopias which will be terribly avenged,

"Come what may, we shall not sacrifice Germany's interests any more than she will leave us in the lurch. We are not fighting for imperialistic or annexationist ends for ourselves or for Germany, but we shall go forward to the last for our defense, for our existence as a state and for our future.

"The first breach in the will of our enemies for war has been made by the peace negotiations with Russia. It was a break-through of the peace idea. It is evidence of childish dilettantism to overlook the inner connection between the various conclusions of peace. The constellation of enemy powers in the east resembled a net-when one mesh was severed the others gave way.

"The Ukrainian peace led to peace with Russia, and Roumania, becoming isolated, was obliged to conclude peace. We had to begin with Ukraine both on technical and material grounds. The blockade had to be broken, and the future will show that the conclusion of peace with Ukraine was a blow at the heart of the rest of our enemies.

from fifteen to eighteen kilometers at all passes of importance, as, for instance, Predeal, Bodz. Gyimes, Bekas and Tolgyes. The new frontier has been so far removed to Roumanian ground as military reasons required. "The rectification east of Czernowitz has protected the city against future attacks. "At the moment when we are successfully borly relations with Roumania, it is unlikely that we would open old wounds, but every one knows the history of Roumania's entrance into the war and will admit that it was my first duty to protect the monarchy against future surprises of a similar kind. "I consider the safest guaranty for the future international agreements to prevent war. In such agreements, if they are framed in binding form, I should see much stronger guaranties against surprise attacks by neighbors than in frontier rectifications. But I thus far, except in the case of President Wilson, have been unable to discover among any of our enemies serious inclination to accept this idea. However, despite the small degree of approval this idea receives, I consider that it will nevertheless be realized.

"Calculating the burdens with which the states of the world will emerge from this war, I vainly ask myself how they will cover military expenditure if competition in armaments remains unrestricted. I do not believe that it will be possible for the states after this war adequately to meet the increased requirements due to the war. I think, rather, that financial conditions will compel the states to enter into a compromise regarding the limitations of armaments.

"This calculation of mine is neither idealistic nor fantastic, but is based upon reality in politics in the most liberal sense of the word. I, for my part, would consider it a great disaster if in the end there should be failure to achieve general agreements regarding the diminution of armaments.

"It is obvious that in the peace with Roumania we shall take precautions to have our interests in the question of grain, food supply and petroleum fully respected. We shall further take precautions that the Catholic church and our schools receive the state of protection they need, and we shall solve the Jewish question. The Jew shall henceforth be a citizen with equal rights in Roumania. "The irredentist propaganda, which has produced so much evil in Hungary, will be restrained, and, finally, precautions will be taken to obtain indemnification for the injustice innocently suffered by many of our countrymen owing to the war.

"We shall strive by means of a new com

"From Russia I did not demand a single meter, but Roumania neglected the favorable moment.

"The protection of mercantile shipping in the lower Danube guarding the iron gate is guaranteed by the extension of the frontier to the heights of Turnu-Severin, by leasing for thirty years a valuable wharf near this town, together with a strip along the river bank at an annual rental of 1,000 lei, and finally by obtaining the leasing rights to the islands of Ostrovo, Marecorbu and Simearu, and the transfer of the frontier several kilometers southward in the region of the Petroseny coal mine, which better safeguards our possessions in the Szurdock pass coal basin.

"Nagy-Szeben and Fogaras will receive a new security frontier of an average width of

union with Roumania. If Roumania will adopt a frank, cordial, friendly attitude toward us we will have no objections to meeting those endencies in Bessarabia. Roumania can gain much more in Bessarabia than she lost in the war."

The minister said he was anxious that the rectifications of the frontier should not leave any embitterment behind, and expressed the opinion that Roumania in her own interest must turn to the central powers.

"In concluding peace with Roumania and Ukraine," he continued, "it has been my first thought to furnish the monarchy with foodstuffs and raw materials. Russia did not come into consideration in this connection owing to the disorganization there.

"We agreed with Ukraine that the quantity of grain to be delivered to the central powers should be at least 1,000,000 tons. Thirty cars of grain and peas are now en route, 600

cars are ready to be transported, and these transports will be continued until the imports are organized and can begin regularly. Larger transports are rendered possible by the peace with Roumania, which enables goods to be sent from Odessa to Danube ports. "We hope during May to undertake the first large transport from Ukraine. While I admit that the imports from Ukraine are still small and must be increased, nevertheless our food situation would have been considerably worse had this agreement not been concluded. "From Roumania we will obtain a considerable surplus of last year's harvest. Moreover, about 400,000 tons of grain, peas, beans and fodder must be transported via the Danube. Roumania must also immediately provide us with 800,000 sheep and 100,000 pigs, which will improve our meat supply slightly.

"It is clear from this that everything will be done to obtain from the exploitation of the regions which peace has opened for us in the east whatever is obtainable. The difficulties of obtaining these supplies from Ukraine are still considerable, as no state of order exists there. But with the good will of the Ukrainian government and our organization we will succeed in overcoming the difficulties. An immediate general peace would not give us further advantages, as all Europe to-day is suffering from lack of foodstuffs. While the lack of cargo space prevents other nations from supplying themselves, the granaries of Ukraine and Roumania remain open to the central powers." Replying to the annexationists, Count Czernin said: "The forcible annexation of foreign peoples would place difficulties in the way of a gencral peace, and such an extension of territories would not strengthen the empire. O'n the contrary, considering the grouping of the monarchy, they would weaken us. What we require are not territorial annexations, but economic safeguards for the future.

"We wish to do everything to create in the Balkans a situation of lasting calm. Not until the collapse of Russia did there cease to exist the factor which hitherto made it impossible for us to bring about a definite state of internal peace in the Balkans.

very

"We know the desire for peace is great in Serbia, but Serbia has been prevented by the entente powers from concluding it. Bulgaria must receive from Serbia certain districts inhabited by Bulgarians. We, however, have no desire to destroy Serbia. We will enable Serbia to develop, and would welcome closer economic relations with

her.

we

"We do not desire to influence the future relations between the monarchy and Serbia and Montenegro by motives conflicting with friendly, neighborly relations. The best state of egoism is to come to terms with a beaten neighbor which leads to this. My egoism regarding Austria-Hungary is that after being conquered militarily our enemies must be conquered morally. Only then is victory complete, and in this respect diplomacy must complete the work of the armies.

"Since I came into office I have striven only after one aim-namely, to secure an honorable peace for the monarchy and to create a situation which will secure to Austria-Hungary future free development, and, moreover, to do everything possible to insure that this terrible war will be the last one for time out of mind. I have never spoken differently. I do not intend to go begging for peace or to cbtain it by entreaties or lamentations, but to enforce it by our moral right and physical strength. Any other tactics I consider would contribute to the prolongation of the war.

"I must say, to my regret, that during the last few weeks and months much has been spoken and done in Austria that prolongs the war. Those who are prolonging the war are

divided into various groups according to their motives and tactics. There are, first, those who continuously beg for peace. They are despicable and foolish. To endeavor to conclude peace at any price is despicable, for it is unmanly, and it is foolish because it continuously feeds the already dying aggressive spirit of the enemy. The desire for peace of the great masses is natural as well as compre. hensible, but the leaders of the people must consider that certain utterances produce abroad just the opposite effect from what they desire. "Firmly relying on our strength and the justice of our cause, I have already concluded thrce moderate but honorable peace treaties. The rest of our enemies also begin to understand that we have no other desire than to secure the future of the monarchy and of our allies, and that we intend to enforce this and can and will enforce it. I shall unswervingly prosecute this course and join issue with any one who opposes me. "The second group of war prolongers are the annexationists. It is a distortion of fact to assert that Germany has made conquest in the east. ple into the arms of Germany. Lenin's anarchy drove the border peoIs Germany to refuse this involuntary choice of foreign border states?

"The German government has as little desire for oppressions as we, and I am perfectly convinced that neither annexationists nor weaklings can prevent forever a moderate and honorable peace. They delay it, but they cannot prevent it.

"The hopes of our enemies of final victory are not merely based on military expectations and the blockade. They are based to a great extent on our interior political conditions and on certain political leaders, not forgetting the Czechs. Recently we were almost on the point of entering into negotiations with the western powers, when the wind suddenly veered round and, as we know with certainty, the entente decided it had better wait, as parliamentary and political events in our country justified the hope that the monarchy would soon be defenseless."

Count Czernin attacked the Czech leaders and Czech troops who, he declared, "criminally fight against their own country, and appealed to the people to be united against this "high treason."

The government, he said, was quite ready to proceed to the revision of the constitution, but this would not be helped by those who hoped through the victory of the entente to gain their ends.

"If we expel this poison," he declared, "a general honorable peace is nearer than the remain aside in this last decisive struggle.' public imagines, but no one has the right to

DENIED BY CLEMENCEAU.

Commenting upon Count Czernin's statemen that France had sought to enter into peace negotiations with Austria-Hungary Premier Clemenceau merely said that "Czernin lied.' It was subsequently explained that Count Revertata, an Austrian, and his distant relative, Count Armand, a Frenchman, had met in Switzerland at the former's invitation, but that nothing resembling authorized peace negotiations had occurred. Count Armand was connected with the intelligence department of the French war department.

On the evening of April 11 the following note was made public by the French government:

"Once caught in the cogwheels of lying, there is no means of stopping. Emperor Charles, under Berlin's eye, is taking on himself the lying denials of Count Czernin and thus compels the French government to supply the proof.

"Herewith is the text of an autograph_letter communicated on March 31, 1917, by Prince Sixtus de Bourbon, the emperor of Austria's brother-in-law, to President Poincare and com. municated immediately, with the prince's consent, to the French premier.

"My Dear Sixtus: The end of the third year of this war, which has brought so much mourning and grief into the world, approaches. All the peoples of my empire are more closely united than ever in the common determination to safeguard the integrity of the monarchy at the cost even of the heaviest sacrifices.

Thanks to their union, with the generous co-operation of all nationalities, my empire and monarchy have succeeded in resisting the gravest assaults for nearly three years. Nobody can question the military advantages secured by my troops, particularly in the Balkans.

"France, on her side, has shown force, resistance, and dashing courage which are magnificent. We all unreservedly admire the admirable bravery which is traditional to her army and the spirit of sacrifice of the entire French

people.

Therefore, it is a special pleasure to me to note that, although for the moment adversaries, no real divergence of views or aspirations separates many of my empire from France, and that I am justified in hoping that my keen sympathy for France, joined to that which prevails in the whole monarchy, will forever avoid a return of the state of war, for which no responsibility can fall on me.

With this in mind, and to show in a definite manner the reality of these feelings, I beg you to convey privately and unofficially to President Poincare that I will support by every means and by exerting all my personal influence with my allies France's just claims regarding Alsace-Lorraine.

Belgium should be entirely re-established in her sovereignty, retaining entirely her African possessions without prejudice to the com. pensations she should receive for the losses she has undergone.

"Serbia should be re-established in her sov. ereignty, and, as a pledge of our good will, we are ready to assure her equitable natural access to the Adriatic and also wide economic concessions in Austria-Hungary.

"On her side, we will demand, as primordial and essential conditions, that Serbia cease in the future all relation with and suppress every association or group whose political object aims at the disintegration of the monarchy, particularly the Serbian political society Narodni Ochrana; that Serbia loyally and by ev ery means in her power prevent any kind of political agitation, either in Serbia or beyond her frontiers, in the foregoing direction and give assurance thereof under the guarantee of the eatente powers.

""The events in Russia compel me to reserve my ideas with regard to that country until a legal definite government is established there.

"Having thus laid my ideas clearly before you, I would ask you in turn, after consulting with these two powers, to lay before me the opinion first of France and England with a view to thus preparing the ground for an understanding on the basis of which official preliminary negotiations could be taken up and reach a result satisfactory to all.

"Hoping that thus we will soon be able together to put a limit to the sufferings of so many millions of men and families now plunged in sadness and anxiety, I beg to assure you of my warmest and most brotherly affection. CHARLES.'

The note adds: "Count Czernin, having recognized by his note of April 8 the existence of this negotiation due to the initiative of a personage of a rank far above his,' the Austrian government now is summoned to give an explanation of the 'attempt' avowed by it and of the details of the conversation of its delegates."

EMPEROR CHARLES DENIES IT. An official statement giving the text of a telegram from Emperor Charles to Emperor William relative to the claim of Premier Clemenceau that the former recognized the claims

of France to Alsace-Lorraine was issued on the same day (April 11) in Vienna. The statement reads:

"I accuse M Clemenceau of piling up lies to escape the web of lies in which he is involved, making the false assertion that I in some manner recognized France's claims to Alsace-Lorraine as just.

"I indignantly repel the assertion. At the moment when Austro-Hungarian cannon are firing alongside of the German artillery on the western front no proof is necessary that I am fighting for your provinces."

war.

HERTLING ON GERMAN PEACE VIEWS. Speaking before the German reichstag July 11, 1918, Chancellor von Hertling said: "I maintain the standpoint of the imperial reply to the peace note of Pope Benedict. The pacific spirit which inspired this reply has also inspired me. At the time, however, I added that this spirit must not give our enemies free conduct for an interminable continuation of the "What have we lived to see, however? While for years there can have been no doubt whatever of our willingness to hold out our hand toward an honorable peace, we have heard until these last few days inciting speeches delivered by enemy statesmen. President Wilson wants war until we are destroyed, and what Mr. Balfour, the British secretary of state for foreign affairs, has said must really drive the flush of anger to the cheeks of every German.

"We feel for the honor of our fatherland, and we cannot allow ourselves to be constantly and openly insulted in this manner, and behind these insults is the desire for our destruction. As long as this desire for our destruction exists we must endure, together with our faithful nation.

"I am also convinced-I know it-that in the widest circles of our nation the same serious feeling exists everywhere. As long as the desire for our destruction exists we must hold out, and we will hold out, with confidence in our troops, in our army administration and our magnificent nation, which bears so wonderfully these difficult times, with their great privations and continuous sacrifices.

"In the direction of our policy nothing will be changed. If, in spite of these hostile statements by these statesmen, any serious efforts or a paving of the way to peace were to show themselves anywhere, then, quite certainly, we would not adopt a negative attitude from the very beginning, but we would examine these seriously meant-I say expressly seriouslyefforts immediately with scrupulous care.

"Naturally it is not sufficient when some agent or other approaches us and says to us: 'I can bring about peace negotiations then and there.' But it is necessary for the appointed representatives of the enemy powers, duly authorized by their governments, to give us to understand that discussions are possible, discussions which for the time being naturally I will be within a limited circle.

"But the statesmen who have spoken up to the present time have not said a word about such possibilities. When such possibilities manifest themselves and when serious inclinations toward peace show themselves on the other side then we will immediately go into them. That is to say, we will not reject them -and we will speak, to begin, within a small circle.

"I also can tell you that this standpoint is not merely my own standpoint but that it is shared emphatically by the chief of the army administration. The chief of the army administration also does not conduct war for the sake of war, but has said to me that as soon as a serious desire for peace manifests itself on the other side we must follow it up.

"You will be interested to know how we are working on this standpoint and certain problems will appear which the present time forces

upon us. Exhaustive discussions took place regarding these questions July 1 and 2 at general headquarters, under the presidency of the kaiser.

"Naturally, I can only announce here quite generally the lines which were laid down at that time. Regarding the east, we stand on the basis of the peace of Brest-Litovsk and we wish to see this peace carried out in a loyal manner. That is the wish of the German imperial administration and it is supported in this by the chief of the army administration.

when it is too late, their criticism stands on weak grounds, for there is no legal right which would have entitled them to condemn the peace conditions which were acceptable to the contracting parties or which could not be avoided.

"If we sum up all that has been said on the enemy's side in regard to their war aims we recognize three groups of aspirations which are being set forth to justify the continuation of bloodshed so that the ideals of mankind may be realized:

"The freedom of all nations, which are to form a league of nations and which in future shall settle their differences by arbitration and not by arms, is to reign.

ernment in Berlin.

"But we may not, and cannot, assume unconditionally that the present Russian government has the power to carry through every where the loyal promises made to us. We do not at all wish to create difficulties for the present Russian government, but, as conditions now are, there are incessant developments and endless frictions in the frontier region. However, our principle is that we stand on the basis of peace made at Brest-Litovsk and we will carry out this peace loyally and will deal loyally with the present government. in"They are still under the depressing fluence of a terrible crime in Moscow. The murder of our ambassador there was an act in violation of international law than which a worse could never cry to heaven.

"All indications point to the fact that the accursed deed was instigated by the entente allies in order to involve us in fresh war with the present Russian government-a state of things which we are most anxious to avoid. We do not want fresh war with Russia. The present Russian government desires peace and needs peace, and we are giving her our support in this peaceful disposition and aim.

"On the other hand, it is true that political currents of very varied tendencies are circulating in the Russian empire-movements having the most diverse aims, including the monarchist movement of the constitutional democrats and the movements of the social revolutionaries. We will not commit ourselves to any political countercurrent, but are giving careful attention to the course Russia is steering."

BARON VON BURIAN'S PEACE VIEWS.

Baron von Burian, the Austro-Hungarian foreign minister, made a report July 16, 1918, to the Austrian and Hungarian premiers in which he said:

"There is hardly any difference between the general principles enunciated by the statesmen of both belligerents. President Wilson's four new points of July 4 shall not, apart from certain exaggerations, arouse our opposition.

"On the contrary, we are able to approve them heartily to a great extent. Nobody would refuse homage to this genius, and nobody would refuse his co-operation. This, however, is not the main point, but it is what can also be understood in the interests of mankind. Both groups should certainly honestly attempt to clear this up and settle it by mutual agreement, but not in the same manner as, for instance, our peace treaties in the east were judged.

"None of the belligerent states need ever come into the position of Russia and Roumania.

"If they, nevertheless, represent the peace treaties as a warning of our treatment of a defeated enemy we do not consider the reproach justified.

The fact is that all our opponents were invited to join in those peace negotiations, and they could have contributed their share in bringing them to a different issue. But now,

"The domination of one nation by another nation is to be excluded.

"Various territorial changes are to be car

"These annexationist aims, though variously shaped, are generally known.

"The intention, however, also exists, especially in regard to Austria-Hungary, to carry out her internal disintegration for the purpose of the formation of new states. Finally our opponents demand our atonement because we dared to defend ourselves and successfullyagainst their attacks. Our ability to defend ourselves is termed militarism and must therefore be destroyed.

"Territorial aims are, in fact, the only things now separating the different belligerent

groups.

"For the great interests of humanity and for the justice, freedom, honor and peace of the world, as set forth in the laws of modern not accept any advice, we also are ready to political conception, regarding which we need fight.

"If our enemies continuously demand atonement for wrong done and restitution, then this is a claim which we could urge with more justification against them, because we have been attacked and the wrong done to us must be redressed.

"The enemy's obstinacy regarding his territorial demands regarding Alsace-Lorraine, Trieste, the Trentino and the German colonies appears to be insurmountable. There lies the limit of our readiness for peace. We are prepared to discuss everything except our own territory.

"The enemy not only wants to cut from Austria-Hungary what he would like for himself, but the inner structure, that of the monarchy itself, too, is to be attacked and the monarchy dissolved, if possible, into component parts.

"Our opponents start from a completely mechanical misjudgment of the character of the Austro-Hungarian monarchy and prefer in their satisfaction to overlook in the present difficult international problems the fact that these states with their various nationalities are no accidental structure, but a product of historical and ethnographical necessity, which carry in themselves the fundamental principle of life and race.

"They therefore possess, and this applies fully to Austria and Hungary, the necessary elasticity and adaptability to the changing events of the times and the ability to reform themselves according to the necessity of their standard of development and to solve all internal crises without uncalled for foreign interference.

"As has always been the case for centuries past, the states and races of the monarchy will settle their internal problems in agreement with their ruler. The monarchy resolutely declines foreign interference in any form, just as it does not meddle with the affairs of foreigners.

"Our enemy's inflammatory activity is not content with trying to stir up our races against one another, but it does not even scruple, by means of circulating monstrous and base cal umnies, to sow distrust between the races of the monarchy and the hereditary dynasty.'