SIGNOR ANTONIO SALANDRA,
President of the Council and Minister of the
Interior in Italy.

The strong position taken up by Italy spurred Germany to fresh effort at Vienna. For a considerable time Baron Burian held firmly to his contention that it was impossible to settle the question of compensation until it had become clear how Austria-Hungary's enterprise in Serbia would fare. The fact that the Treaty of Alliance provided for previous agreement as to compensation did not appear to trouble him at all. He argued

that it would be most inconvenient for Austria to let military action wait upon diplomatic discussion, and that Baron Sonnino must surely see how awkward it was. The terms of a signed treaty meant no more to AustriaHungary than they did to Germany. Baron Burian twisted and turned and brought up one new argument after another to show why Austria-Hungary should avoid the obligations of Article VII. Each argument was based upon the plea of expediency; each argument attempted to show cause why a pledged word should not be kept. Baron Sonnino never swerved an inch. He met every argument by a patient but firm reiteration of Italy's rights under the treaty, and by a refusal to be led away from the text of Article VII.

On March 10 Baron Sonnino put forward

DUKE OF THE ABRUZZI, Commander-in-Chief of the Royal Italian Navy. period of two weeks should be set aside for discussion, and that if no agreement were arrived at within that time all proposals should be withdrawn.

Difficulties were promptly raised at Vienna. Baron Burian went back to several of his previous arguments, but the chief obstacle lay in Baron Sonnino's second condition, that the cession of territory should follow immediately upon the conclusion of the agreement. Baron Burian flatly refused to accept this condition, and for a few days it looked as though negotiations would not take place at all..

Prince Bülow stepped once more into the breach, and sought to persuade Baron Sonnino that his insistence upon the immediate carrying out of any eventual agreement was not reasonable. He feared that Austria-Hungary would never accept such a condition, and hinted at "the terrible consequences of a rupture between Germany and Italy." Baron Sonnino

was immovable, and replied that he would take no further initiative and make no proposals. Prince Bülow offered the guarantee of Germany. Baron Sonnino reaffirmed the essential condition, and when pressed on the point of Germany's guarantee he recorded his opinion, in an identical Note to the Italian Ambassadors in Berlin and Vienna, that at the end of the war Germany might not be in a position to carry her guarantee into effect.

It was not until March 27 that actual negotiations were begun by a rather vague offer made by Baron Burian to the Duke d'Avarna. This offer spoke of the cession of "territories in South Tyrol, including the city of Trent." Various suggestions were made regarding payments to be made by Italy as part of the

strip of territory in the Trentino would not satisfy any of Italy's requirements.

On April 2 Baron Burian became more explicit. He said that Austria-Hungary was willing to cede the districts (Politische Bezirke) of Trento, Rovereto, Riva, Tione (except Madonna di Campiglio and the neighbourhood) and Borgo. The frontier line would cut the valley of the Adige just north of Lavis. Baron Burian explained that these districts were far from being only "a strip of territory," and hoped that Baron Sonnino would change his opinion about the importance of the cession offered. Four days later, no reply having been received from Rome, Baron Burian asked for counter-proposals. These were sent to the Duke d'Avarna on April 8.

Italy's demands were as follows:

I. The Trentino, with the boundaries fixed for the kingdom of Italy in 1811. (This boundary line would leave the existing frontier at Monte Cevedale (Zufallspitze); run along the mountain ridge between Val Venosta and the valley of the Noce down to Gargazone in the Upper Adige Valley; thence in a straight line to Chiusa (Klausen) across the mountains and the Val Sarentina; thence to join the existing frontier between Monte Cristallo and the Tre Cime di Lavaredo (Dreizinnen), including the Ampezza valley, but leaving out the Gadera and Badia valleys (Gaderthal and Abteithal).) II. A new eastern frontier, to include Gradisca and Gorizia. The line to run from Trogkofel eastwards to Osteruig; thence via Saifritz between the valley of the Seisera and the Schlitzato to the Wischberg; thence along the existing frontier to the Nevea Saddle, whence

ADMIRAL VIALE,
Commander of the Italian Fleet.

Austrian public debt and as indemnification for public works, railways, etc. Baron Burian hoped that the offer might be regarded as a basis for negotiation, but Baron Sonnino's reply was disconcerting. Putting aside for the moment the question of immediate cession, he found the proposals both too vague and too meagre. They did not settle the Irredentist problem; they did not make any appreciable improvement in Italy's military frontier; and they did not represent adequate compensation for the freedom of action which AustriaHungary would enjoy in the Balkans.

REAR-ADMIRAL ENRICO MILLO,

"A

Italian Minister of Marine.

Burian's reply arrived on April 17. It was wholly unsatisfactory. Articles II., III., and IV. were entirely rejected. Article V., which provided for the immediate transference of the ceded territories, was met by the old objections. Articles VI. and VII. were practically refused. Article VIII. was accepted. As regards Article IX., Baron Burian declared that the sum offered was totally insufficient, but suggested that the question of "pecuniary indemnity" should be referred to The Hague. He claimed that the pledge of neutrality offered in Article X. should be extended to Turkey, as the Ally of Austria and Germany, and requested the insertion of an extra clause in Article XI., providing that Italy's renunciation of further claims under Article VII. of the Triple Alliance should cover all such advantages, territorial or otherwise, as Austria-Hungary might gain from the treaty of peace which should terminate the war.

On only a single cardinal point did Baron Burian offer any concession. The frontier he proposed for the Trentino followed a more reasonable course than that of his original

it would drop to the Isonzo east of Plezzo (Flitsch); thence along the Isonzo to Tolmino, whence it would run via Chiaporano and Comen to the sea, which it would reach near Nabresina.

III. Trieste and its neighbourhood, including Nabresina and the judicial districts of Capo d'Istria and Pirano, to be formed into an autonomous State, with complete independence from Austro-Hungarian rule. Trieste to be a free port.

IV. The cession by Austria-Hungary of the Curzolari Islands off the coast of Dalmatia.

V. The immediate occupation by Italy of the ceded territories and the immediate evacuation by AustriaHungary of Trieste and the neighbourhood.

VI. The recognition by Austria-Hungary of Italian sovereignty over Vallona and district.

VII. The renunciation by Austria-Hungary of any claims in Albania.

VIII. A complete amnesty for all political or military prisoners belonging to the territories mentioned in I.-IV

The next three articles provided :

1 (Art. IX.) that Italy should pay to Austria-Hungary as indemnification for loss of government property, as a share of the public debt, and against all money claims, the sum of two hundred million lire.

2 (Art. X.) that Italy should pledge herself to maintain neutrality throughout the war. This applied both to Germany and Austria-Hungary.

3 (Art. XI.) that Italy should renounce any further claims under Article VII. of the Triple Alliance, for the whole duration of the war; and that Austria-Hungary should renounce any claim to compensation for Italy's occupation of the Dodecannesus.

At this time there were persistent rumours of a separate peace between Austria-Hungary and Russia. Baron Sonnino pressed for an early answer to his proposals and Baron

GENERAL VITTORIA ZUPELLI, Italian Minister of War.