AN AUSTRIAN OFFER

Auckland Star, Volume XLVI, Issue 67, 19 March 1915, Page 5

AN AUSTRIAN OFFER

AT GERMANY'S DICTATION

TRANSFER OF BORDER TERRITORY

FATE OF THE KARLSRUHE

REPORTED SUNK IN DECEMBER.

Germany and Austria are making strenuous efforts to induce Italy to maintain her policy of neutrality, if not to go to their active assistance. Under extreme pressure from Germany, which frankly admits to Italy its ability to compel Austria to take whatever course the Kaiser's advisers deem most desirable. Austria has Italy a large slice of the territory in which Italians predominate on the southern slopes of the Dolomite and Venetian Alps, but excluding the Trentino, while demanding a monetary return for the loss of territory. The Italians demand a far greater share of the lands of the crumbling Hapsburg dynasty, extending across to the Julian Alps, a hundred miles further to the eastward, and absorbing the sea coast as far as Fiume. It is believed that the differences between the two nations are too great to be capable of adjustment. It is reported from two sources that the last of the raiding cruisers, the Karlsruhe, was sunk by an explosion in the North Atlantic over two months ago. Danish reports state that the survivors, sworn to secrecy, have reached Germany. The Belgians have made another slight advance in Flanders, while the British are maintaining the attack which has proved so brilliantly successful in the Neuve Chapelle region. It is believed that General French has his eye on Lilie, possession of which by the British would seriously hamper German communications. The Russians are very optimistic, believing that the Alliessuccesses in the west will compel a weakening of the German forces in the east, and that the fall of Przemysl must soon be announced. The organisation of industries having a direct bearing on the war is being firmly undertaken by the Government, who desire to prevent strikes interfering with the progress of the manufacture of munitions and to increase the output by abolishing restrictions upon hours of labour. A Labour Committee has appointed to assist the Government, and by a system of limitation of profits it is hoped to eliminate causes of friction between Capital and Labour.