AUSTRIA AND PEACE.

Press, Volume LIV, Issue 16208, 10 May 1918, Page 7

AUSTRIA AND PEACE.

THE EMPEROR KARL'S LETTER

(By Cable.—Presj Association.—Copyright.) (Australian and Cable Association.) (Received May 9th, 7.30 p.m:)

LONDON, May S. The "Manchester Guardian's" Paris correspondent reveals the fact that the Emperor Karl's second letter is more important than the first, Karl declaring that he was convinced that he could induce Germany to make peace provided the Entente's demands were restricted to Alsace-Lorraine. Ivarl issumed that all occupied territori?s would be evacuated and Belgian sovereignty restored unconditionally, out hinted that Germany demanded certain compensations at llussia's expense. Karl stated that he' was already assured of Bulgaria's acceptance. He asked that the letter be confidentially and loyally respected.

M. Poincare suggested that Austria should cede Trieste and the Trentino in exchange for Silesia, but Karl pointed out that France did not occupy Silesia, therefore there was an initial obstacle to negotiations.

The dossier includes an important Austrian statement that Germany was intractable, and if an armistice wcr-j arranged between Austria and the Entents there would be a revolution :n Germany.

M. Ribot rejected th<?> proposals because they would mean a rupture with Italy.

Mr Lloyd George hesitatingly agreed to negative the reply, on which Baron Sonnino insisted. Mr Lloyd George emphasised the importance of the proposals," and urged the desirability of not losing a favourable opportunity for peace.

M. Poincare objected to all negotiations, declaring that a complete military victory would alone end tho war.

Some members of the Foreign Affairs Committee are investigating the dossier. They declare that Karl's proposals would have been turned down without discussion, but for Mr Lloyl George.

It is significant that Count Czernin's peace offer of April 3rd, 1917. was made four days after Karl's letters were sent Both Russia and President Wilson were informed after the proposals had been rejected, too late for President Wilson's opinion to have any effect. It is also considered possible that their rejection made M. Keren sky's position . impossible.

Both Belgium and Roumania favoured meeting vonLanckner, Germany's emissary, in Switzerland.

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