THE BALKAN CLOUD.

Dominion, Volume 2, Issue 459, 18 March 1909, Page 5

THE BALKAN CLOUD.

SERVIA'S CLAIMS,

COMMERCIAL RELATIONSHIP. DEMAND FOR AUSTRIAN ADJUSTMENT. IfJI TKLSGIUfH —I'll ESS ASSCiCI ATION- (JOl'Y'lM Iff.l London, March 16. Tho Servian Circular Note, while expressing rolianco upon tho Powers for the settlement of tho international aspect of tho trouble regarding tlio'annexation of Bosnia and Herzegovina, demands that AustriaHungary shall submit to the Austrian and the Hungarian Parliaments the Austro-Ser-vian treaty of commerce arranged in 1908, as the provisional arrangement expires on March 31. If tlio Parliaments are unable to ratify the treaty, M. Milovanovitch, tho Servian Foreign Minister, will bo willing to continue the existing arrangement throughout 1009.

A MILITARY MENACE. AUSTRO-HUNGARIAN FORCES IN BOSNIA. (Rec. March 17, 11.45 p.m.) Vienna, March 17. Austria-Hungary is emphasising her reply to Sorvia by raising 66 battalions in Bosnia to. a war footing. This is equivalent to adding 40,000 men to the army. RUSSIA, TURKEY, AND BULCARIA. FINANCIAL COMPROMISE. , London, March 16. Tho Russo-Turkish financial compromise covers the Bulgarian indemnity to Turkey. Tho compromise requires the Porto's acceptance, which is practically assured. COMMERCIAL AND POLITICAL ISSUES. CONFLICTING OBJECTIVES. The Austro-Servian . commercial treaty, arranged last year, has not been approved by tho Austrian and Hungarian Parliaments, but its terms are in force under a, modus vivendi. In the first place the modus vivendi was to expire on December 31 last, and a failure to renew it would have meant .a resumption of tho Customs war between tho two countries. Just prior to its expiry—i.e., on December 30— Notes Tere exchanged between the AustroHungarian and/Servian Governments prolonging the modus vivendi for threo months; that is, till March 31. The two countries are now, therefore, confronted with tho samo position as existed in December; only in this case Baron Aerentkal, Austro-Htmgarian Minister for Foreign Affairs, has intimated that he will be prepared to negotiate for a renewal of tho modus vivendi "when Servia assures Austria-Hungary of her intention to maintain peaceful relations." It lias been further stated that Austria-Hungary requires that Servia must reuounco all claim to • territorial compensation arising out of the annexations. What Sorvia has (lone, however, is to "express reliance upon the Powers for the settlement of the international aspect" of the trouble; also, sho "unreservedly places her cause in the hands of the Powers. AustriaHungary, it was cabled yesterday, is "dissatisfied with Servia's determination to throw the I onus of defending lior interests upon the Powers." :

From the point of view of Austria-Hungary, this is natural enough, for sho does not want the Powers to settlo. anything. She wants to settle with Servia direct, in order to, bo able to herself present a Servian settlement as a "fait accompli" to the proposed Conference of the Powers, which will then become merely a registering machine. If tho annexations are an international affair, thf commercial treaty, Austria argues, is not; \and sho will usd the treaty as. a weapon to forco on Servia a settle.mont so that the action of the Powers will become in all respects formal. If Servia, however, is prepared to accept a Customs war as the lossw evil; it is possible that Austria-Hungary's threat nf non-renewal of the modus Vivendi may be ineffectual. "Commercial circles in Belgrade," wrote "The Times" correspondent in December,, "have informed the Government that they are prepared to regard the commercial aspects of the riuestlon as subordinate to its political significance, and will unreservedly sunpftrt the Government if it should see fit not "to prolong the modus, vivendi. . . . In view of the stubborness with which Servia maintained until recently her commercial struggle with Austria, tho threatened renewal of strife in the nresent strained circumstances is serious." The correspondent adds that it is argued in Servia that nAn-renewal of the modus vivendi would constitute "the most complete and effectual bbveott of Austrian goods." Tho great object of Servia. if she cannot enforce her clniijis, is to gain time by maintaining the position f.f Bosnia and Herzegovina as on open European question, and for that nurpose sho endeavours to shelter behind the Powers. Austrift-Hun"ar.y. on the other hand, wishes to estorfc from Servia. n rennnciotionn of hejf claims. This is the crucial i»me now under trial.