THE New Zealand Herald AND DAILY SOUTHERN CROSS. WEDNESDAY, JUNE 11, 1913. THE BALKAN SITUATION.

New Zealand Herald, Volume L, Issue 15325, 11 June 1913, Page 6

THE New Zealand Herald AND DAILY SOUTHERN CROSS. WEDNESDAY, JUNE 11, 1913. THE BALKAN SITUATION.

The Balkan Peace Congress has dissolved without any definite settlement of the points at issue. Sir Edward Grey received great commendation throughout Europe for exercising diplomatic pressure upon recalcitrant Balkan States and thereby inducing them to be represented at a conference which was to settle all Balkan problems. Evidently it is easier to persuade a State to take part in a conference than to persuade rival States to agree in conference, for the only important result of the Berlin gathering is the resolution that "definite results can be more easily attained by separate acts of the respective governments." This was the original attitude of the Balkan States when forced to conference by the energetic language of the British Foreign Secretary and after the lapse of several weeks they hold it unaltered in the face of European threats and arguments. The difficulty with the European Concert is, of course, that in the Balkans it is thoroughly and completely discredited. The European Concert was practically pledged to the reform of monstrous abuses in Macedonia yet did absolutely nothing to relieve that wretched land from the intolerable misrule of the Turk. Western Europe is accustomed to think of political discontent as arising from such alien rule as that exercised by the German Reichstag over Alsace-Lorraine or by the British Government over Egypt. Nothing is more difficult than to bring convincingly home to the minds of Western Europeans the simple fact that British rule in Egypt is better than any self-government could be, while Turkish rule over Christian provinces is invariably worse than the worst possible form of independence. The Turk as a ruler of Mahommedans is hopelessly unfit; the Turk as a ruler of Christians is beneath reproach. In Macedonia the Turk was allowed to continue his horrible methods and intolerable incapacity, his official corruption and his tacit encouragement of anarchy and rapine, although the European Powers had pledged themselves to give good government to that despairing province. The Turk was driven out by the Balkan peoples themselves, riot only without assistance from the European Concert but in the face of threats from the European Concert. The hope that animates the Balkans to-day is bound and twined with the belief that the European Concert is a mere term and that international understandings are wholly meaningless. The Balkan States know that they were solemnly threatened by the European Powers with the restoration of the old frontiers whatever the results of the attack upon Turkey. This weaving of words which had no weight and were not translated into action has necessarily convinced the Balkans that European Powers threaten and promise much, but do i little or nothing.

The effect of this attitude on the part of the Balkan States would be to paralyse all attempts to interfere with their own solutions of peninsular problems were it not that they are now divided. Greece and Servia are especially offended with Bulgaria's claim to the lion's share of the spoil, while all the States are sullenly determined to extract indemnity from Turkey. It may be said that Turkey is not in a posi-

tion to pay indemnity, and will not pay indemnity, but this assertion ignores the relation of the redeemed provinces to the Turkish Exchequer and the Turkish bondholders. Indemnity might easilybe arranged by releasing Macedonia and Thrace from all financial obligation to the creditors of the Porte and transferring this obligation to the remaining provinces and vilayets of the Turkish Empire. This would. load Asia Minor with an increased proportion of taxes which interest-bearing loans annually impose, but as Asia Minor poured its levies to resist the Balkan crusaders and thus tremendously increased their expenses and their sufferings it may be held equitable enough that Asia Minor should pay. Turkish bondholders are naturally eager to obtain the best security and will exert their influence to the utmost in order to prevent their claims upon Macedonia being transformed into a claim upon Armenia. Unfortunately for foreign bondholders, fortunately for British borrowers, there is still a reluctance on the part of civilised government to fill too flagrantly the role of debt-collecting bailiffs. Money would be dearer than it is if every speculator who lent on doubtful security could call on an army and navy to collect his accounts free of cost to him; and money would be cheaper than it is in lawabiding and honest countries if under no circumstances whatever were . debt-collecting permitted to influence international politics. The Balkan States could certainly exact indemnity of the class in question, and could make any other terms within reason, if they were united. •No European combination would dare to attack a united Balkan Federation, for the million men of these plucky and earnest peoples would easily turn the scale between the two great forces which now occupy hostile camps in the European comity of nations. But the Balkan Federation is divided. As their enemies expected and their friends feared the allies who broke down the Turkish Empire in Europe have quarrelled in**the hour of victory. They still believe that Europe will not interfere and it is possible that European divisions will prevent serious interference on the part of any individual Power, but it is often the unexpected that happens. If interference or intervention commences the situation is so delicate that the most serious complications may arise. This is the reason for the anxiety of Sir Edward Grey to make peace between all parties and at any price.