AUSTRIAN PEACE TERMS.

New Zealand Herald, Volume LVI, Issue 17167, 22 May 1919, Page 7

AUSTRIAN PEACE TERMS.

FINANCIAL PROBLEMS.

PARTITIONING WAR DEBT.

INDEMNITY IMPOSSIBLE.

Australian and N.Z. Cable Association. (Reed. 6.10 p.m.) LONDON, May 20.

The Council of Four, in framing the Austrian terms, has probably endeavoured to offer reasonably lenient conditions with a view to effecting the detachment of Austria from Germany.

The financial situation of AustriaHungary with regard to the war debt is a difficult problem. The monarchy is so carved up into new States that repudiation must inevitably occur. It ■is certain that the newly-created States are not likely to shoulder any portion of the Austrian debt during the war, although they are not unwilling to bear a just proportion of the debts incurred before the war.

Any financial indemnity from what is left, of tho Austrian Empire seems out of the question, but she will have to comply with naval, military and air terms similar to those imposed on Germany.

HANDING OYER OF THE FLEET.

Nearly five months after tlic armistice was signed Austrian warships were handed over to Italy. The ceremony took place on March 23, at Venice. '1 he delay in the consignment of the fleet was due to one of the last acts of the F.mperor Charles of Austria who, by an Imperial decree, handed the entire Austro-Hun-garian fleet over to those .Tugo-Slavs who had been his most faithful supporters to the very last days of the war. By that act ho hoped to prevent, it from falling into the hands of Italy. He actually succeeded in delaying this transfer for five months. It was to the Croats and Slovenes that the Austrian fleet was specially assigned. Thty took immediate possession of the Austrian ships, and when, after the armistice was signed, the Italian fleet steamed into Po'.n, it was received with sullen demonstrations by the Jugoslavs of Croatia and Slovenia, who refused to hand over the Austrian navy, and were on the verge of open hostility to Italy. It required five months' patient waiting and negotiations before the matter was settled.

Venice was decorated, and presented a festive appearance for the occasion. King Victor Emmanuel and the official party set out on board the Aud.ve, together with tho British, French, and Japanese naval attaches, to meet the ex-enemy fleet, which, escorted by Italian warships, was encountered five miles outside Venice. Tho sight was an impressive one. Tho last viutige of the former jroM military empire was represented bv this fleet. The vessels were steaming slowly, in single file, without any flag, and mr.nned by Italian sailors. Fiist came two modern cruisers, the Admiral Snaun and the Franz Ferdinand. Then the dreadnought Admiral von Tecrethoff, and finally » numerous flotillr. of torpedo boats, destroyers, and submarines. The engines were stopped, and the fleet remained motionless. Tho destroyer Atidacc then, with the King and the official nartv on board, steamed round the entire fleet, which was thus passed in review by King Victor Emmanuel, and when this ceremony was over the captured wamhips slowly started for the port of Venice, whe'-e they appeared at three o'clock. Their arrival was hailed by a vast crowd assembled on the ni'f.ys, all the bells of the Venice churches pealed out, and sirens were sounded in sign of public rejoicing.