THIS New Zealand Herald AND DAILY SOUTHERN CROSS. MONDAY, AUGUST 28, 1922. THE FUTURE OF AUSTRIA.

New Zealand Herald, Volume LIX, Issue 18180, 28 August 1922, Page 6

THIS New Zealand Herald AND DAILY SOUTHERN CROSS. MONDAY, AUGUST 28, 1922. THE FUTURE OF AUSTRIA.

Austria, most distressed of the independent States resulting from the dismemberment of tho old Austrian Empire, has become the poor relation of Europe. Tho new Republic has looked in many directions for assistance; some has been forthcoming, but no aid has been on a scale sufficient to set the country on its feet. Britain, France, Italy and Czecho-Slovakia all advanced credits, acting individually. The immediate effect was beneficial, but it soon became evident that the result was the mere delaying, and not the averting, of financial chaos. The exchange rate resumed its downward course. The Budget was still far from balancing. Governments rose and fell. The financial accommodation given by Czechoslovakia was only one clause of a treaty signed by the two States. While the advance, which took the form of goods, principally coal, came in time only to fill a desperate need, the pact was the cause of severe internal dissension. The pan-German element opposed it from two motives. The treaty involved a mutual recognition of territorial integrity by the two States. The German element objected, as it involved abandoning all hope of winning back again the German population included in Czechoslovakia. The pan-German demand was for union with Germany, a policy against which France has set her face absolutely because it recalled too vividly the old ambition for the hegemony of Central Europe, which, it was felt, might easily be resuscitated by a reconstructed Germany. Austria has already turned once to the other Succession States. It is now stated that the members of the Little Entente— Czecho-Slovakia, Yugoslavia, Rumania and Poland—have agreed to come jointly to the rescue of the new Austria, and that the Czech design of a Central European confederation of States is to receive a further impulse of progress.

Germany, it can be assumed, does not at present offer any material attractions, even to those panGermans in Austria most inclined toward her by race and sentiment. Austria's troubles are essentially economic and financial. Germany appears to be travelling so fast on the same path to chaos that she could serve only as a companion in misery, not a rescuer. It is rescue that Austria requires beyond anything else. The doctrine was assiduously preached for long that the Germans, with their industry, ability and energy, were the only people in Europe capable of infusing new life into the debilitated Austrian State. As 'the mark has come tumbling down until it threatens to rival the crown for depreciation, this sentiment will now be more difficult of credence. The turning eastward for an understanding with other States the old Empire may still be unpopular with those Austrians most strongly German in feeling. Up to the present the greatest obstacle to the realisation of their desire has been the Allied attitude, inspired by France. Now the strong pillar against which they would lean is tottering. Through the mouth of Mr. Lloyd George, Austria has been warned that without some evidence of self-help there is no immediate prospect of help from the Allies. Therefore the movement toward the Little Entente is easily understood. Tho four nations comprising the Entente, together with Italy, Hungary and Austria, conferred this year at Porto Roso over the problem of traffic'' on the railways of the old AustroHungar;an Empire, now divided among them. An agreement was made, this at least affording a precedent for Austria negotiating with her neighbouring States. There will be a further strong mptivo for the endeavour to bring! Austria within'the loose convention observed by the other four Succession States of the Little Entente. Dr. Benes, Prime Minister of Czecho-Slovakia, has long aimed at a Central European bloc to enable the new nations to guide their own destinies and to render them less dependent on the will of the Great Powers. Austria would serve as ah important link in the chain.

The Little Entente arose largely from the necessities of the time. The dismemberment of the Austrian Empire saw Central Europe divided into a number of States which at the outset threatened to reproduce

the pre-war situation in the Balkans. Racial feeling was high, religious differences abounded; mutual antipathies were speedily translated into serious bickerings, with the immediate erection of tariff barriers. This position has not yet been completely met, but, largely owing to the efforts of Dr. Benes, many of the difficulties have been smoothed away. In the rapprochement of Austria the economic issue has been emphasised. Czecho-Slovakia is largely an industrial country, Rumania and Yugoslavia largely agricultural. Economic relations, the need to find markets,, played an important part in their joining hands. Austria, as at present constituted, suffers the handicap of lacking both agricultural and industrial potentialities, the first on account of mountainous territory, the second because of lack of coal. The country, however, is well situated, and Vienna is especially well placed to serve as a clearing house for the commerce of the new States. If an agreement can be reached, followed by some form of customs union by these nations, then Austria may be given, not only present assistance, but a much more substantial prospect of future prosperity. This is aid which the Allied Powers cannot bring. The new Austria is too small in size, too closely hemmed in by other States, and too far from the sea to enter into world-wide commerce. The trade of the Danube may well come her way, however. If the present project ripens, then the other States may combine to give the poor relation of Europe not only temporary aid, but an occupation and a future with renewed self-respect and selfreliance.