VIENNA'S ONLY HOPE.

Oamaru Mail, Volume XLIV, Issue 14044, 29 April 1920, Page 8

VIENNA'S ONLY HOPE.

*By- A. A; Davidson,)

The: political scheme to be adopted by. the Allies for the ' preservation of Austria;must- be one which allows' of the lull development 'of • Austrian resources, prevents injury to other countries, and gives some certainty that the. earning capacity of the country will be such as permits of it bearing' its indebtedness without placing too great:a burden upon the shoulders of .a few. Austria in herself is " valuable economically. She has iron ore sufficient for herself and for export. Her re-sources-in timber are great, and her water-power, though latent, is a rich asset. Her ironworks are noted for ' their tools and machines and wagons, while her textile trade, is of irnportaWe for the Balkans. Her luxury trades too are of international repute, while her workmen are clever and resourceful. Her leaders understand Eastern European markets thoroughly. ,But it lis doubtful whether'these industries are sufficient to enable her to pay for.lier imports,'let-'atane. for loans. For a full economic life,' Austria jriiust 'be co-opted into a -larger ecoiioinic unit. She must join Germany,, orj become a; in-ember of a future Danube Confederation.

Union with Germany, however, has been expressly" forbidden and " renounced: On racial grounds the promay be questioned, but few people would like to see Austria, come under; the influence, and it is greatly ' ; to .be doubted whether the eas y-gpipg Austrian -nature" could resist Prussia, especially now wften power in Germany is more than ever coneentratett to Berlin. There is, too, a repugnance to union felt'--.here by manypeople, who support it only on groundsof economic fear.. There remains, then, the Danube '■ Confederation. The formation of such a Customs unionhas -ofteh' : been discussed; and its 6ut>lines are well known. The'idea- jr to group together all the "States which use the Danube as an outlet into a comnact economic - unit within which Free Trade would qbtaiu: The territory-is such as; by its dimensions and ' the variety of goods produced within it, would 1 make, it an factor in the'; economic wbrjd. There is here no question? of political union; thetoms union would affect solely the economic life of the various How. would Austria benefit by fiUch'a unionP jAtistria and the other States would be enabled to_ buy those raw .materials, coal, "and food, produced in the Danube basin on terms" of free sale and purchase," as before the dissolution pftlie/Monarchy. Perhaps the only cKangc..oil; old;.'conditions would be that the new States, as a' result of their new ■political : liberty,; would develop their rCßcurcea more intensively. But there would'-.be this change on present-day * conditions, that Austria would have certainty -of access to coal and >aw materials, and that Austrian industry, and foreign; confidence in it, : would be strehgth&ned thereby. But even'so,- it : may be -dputeted'''whether the handful of Au'strianjproductive'w'orketSj even when -working"a full output, can produce suf--ficient to, cover the national indebtediiess/" The jii'stitution of the Confederation ,•'• however," would ; pi-obably have a I vital bearing upon the"position of Vifiina,__and its functions m such a Confederation would probably bring con- ' siderable' grist to the Austrian mi!L Peace treaties can change many things, but they cannot change geography. Vienna has proved her necessity to th/s region through centuries and, given Free Trade, -that same nece«=itv will make itself felt again. Whether the

income derived from such "service" cliarges as banking, etc., combined with her'tiidufitne'-, would make Austria economically sound is sc question that e\p<its and time will answer. But unless the combination is tried, Austria mu=t die or join Germany. Sentimpnt can play no part here; we are down | to the bedrock fact that Austria's requirements are more than can be covered by her production.

Many objections can be, and are being, urged against this-proposal. National jealousies, it may be said, are too strong. There is fear that Austria may again obtain political dominance. National pride may not agree' that banking andovhat aot should be carried, on mm foreign country.'or that foreignjndustries should benefit from their f raw materials. " Tndeed this national pride is already greatly at work.. Banks are being "established- in various centres. Main railway-lines are being reduced to subsidiary ones, while, subsidiary lines

are being raised to main lines. New..-ports are being planned on the Danube, or the development, of- backward ones. And-thesis-things are being done not: to satisfy a wairt, but , to strangle foreign competition and render each country .independent, or master. And through such national exclusiveliess lies the. way to madness.and wars.--