AUSTRO-SERVIAN CRISIS.

Sun (Christchurch), Volume I, Issue 146, 27 July 1914, Page 10

AUSTRO-SERVIAN CRISIS.

WAR DECLARATION NOT CONFIRMED.

DETAILS OF SERVM'S REPLY.

AGREEMENT AND PROTEST,

FINAL APPEAL TO THE HAGUE.

By Cable. —Tress Association.—Copyright. (Received July 27, 2 p.m.) LONDON, July 26. There is no confirmation of the declaration of war. Reuter states that Austria's military preparations will give Servia time to reconsider her reply. PARIS, July 26. Servia's reply accepts several of Austria's demands, including those regarding the dissolution of anti-Austrian societies, and the punishment of officials, but protests against the proposal for the establishment of Austro-Hun-garian police in Servia. Servia will make a final appeal to The Hague Tribunal.

THE CAPTURED GENERAL.

RELEASED AND SENT HOME

VIENNA, July 26,

The military regulations provide for the detention of any officer of a hostile Power in the event of the imminence of war. General Putnik was treated with every courtesy. The Emperor ordered his immediate liberation and General Putnik was sent on a special train to Servia.

EFFECT ON NEW ZEALAND.

THE DEVELOPMENT POLICY.

[From our own Parliamentary ZJeporter.J WELLINGTON, July 27. The declaration of war must place New Zealand in a very serious position. A SUN representative attempted to get news from Cabinet on the situation to-day, but Ministers are naturally extremely reticent. At the same time they cannot conceal their very great anxiety. Government has decided on a policy of wide development this year, which, together with the renewal of loans, it is an open, secret, would involve from over at least £10,000,000. The danger of a 3erious international conflict is so imminent that the world's money market is bound to be seriously affected. Already, as reported by cable, consols have dropped 40/- in one day, which is, perhaps, the most serious movement on the maxket reported for many years. If the trouble spreads New Zealand is bound to suffer seriously, and the raising of themoney necessary for development will become the most difficult task set Ministers in recent year 3. U uless everything is quiet and confidence is restored within the next month or two, the Government will have no other course but to curtail or suspend the development policy.