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We had selected the island of Vranjina for our headquarters, known in history as the site of a famous treaty signed there between the Montenegrins and Venetians in the first half of the fifteenth century. It lies at the north or Montenegrin end of the lake.

It was proved that he was killed by bayonets, and the tale of the Montenegrins that he had been shot when trying to escape was devoid of foundation, there being no gunshot wounds in the body. The case was gone into fully. Austria a second time accepted apology and certain compensations, and failed to respond to provocation. No Russian intervention could now be expected.

Most Montenegrins derive their livelihood, directly or indirectly, from smuggling, bootlegging and illegal immigration. Drugs are a major "export" earner in Macedonia and Albania. The prime example is Japan, which constructed its whole mega-economy on these bases. Both Bulgaria and Russia are Meccas of piracy.

Scutari, as a whole, expressed disgust for the Montenegrins: "Nikita," folk said, "is our enemy. But he has done well for Montenegro. If God had given us a Prince like him we should have known how to value him."

Montenegro, meanwhile, went rabid because her special envoy to Belgrade, Yanko Vukotitch, cousin to the Princess, was stopped, and, it was said, searched on Austrian territory. Things were touch and go. The Montenegrin army was preparing to fall on Cattaro. War seemed inevitable, for England's attitude caused the Montenegrins to believe that they had only to begin and British aid was certain.

No railways were allowed to be built in Dalmatia, communication between Agram and any other parts of the monarchy except Fiume or Budapest was rendered almost impossible; Bosnia and Hercegovina were shut off into a watertight compartment and endowed with a national flag composed of the inspiring colours of brown and buff; it was made impossible for Serbs to visit Montenegro or for Montenegrins to visit Serbia except via Fiume, entailing the bestowal of several pounds on the Hungarian state steamers and railways.

The Montenegrins were forced to fall back to their second line; but they contested every inch of ground and by the time they had been forced out, reinforcements began to arrive. The second line of trenches held in spite of all attempts of the enemy to force them. Reinforcements continued to arrive.

Nikita had shown plainly that he regarded the event as a very important step in Serb history. And he wanted me to go to Belgrade. But to me the situation was rather obscure. I knew Montenegro was unpopular in Serbia. Perhaps Nikita did not. For purposes of their own the Montenegrins had risked my life according to their own statements by sending me to Ipek.

Petar was of opinion that war was inevitable, otherwise all the plans of the Serbs for Great Serbia were ruined. Serbs and Montenegrins must act as brothers.

At the gate of Spuz we were stopped and our passports were demanded. Mine had been visaed at Ragusa for Mostar, and Gosdanovich had the Russian passport, which is freely accorded to all Montenegrins. The sentinel could read neither, and sent them to the konak with a demand for instructions.