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Updated: September 28, 2025
The "deepened alliance" concluded between Germany and Austria-Hungary in May, 1918, resulting in the complete surrender of Austria's independence, is in fact the natural outcome of a long development and the realisation of the hopes of Mitteleuropa cherished by the Germans for years past.
Indeed they specifically expressed their willingness that it should go to Croatia, whether in the case of Austria-Hungary remaining united or of the detachment of Croatia from it. It is not true that it was through the opposition of Russia or of France that the Italian framers of the London Agreement gave up all claim to Fiume. There was no opposition because there was no claim.
Any redistribution of territory on the basis of nationality must therefore inevitably assign western Istria to Italy, and no reasonable Southern Slav would raise any valid objection. Once more the essential fact to consider is that the acquisition of Trieste and Pola by Italy presupposes the disappearance of Austria-Hungary; otherwise it is not even remotely possible.
The Germans form only 24 per cent. of the population of Austria-Hungary, while in Hungary proper the dominant Magyars do not form quite 50 per cent. of the population. The predominance of the German and Magyar minorities is apparent not only from the fact that they hold the reins of government, but also from their unfair proportional representation in both parliaments.
It was the ambition of Francis Ferdinand to achieve Serbo-Croat unity within the Monarchy, and thus simultaneously to counteract the attractions of Pan-Serb propaganda and to remove the most fertile source of friction between Austria-Hungary and Serbia. His death destroyed the last chance of such a solution; for the statesmen of Vienna and Budapest were not merely incapable but openly hostile.
She was the largest source of supply to Russia, Norway, Sweden, Denmark, Holland, Switzerland, Italy, Austria-Hungary, Roumania, and Bulgaria; and the second largest source of supply to Great Britain, Belgium, and France.
Allied to this design was the movement to forbid citizens of Germany and Austria-Hungary from working in plants supplying munitions to their enemies. Such employment, they were told, was treasonable. The men were offered high wages at other occupations if they would abandon their munition work.
Of Germany's pre-war foreign investments, amounting in all to about $6,250,000,000, not far short of $2,500,000,000 was invested in Russia, Austria-Hungary, Bulgaria, Roumania, and Turkey. And by the system of "peaceful penetration" she gave these countries not only capital, but, what they needed hardly less, organization.
But for the subsidies of Russia and Austria-Hungary the entire people must have migrated long ago, and I have several times heard Montenegrins say, when asked why they did not build more substantial houses, that "they were not going to stay there long, but meant to get a better country."
Meanwhile the internal complications in the southern Slav provinces of Austria-Hungary were growing formidable. Ever since the summer of 1908 arrests had been going on among the members of the Croato-Serb coalition, who were accused of favouring the subversive Pan-Serb movement.
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