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to the effect that Baron Banffy's statement was unauthorised, thereby making it impossible for Count Kalnoky to remain in the Ministry. Count Goluchowski, the new Foreign Minister, was appointed on May 20. He was a member of an old Polish family, and had long been in the diplomatic service, where he had acquired a great reputation for statesmanlike ability. The speech on foreign affairs made by the Count to the Austro-Hungarian delegations in June, presented a remarkable contrast to the long and laboured statements which it was the annual habit of Count Kalnoky to make on such occasions. He merely stated that he was a faithful and convinced adherent of the policy pursued by his predecessor with as much good fortune as ability, and that the change in the Foreign Ministry was only one of persons, and not of system. The policy alluded to was defined as an unfaltering adhesion to the pacific Alliance of the three Central Powers of Europe, which also implies the cultivation of the best and most friendly relations with all other Powers, without exception." These friendly relations," added Count Goluchowski, as they are now, answer so unconditionally the ends and objects of this country's alliance with Germany and Italy, that their maintenance is with us a matter of duty, and you may rest assured that I shall leave nothing undone towards its fulfilment. The results hitherto obtained have been so satisfactory that we could not wish for anything better, and the actual condition of things arising out of this policy accords with the traditions and aspirations of this monarchy, which are far from aggressive, and find full satisfaction in the pacific development of our relations with other countries, in the strengthening of our prestige and influence abroad, and in the progress and well-being of the people."

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The relations of Austria-Hungary with the other Powers of Europe continued to be satisfactory throughout the year. The jealousy shown by the press of Germany at the prosperity and increasing development of the British Empire was to some extent echoed by the German press of Austria, but this feeling did not meet with any sympathy in the organs of the Slavonic majority. The visit of the German Chancellor to Vienna at the end of the year, and the presence of the Emperor Francis Joseph at the autumn manoeuvres in Germany, showed that there was no weakening in the feelings of cordiality between the two sovereigns and their respective Governments. Finally, the re-establishment, on Count Goluchowski's initiative, of the European concert, though it made but little progress towards a solution of the Armenian question, contributed not a little to the avoidance of the dangers which that question had raised.

CHAPTER III.

EASTERN EUROPE.

I. RUSSIA.

THE year was uneventful in Russia as regards home affairs. The veil of mystery which had been hanging over the new Czar's policy since his accession remained impenetrable, and the birth of a daughter to the Emperor and Empress, on November 15, had no effect as regards withdrawing the Czar from the retirement in which he lived during his wife's confinement. His only public utterance during the year seemed to point to a reactionary current in his views as to the home. policy of the empire. The delegates of the nobility, of the Zemstvos or local councils, and of the municipalities of the principal towns having come to St. Petersburg to offer their congratulations to the Emperor and Empress on the occasion of their marriage, he thus addressed them, speaking in a loud voice and with much emphasis: "I rejoice to see gathered here representatives of all estates of the realm who have come to give expression to their sentiments of loyal allegiance. I believe in the sincerity of these feelings, which have been those of every Russian from time immemorial. But it has come to my knowledge that latterly, in some meetings of the Zemstvos, voices have made themselves heard from people who have allowed themselves to be carried away by foolish fancies about the participation of representatives of the Zemstvos in the general administration of the internal affairs of the State. Let all know that I devote all my strength to the good of my people, but that I shall uphold the principle of autocracy as firmly and unflinchingly as did my ever-lamented father."

In Poland, too, the hopes excited by the appointment of Count Schouvaloff as Governor of Warsaw ended in disappointment. The count was a great contrast to his predecessor General Gourko as regards urbanity of manners, but in his acts he proved himself a Russian of the Russians, and there was no relaxation in the efforts of the Government to suppress the Polish language and every other manifestation of Polish nationality.

In foreign affairs, on the other hand, the Russian Government was unusually active, though all its efforts were directed to the preservation of peace. Its first notable achievement of the year was the final settlement of the Pamir difficulty. The arrangement arrived at in this matter between the British and Russian Governments is described in the following extract from a despatch from Lord Kimberley to M. de Staal, the Russian Ambassador in London :

"1. The spheres of influence of Great Britain and Russia

to the east of Lake Victoria (Zor Koul) shall be divided by a line which, starting from a point on that lake near to its eastern extremity, shall follow the crests of the mountain range running somewhat to the south of the latitude of the lake as far as the Bendersky and Orta-Bel Passes.

"From thence the line shall run along the same range while it remains to the south of the latitude of the said lake. On reaching that latitude it shall descend a spur of the range towards Kizil Rabat on the Aksu River, if that locality is found not to be north of the latitude of Lake Victoria, and from thence it shall be prolonged in an easterly direction so as to meet the Chinese frontier.

"If it should be found that Kizil Rabat is situated to the north of the latitude of Lake Victoria, the line of demarcation shall be drawn to the nearest convenient point on the Aksu River south of that latitude, and from thence prolonged as aforesaid.

"2. The line shall be marked out, and its precise configuration shall be settled, by a joint commission of a purely technical character, with a military escort not exceeding that which is strictly necessary for its proper protection.

"3. The commission shall also be charged to report any facts which can be ascertained on the spot bearing on the situation of the Chinese frontier, with a view to enable the two Governments to come to an agreement with the Chinese Government as to the limits of Chinese territory in the vicinity of the line, in such manner as may be found most convenient.

"4. Her Britannic Majesty's Government and the Government of his Majesty the Emperor of Russia engage to abstain from exercising any political influence or control, the former to the north, the latter to the south, of the above line of demarcation.

"5. Her Britannic Majesty's Government engage that the territory lying within the British sphere of influence between the Hindu Kush and the line running from the east end of Lake Victoria to the Chinese frontier shall form part of the territory of the Ameer of Afghanistan, that it shall not be annexed to Great Britain, and that no military posts or forts shall be established in it.

"The execution of this agreement is contingent upon the evacuation by the Ameer of Afghanistan of all the territories now occupied by his Highness on the right bank of the Panjah, and on the evacuation by the Ameer of Bokhara of the portion of Darwaz which lies to the south of the Oxus, in regard to which her Britannic Majesty's Government and the Government of his Majesty the Emperor of Russia have agreed to use their influence respectively with the two Ameers."

The result of this arrangement was that the Joint AngloRussian Commission, which terminated its labours in July, laid down the northern frontier of Afghanistan from Zulfikar on

the Heri-Rud to the Pamirs. The line follows the course set forth in the Anglo-Russian agreement of 1873 up to the Victoria Lake. A banquet was given by the British members of the commission to the Russian delegates on the occasion, at which Major-General Gerard, in proposing the health of the Emperor, announced that it was intended to give the name of "Nicholas II." to the highest snow-clad summit in the immediate vicinity of Lake Victoria.

The veteran Minister of Foreign Affairs, M. de Giers, who had been the director of Russia's foreign policy since the Treaty of Berlin, died while the negotiations on the above subject were in progress (Jan. 27), and Prince Lobanoff, Russian Ambassador at Berlin, was appointed to succeed him on March 11. The appointment was received with great satisfaction, especially in Germany, where the Prince's diplomatic and social qualities were much appreciated. The following significant remarks on the new foreign policy of Russia were made on the occasion. by the News (Novosti), of St. Petersburg:

"The death of M. de Giers has given occasion to conjecture in the European press as to what line of policy Russia will now follow. Many years have passed since the axiom was invented that the road to Constantinople lay through Vienna, and the Eastern Question has been relegated to the background. No trace remains of the former enthusiasm for the Balkan Slavs in general and the Bulgarians in particular. There can be no doubt that the bulk of Russia looks upon the Eastern Question with indifference. The Russian character is quick to take fire and quick to burn out, and German politicians have always kept this in view. . The melancholy experience of Russia in Bulgaria showed European diplomatists that the spectre of Panslavism was not very formidable, and the question of a free passage through the Dardanelles lost its burning' importance from the moment of the English occupation of Egypt.

"The year 1882 was a critical one in the history of the Eastern Question. The occupation of Egypt transferred the centre of gravity from Constantinople to Cairo, and the English, having gained their point, ceased to interest themselves in the same degree in Constantinople.

"Russia found herself face to face with the Triple Alliance alone, which was confronted, without the support of England, with a concerted action of Russia and France. Not to mention Germany and Italy, Austria succeeded only in straining her relations by the game she played in the Bulgarian Coburgiad.

"The idea of a partition of Turkey between Austria and Russia has never been viewed with favour in St. Petersburg. Is there any reason to think that these views have changed? We believe not. Russian policy now, as formerly, cannot refuse moral and political solidarity with the Balkan Slavs. But Russia does not think of a partition so much as of preserving those peoples from being swallowed up by Austria. It would

be hypocrisy for us to predict a rapprochement with Austria. A peaceful co-existence of the two countries is possible without raising the delicate question of spheres of influence. In time the Eastern Question will be solved, as far as Austria is concerned, by those very nationalities which, by the help of Russia and in spite of Austria, have founded their independence on the ruins of the Turkish Empire. We are convinced that these nations will not allow themselves to be absorbed by Austria, notwithstanding the great ingratitude they have shown to Russia. Panslavism is a spectre which frightens nobody. Russia threatens no one, but she has historical traditions, and will always watch over the weal of the Balkan Slavs, quite independently of the direction of her general policy."

The first measure taken by Prince Lobanoff in his new capacity was the issue of a circular to the Russian representatives in the Balkan Peninsula directing them to abstain from all interference with the domestic affairs of the States to which they are accredited, and stating that the Czar's Government is in favour of an independent development of those States. This policy was also pursued by Russia in the Armenian question. She joined England and France in urging the Sultan to grant reforms to Armenia, but refused to apply any coercion to the Turkish Government for this purpose. In Russia, as in France and Germany, the British Government was believed to be actuated by motives of self-interest in its intervention on behalf of the Armenians; and some sensation was created by a very bitter attack on England which appeared in an article on this subject in the official Messenger of October 29. An explanation, however, was issued by the Foreign Office to the effect that the article in question did not appear in the official part of the paper, and that it was not in any way inspired by the Russian Government. With France the relations of Russia continued to be extremely cordial, though there was still no proof of an alliance having been actually concluded between the two countries. An article by M. Valfrey, formerly of the French Foreign Office, published in the Figaro on July 3, made the following remarks on this subject:

"If there exist Frenchmen so blind as to suppose that an understanding has been come to between France and Russia with a view to the contingency at an early date of a war of aggression against Germany, I can formally and absolutely declare that they are mistaken. No doubt, if Germany were to be beset by such difficulties as to paralyse her movements against us, no power, human or divine, could prevent us from attempting to tear up the treaty of Frankfort, but in the meanwhile we have got to live on and promote our development. Therefore, the Franco-Russian alliance is strictly defensive. It involves on our part, without its being expressly specified, the indirect acceptance of the treaty of Frankfort and of the frontiers it has assigned to us. As to that point there can be

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