6

Report of the Peace Negotiations at Bucharest

The possibility of entering upon peace negotiations with Roumania was considered as soon as negotiations with the Russian delegations at Brest-Litovsk had commenced. In order to prevent Roumania itself from taking part in these negotiations Germany gave the Roumanian Government to understand that it would not treat with the present King and the present Government at all. This step, however, was only intended to enable separate negotiations to be entered upon with Roumania, as Germany feared that the participation of Roumania in the Brest negotiations would imperil the chances of peace. Roumania's idea seemed then to be to carry on the war and gain the upper hand. At the end of January, therefore, Austria-Hungary took the initiative in order to bring about negotiations with Roumania. The Emperor sent Colonel Randa, the former Military Attaché to the Roumanian Government, to the King of Roumania, assuring him of his willingness to grant Roumania honourable terms of peace.

In connection with the peace negotiations a demand was raised in Hungarian quarters for a rectification of the frontier line, so as to prevent, or at any rate render difficult, any repetition of the invasion by Roumania in 1916 over the Siebenbürgen, despite opposition on the part of the Minister for Foreign Affairs. The strategical frontier drawn up by the Army Command, which, by the way, was influenced by considerations not conducive to peace, followed a line involving the cession to Hungary of Turnu-Severin, Sinaia and several valuable petroleum districts in Moldavia. Public opinion in Hungary voiced even further demands. The Hungarian Government was of opinion that the Parliament would offer the greatest hindrances to any peace not complying with the general desire in this respect, and leading Hungarian statesmen, even some among the Opposition parties, declared the rectification of the frontier to be a condition of peace sine qua non. Wekerle and Tisza in particular took this view. Despite this serious difference of opinion, the Foreign Minister, in entire agreement with the Emperor, even before the commencement of the negotiations in the middle of February, took up the position that demands connected with the frontier line should not offer any obstacle to the conclusion of peace. The rectification of the frontier should only seriously be insisted on as far as could be done on the basis of a loyal and, for the future, amicable relations with Roumania. Hungary regarded this lenient attitude on the part of the Foreign Minister with increasing disapproval. We pointed out that a frontier line conceding cities and petroleum districts to Hungary would be unfortunate in every respect. From the point of view of internal politics, because the number of non-Hungarian inhabitants would be thereby increased; from the military point of view, because it would give rise to frontier conflicts with unreliable Roumanian factions; and, finally, from the point of view of foreign policy, because it would mean annexations and the transference of population this way and that, rendering friendly relations with Roumania an impossibility. Nevertheless, it would be necessary for a time to hold fast by the frontier line as originally conceived, so that the point could be used to bring about the establishment in Roumania of a régime amicably disposed toward the Central Powers. The Foreign Minister was particularly anxious to see a Marghiloman Cabinet formed, inaugurating a policy friendly to ourselves. He believed that with such a Cabinet it would be easier to arrive at a peace of mutual understanding, and was also resolved to render possible such a peace by extensive concessions, especially by giving his diplomatic support in the Bessarabian question. He informed Marghiloman also in writing that he would be prepared to grant important concessions to a Cabinet of which he, Marghiloman, was the head, in particular as regards the cession of inhabited places such as Turnu-Severin and Ocna, on which points he was willing to give way. When the Marghiloman Cabinet was formed the Austro-Hungarian demands in respect of the frontier line would, despite active opposition on the part of the Hungarian Government, be reduced almost by half. The negotiations with Roumania were particularly difficult in regard to the question of two places, Azuga and Busteni. On March 24 Count Czernin prepared to terminate these negotiations, declaring that he was ready to renounce all claim to Azuga and Busteni and halve his demands as to the much-debated Lotru district, provided Marghiloman were willing to arrange the frontier question on this basis. Marghiloman declared himself satisfied with this compromise. On the next day, however, it was nevertheless rejected by the Hungarian Government, and not until after further telegraphic communication with the Emperor and Wekerle was the assent of all competent authorities obtained. This had, indeed, been widely considered in Hungarian circles as an impossibility.

Another Austro-Hungarian demand which played some part in the Bucharest negotiations was in connection with the plan of an economical alliance between Austria-Hungary and Roumania. This was of especial interest to the Austrian Government, whereas the frontier question, albeit in some degree affecting Austria as well, was a matter of indifference to this Government, which, as a matter of fact, did not sympathise with the demands at all. The plan for an economical alliance, however, met with opposition in Hungary. Immediately before the commencement of the Bucharest negotiations an attempt was made to overcome this opposition on the part of the Hungarian Government and secure its adherence to the idea of an economical alliance with Roumania—at any rate, conditionally upon the conclusion of a customs alliance with Germany as planned. It proved impossible, however, at the time to obtain this assent. The Hungarian Government reserved the right of considering the question later on, and on March 8 instructed their representatives at Bucharest that they must dissent from the plan, as the future economical alliance with Germany was a matter beyond present consideration. Consequently this question could play no part at first in the peace negotiations, and all that could be done was to sound the leading Roumanian personages in a purely private manner as to the attitude they would adopt towards such a proposal. The idea was, generally speaking, well received by Roumania, and the prevalent opinion was that such an alliance would be distinctly advisable from Roumania's point of view. A further attempt was therefore made, during the pause in the peace negotiations in the East, to overcome the opposition of the Hungarian Government; these deliberations were, however, not concluded when the Minister for Foreign Affairs resigned his office.

Germany had, even before the commencement of negotiations in Bucharest, considered the question of imposing on Roumania, when treating for peace, a series of obligations especially in connection with the economical relations amounting to a kind of indirect war indemnity. It was also contemplated that the occupation of Wallachia should be maintained for five or six years after the conclusion of peace. Roumania should then give up its petroleum districts, its railways, harbours and domains to German companies as their property, and submit itself to a permanent financial control. Austria-Hungary opposed these demands from the first on the grounds that no friendly relations could ever be expected to exist with a Roumania which had been economically plundered to such a complete extent; and Austria-Hungary was obliged to maintain amicable relations with Roumania.

This standpoint was most emphatically set forth, and not without some success, on February 5 at a conference with the Reichskansler. In the middle of February the Emperor sent a personal message to the German Emperor cautioning him against this plan, which might prove an obstacle in the way of peace. Roumania was not advised of these demands until comparatively late in the negotiations, after the appointment of Marghiloman. Until then the questions involved gave rise to constant discussion between Germany and Austria-Hungary, the latter throughout endeavouring to reduce the German demands, not only with a view to arriving at a peace of mutual understanding, but also because, if Germany gained a footing in Roumania on the terms originally contemplated, Austro-Hungarian economical interests must inevitably suffer thereby. The demands originally formulated with regard to the Roumanian railways and domains were then relinquished by Germany, and the plan of a cession of the Roumanian harbours was altered so as to amount to the establishment of a Roumanian-German-Austro-Hungarian harbour company, which, however, eventually came to nothing. The petroleum question, too, was reduced from a cession to a ninety years' tenure of the state petroleum districts and the formation of a monopoly trading company for petroleum under German management. Finally, an economic arrangement was prepared which should secure the agricultural products of Roumania to the Central Powers for a series of years. The idea of a permanent German control of the Roumanian finances was also relinquished owing to Austro-Hungarian opposition. The negotiations with Marghiloman and his representatives on these questions made a very lengthy business. In the economic questions especially there was great difference of opinion on the subject of prices, which was not disposed of until the last moment before the drawing up of the treaty on March 28, and then only by adopting the Roumanian standpoint. On the petroleum question, where the differences were particularly acute, agreement was finally arrived at, in face of the extreme views of the German economical representative on the one hand and the Roumanian Foreign Minister, Arion, on the other, by a compromise, according to which further negotiations were to be held in particular with regard to the trade monopoly for petroleum, and the original draft was only to apply when such negotiations failed to lead to any result.

The German demands as to extension of the period of occupation for five to six years after the general peace likewise played a great part at several stages of the negotiations, and were from the first stoutly opposed by Austria-Hungary. We endeavoured to bring about an arrangement by which, on the conclusion of peace, Roumania should have all legislative and executive power restored, being subject only to a certain right of control in respect of a limited number of points, but not beyond the general peace. In support of this proposal the Foreign Minister pointed out in particular that the establishment of a Roumanian Ministry amicably disposed towards ourselves would be an impossibility (the Averescu Ministry was then still in power) if we were to hold Roumania permanently under our yoke. We should far rather use every endeavour to obtain what could be obtained from Roumania through the medium of such politicians in that country as were disposed to follow a policy of friendly relations with the Central Powers. The main object of our policy to get such men into power in Roumania, and enable them to remain in the Government, would be rendered unattainable if too severe measures were adopted. We might gain something thereby for a few years, but it would mean losing everything in the future. And we succeeded also in convincing the German Secretary of State, Kühlmann, of the inadvisability of the demands in respect of occupation, which were particularly voiced by the German Army Council. As a matter of fact, after the retirement of Averescu, Marghiloman declared that these demands would make it impossible for him to form a Cabinet at all. And when he had been informed, from German sources, that the German Supreme Army Command insisted on these terms, he only agreed to form a Cabinet on the assurance of the Austrian Foreign Minister that a solution of the occupation problem would be found. In this question also we did ultimately succeed in coming to agreement with Roumania.

One of the decisive points in the conclusion of peace with Roumania was, finally, the cession of the Dobrudsha, on which Bulgaria insisted with such violence that it was impossible to avoid it. The ultimatum which preceded the preliminary Treaty of Buftea had also to be altered chiefly on the Dobrudsha question, as Bulgaria was already talking of the ingratitude of the Central Powers, of how Bulgaria had been disillusioned, and of the evil effects this disillusionment would have on the subsequent conduct of the war. All that Count Czernin could do was to obtain a guarantee that Roumania, in case of cession of the Dobrudsha, should at least be granted a sure way to the harbour of Kustendje. In the main the Dobrudsha question was decided at Buftea. When, later, Bulgaria expressed a desire to interpret the wording of the preliminary treaty by which the Dobrudsha "as far as the Danube" was to be given up in such a sense as to embrace the whole of the territory up to the northernmost branch (the Kilia branch) of the Danube, this demand was most emphatically opposed both by Germany and Austria-Hungary, and it was distinctly laid down in the peace treaty that only the Dobrudsha as far as the St. George's branch was to be ceded. This decision again led to bad feeling in Bulgaria, but was unavoidable, as further demands here would probably have upset the preliminary peace again.

The proceedings had reached this stage when Count Czernin resigned his office.