563. The Joint Ministries.—By the Compromise of 1867 the three departments of administration which most obviously require concentration and uniformity were established upon a basis of community between the two governmental systems. The first of these is the ministry of Foreign Affairs. Neither Austria nor Hungary as such maintains diplomatic intercourse with other powers; Under the direction of the Foreign Minister (known, until 1871, as the Imperial Chancellor) are maintained all relations with foreign governments, through a diplomatic and consular service which represents in every respect the monarchy as a whole. Commercial treaties, and treaties stipulating changes of territory or imposing burdens upon the state or upon any part of it, require the assent of both the parliament at Vienna and that at Budapest.
The second common ministry is that of War. With respect to military and naval administration there has been no little misunderstanding, and even ill-feeling, between the two states. The instruments of 1867 vest the supreme command of the army and navy in the joint monarch, yet the armed establishments of the states are maintained on the basis of separate, even if approximately identical, laws, and each is placed under the immediate supervision of a separate minister of national defence. Each country maintains its independent arrangements for the raising of the yearly contingent of recruits. It is only after the quotas have been raised that the dual monarch can exercise his power of appointing officers and regulating the organization of the forces. The authority of the joint war minister is confined largely to matters of secondary importance, such as equipment and the commissariat. Only a close understanding between the ministries at Vienna and Budapest can be depended upon, in the last analysis, to avert an utter breakdown of the admittedly precarious military establishment.[712]
The third common ministry is that of Finance. Each of the two states maintains an independent finance ministry and carries its own budget, because, within certain limitations, the administration of fiscal matters is left to the states in their separate capacities; but questions of joint expenditure, the establishment of the joint budget, and the examination of accounts are committed to a common ministry at Vienna. The powers of the joint minister of finance are, in point of fact, limited. Like the other joint ministers, he may not be a member of either the Austrian or the Hungarian cabinet, nor may he have access to the separate parliaments. His function is essentially that of a cashier. He receives the contributions made by the two states to the common expenses and hands them over to the several departments. Until the annexation of Bosnia and Herzegovina, in 1908, it devolved upon him, by special arrangement, to administer the affairs of these semi-dependent territories.
564. Fiscal and Economic Arrangements.—In 1867 it was agreed that the common expenditures of Austria and Hungary should be met, in so far as possible, from the joint revenues, especially the customs, and that all common outlays in excess of these revenues should be borne by the states in a proportion to be fixed at decennial intervals by the Reichsrath and the Hungarian Parliament. Other joint interests of an economic nature—trade, customs, the debt, and railway policy—were left likewise to be readjusted at ten-year intervals. In respect to contributions, the arrangement hit upon originally was that all common deficits should be made up by quotas proportioned to the tax returns of the two countries, namely, Austria 70 per cent and Hungary 30 per cent. As has been pointed out, the periodic overhauling of the economic relationships of the two states has been productive of frequent and disastrous controversy. The task was accomplished successfully in the law of June 27, 1878, and again in that of May 21, 1887. But the readjustment due in 1897 had the curious fortune not to be completed until the year in which another readjustment was due, i.e., 1907. To the parliamentary contests, at both Vienna and Budapest, by which the decade 1897—1907 was filled some allusion has been made.[713] They involved distinctly the most critical test of stability to which the Ausgleich has been subjected since its establishment. During the period various features of the pre-existing arrangements were continued in force by royal decree or by provisional parliamentary vote, but not until October, 1907, were the economic relation of the two states put once more upon a normal basis. Throughout the decade the Emperor-King exercised repeatedly the authority with which he is invested by law of 1867 to fix the ratio of contributions for one year at a time, when action cannot be had on the part of the legislative bodies. The ratio prevailing during the period was Austria 66-46/49 per cent and Hungary 33-3/49 per cent.
By the agreement of 1907, concluded for the usual ten-year period, the Hungarian quota was raised from the figure mentioned to 36.4 per cent. The customs alliance, established in 1867 and renewed in 1878 and 1887, was superseded by a customs and commercial treaty, in accordance with which each state maintains what is technically a separate customs system, although until the expiration of existing conventions with foreign powers in 1917 the tariff arrangements of the two states must remain identical. Under the conditions which have arisen the customs unity of the monarchy is likely to be disrupted in fact, as already it is in law, upon the advent of the year mentioned. Thereafter commercial treaties with foreign nations will be negotiated in the name of the two states concurrently and will be signed, not merely by the common minister of foreign affairs, but also by a special Austrian and a special Hungarian representative.[714]
565. The Delegations: Organization and Sessions.—All legislative power of the Reichsrath and of the Hungarian Parliament, in so far as it relates to the joint affairs of the states, is exercised by two "delegations," one representing each of the two parliaments. The Austrian Delegation consists of sixty members, twenty of whom are chosen by the Herrenhaus from its own members, and the other forty of whom are elected by the Abgeordnetenhaus in such manner that the deputies from each province designate a number of delegates allotted to them by law. The Hungarian Delegation consists likewise of sixty members, twenty elected by and from the upper, forty by and from the lower, chamber, with the further requirement that there shall be included four of the Croatian members of the Chamber of Deputies and one of the Croatians in the Chamber of Magnates. All members of both Delegations are elected annually and may be re-elected. They must be convoked by the Emperor-King at least once a year. Every device is employed to lay emphasis upon the absolute equality of the two Delegations, and of the states they represent, even to the extent of having the sessions held alternately in Vienna and Budapest. The two bodies meet in separate chambers, each under a president whom it elects, but the proposals of the Government are laid before both at the same time by the joint ministry. In the Austrian Delegation all proceedings are conducted in the German tongue; in the Hungarian, in Magyar; and all communications between the two are couched in both languages. Sittings, as a rule, are public. In the event of a failure to agree after a third exchange of communications there may be, upon demand of either Delegation, a joint session. Upon this occasion there is no debate, but merely the taking of a vote, in which there must participate an absolutely equal number of members of the two organizations.
566. The Delegations: Powers.—The members of the common ministry have the right to share in all deliberations of the Delegations and to present their projects personally or through deputies. They must be heard whenever they desire. Each Delegation, on the other hand, has a right to address questions to the joint ministry, or to any one of its members, and to require answers and explanations. By concurrent vote of the two bodies a joint minister may be impeached. In such a case the judges consist of twenty-four independent and legally trained citizens representing equally the two countries, chosen by the Delegations, but not members thereof. The power is one very unlikely to be exercised; in truth, the responsibility of the ministers to the Delegations is more theoretical than actual.
The functions of the Delegations are severely restricted. They extend in no case beyond the common affairs of the two states; and they comprise little more than the voting of supplies asked by the Government and a certain supervision of the common administrative machinery. Of legislative power, in the proper sense, the two bodies possess virtually none. Practically all law in the dual monarchy takes the form of statutes enacted concurrently by the separate parliaments of Austria and Hungary. The system is not ideal. It involves delay, confusion, and an excess of partisan wrangling. Probably upon no other basis, however, would even the semblance of an Austro-Hungarian union be possible. The existing arrangement operates somewhat to the advantage of Hungary, because the Hungarian Delegation is a body which votes solidly together, whereas the Austrian is composed of mutually hostile racial and political groups.
II. The Territories of Bosnia and Herzegovina
567. Annexation of the Provinces, 1908.—By the Congress of Berlin, in 1878, Austria was authorized, ostensibly in the interest of the peace of Europe, to occupy and administer the neighboring provinces of Bosnia and Herzegovina; and from that date until 1908, although the provinces continued under the nominal sovereignty of the Sultan of Turkey, their affairs were managed regularly by the Austro-Hungarian minister of finance. The eventual absorption of the territories by the dual monarchy was not unexpected, but it came in virtue of a coup by which the European world was thrown for a time into some agitation. The revolution at Constantinople during the summer of 1908, accompanied by the threatened dissolution of European Turkey, created precisely the opportunity for which the authorities at Vienna had long waited. October 5, Prince Ferdinand of Bulgaria proclaimed the complete separation of Bulgaria from the Sultan's dominions and assumed the title of king. Two days later Emperor Francis Joseph proclaimed to the inhabitants of Bosnia and Herzegovina the immediate extension of Austro-Hungarian sovereignty over them, alleging that the hour had arrived when they ought to be raised to a higher political level and accorded the benefits of Austro-Hungarian constitutionalism. Among the population of the annexed provinces the Roman Catholic element approved the union, but the Greek Orthodox and Mohammedan majority warmly opposed it. The people of the provinces are Servian in race, and in the interest of the Servian union which it was hoped at some time to bring about Servia and Montenegro protested loudly, and even began preparations for war. The annexation constituted a flagrant infraction of the Berlin Treaty, and during some weeks the danger of international complications was grave. Eventually, however, on the understanding that the new possessor should render to Turkey certain financial compensation, the various powers more or less grudgingly yielded their assent to the change of status.