4. In what manner it was to be organised (by general franchise, by a vote of the nobles, etc.). It would be advisable, and would also be in accordance with the principles adopted by Russia, to leave the decision on all these points to the people themselves, and deliver them over to the "temporary self-administrative body," which should, also according to the Russian proposal (Kameneff), be introduced at once. The whole of the peace negotiations could then be concentrated upon a single point: the question as to the composition of this temporary body. Here, however, a compromise could be arrived at, as Russia could agree that the already existent bodies set in the foreground by Germany should be allowed to express a part of the will of the people, Germany agreeing that these bodies should, during the occupation, be supplemented by elements appointed, according to the Russian principles, by free election.

On February 7, immediately after Herr Kühlmann had agreed to mediation on this basis, the Foreign Minister saw the leader of the Russian delegation, Trotski, and had a series of conversations with him. The idea of compromise on the lines just set forth was little to Trotski's taste, and he declared that he would in any case protest against the handling of the self-determination question by the Four Powers. On the other hand, the discussion did lead to some result, in that a new basis for disposing of the difficulties which had arisen was now found. There was to be no further continuance of the conflict as to whether the territorial alterations involved by the peace should be termed "annexations," as the Russian delegates wished, or "exercise of the right of self-determination," as Germany wished; the territorial alterations were to be simply noted in the peace treaty ("Russia notes that ..."). Trotski, however, made his acquiescence to the conclusion of such a compact subject to two conditions: one being that the Moon Sound Islands and the Baltic ports should remain with Russia; the other that Germany and Austria-Hungary should not conclude any separate peace with the Ukrainian People's Republic, whose Government was then seriously threatened by the Bolsheviks and, according to some reports, already overthrown by them. The Foreign Minister was now anxious to arrive at a compromise on this question also, in which he had to a certain degree the support of Herr von Kühlmann, while General Hoffmann most vehemently opposed any further concession.

All these negotiations for a compromise failed to achieve their end owing to the fact that Herr Kühlmann was forced by the German Supreme Army Command to act promptly. Ludendorff declared that the negotiations with Russia must be concluded within three days, and when a telegram from Petersburg was picked up in Berlin calling on the German Army to rise in revolt Herr von Kühlmann was strictly ordered not to be content with the cessions already agreed to, but to demand the further cession of the unoccupied territories of Livonia and Esthonia. Under such pressure the leader of the German delegation had not the power to compromise. We then arrived at the signing of the treaty with Ukraine, which had, after much trouble, been brought to an end meanwhile. It thus appeared as if the efforts of the Foreign Minister had proved fruitless. Nevertheless he continued his discussions with Trotski, but these still led to no result, owing to the fact that Trotski, despite repeated questioning, persisted in leaving everything vague till the last moment as to whether he would, in the present circumstances, conclude any peace with the Four Powers at all or not. Not until the plenary session of February 10 was this cleared up; Russia declared for a cessation of hostilities, but signed no treaty of peace.

The situation created by this declaration offered no occasion for further taking up the idea of a separate peace with Russia, since peace seemed to have come via facta already. At a meeting on February 10 of the diplomatic and military delegates of Germany and Austria-Hungary to discuss the question of what was now to be done it was agreed unanimously, save for a single dissentient, that the situation arising out of Trotski's declarations must be accepted. The one dissentient vote—that of General Hoffmann—was to the effect that Trotski's statement should be answered by declaring the Armistice at an end, marching on Petersburg, and supporting the Ukraine openly against Russia. In the ceremonial final sitting, on February 11, Herr von Kühlmann adopted the attitude expressed by the majority of the peace delegations, and set forth the same in a most impressive speech. Nevertheless, a few days later, as General Hoffmann had said, Germany declared the Armistice at an end, ordered the German troops to march on Petersburg, and brought about the situation which led to the signing of the peace treaty. Austria-Hungary declared that we took no part in this action.

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.