MAIN STAIRWAY IN THE AMERICAN EMBASSY, BERLIN

Berliners say that although the German Emperor gave the Duchess of Hohenberg all the honours due to the wife of an Austrian Archduke, heir to the throne of the Austrian Empire, he was careful not to bring her claims in direct conflict with any Prussian female Royalty and that on the first visit of Franz Ferdinand and his wife to Potsdam, when the doors of the banquet room were thrown open, it was seen that the Kaiser had skilfully placed all the guests at small tables, sitting at one with the Empress and his two guests. In this way he prevented a conflict of precedence and a possible scene with some Prussian royal princess.

After one of these Potsdam visits, the Austrian government appropriated three hundred millions for new Skoda cannon and a great and unexpected increase of the navy was voted. In Austria itself it was seen that the German influence was dragging Austria-Hungary nearer and nearer to war.

Ferdinand disliked the Hungarians and in turn was hated by them. If he had attained the throne of the Empire, as his children could not inherit, he would have endeavoured first to remove that obstacle, but if he had not succeeded he intended, as I have said, either to restore the kingdom of Bohemia and place his son, child of a Bohemian mother, on the newly created throne, or create, possibly from conquered lands, another kingdom over which his heir could reign.

The Magyars, the real Hungarian ruling race, are most skilful politicians. Their elections often are corrupt and all the tricks of the politician are in use in Hungary.

In many families political talent seems hereditary. Tisza, the Premier of Hungary for the period for some time before the war, was the son of Tisza, who was Premier of Hungary about the year 1875. Kossuth, son of the great Kossuth, has been active in politics. The father of Count Julius Andrassy was Premier about 1866 and favoured Germany, a policy which has been inherited by his son. One of the sons-in-law of Count Andrassy's wife, Marquis Pallavicini, came to America to act as best man when my wife's sister married Count Sigray.

Andrassy came to Berlin during the war where I had several long talks with him. The one desire of Hungarians and Austrians alike is for peace, but surrounded by the armies of their German masters, they have lost their independence of action, a bitter blow to the Magyars, who are not fond of the Germans.

Count Stephen Tisza is an obstinate and able man, so many sided that it is related of him that he fought a duel, rode a steeplechase and made a great speech in Parliament, all in one day.