On January 17, 1916, it was announced in the Austrian Parliament by Count Tisza that the Montenegrin Government had sued for terms of peace. Montenegro's official version of this sudden surrender was given in a note by the Montenegrin Consul General in Paris:

"The newspapers announce that unhappy Montenegro has had to submit to the inevitable after having struggled heroically under particularly disadvantageous conditions against an enemy much superior in number and formidably armed. It may be considered as certain that if the king and the Government have yielded it is because the army had expended the last of its munitions.

"Even flight was impossible. The enemy was on the frontiers; there was no escape by the sea; inveterate hostility was to be encountered in Albania. If the Serbian army was able to escape from Serbia, the weak contingents of Montenegro, exhausted by the superhuman efforts of their long and desperate, but effective resistance, and by privations of all kinds, were not able to seek refuge on friendly territory. It is possible to discuss ad infinitum the conditions of the suspension of hostilities, the details of which, it is to be observed, come from enemy sources; it is even possible to heap insults on the unfortunate conquered...."

The question immediately raised in the British and French newspapers was: who opened negotiations with the enemy—the king or his minister? Mïuskovitch, who was frankly in favor of the Austrians, had become premier at a critical moment in Montenegro's fate and negotiations were undoubtedly proceeding while the fighting on Mount Lovcen was still in progress. It was said that this was well known to the troops in the field, and in consequence they had not made so determined a resistance as they might otherwise have done.

Meanwhile throughout Germany and Austria celebrations of the great victory were going on and a Vienna paper published what purported to be the terms that were to be granted the conquered Montenegrins, harsh in the extreme. It was even indicated that the Montenegrin soldiers must all serve with the Austrians on the Italian front. And next there was a strange silence, a period during which no mention at all was made of Montenegrins, as to whether they had accepted the terms or not.

Meanwhile among the Allies, who had not expected that Montenegro would give in so quickly, there was much criticism of the little state's surrender. It was suggested that it had been inspired for dynastic reasons, by a pro-Austrian section of the court. It was even asserted that King Nicholas had secretly come to terms with Austria before the fall of Mount Lovcen and that the resistance put up by the Montenegrins was unreal and of a purely theatrical character. It was recalled that the wife of the Montenegrin Crown Prince was a German princess. It was said that a compact was in existence, and had been in existence for several months, by which Montenegro agreed to hand Mount Lovcen over to the Austrians in return for Scutari.

These speculations were finally terminated by an official statement issued by Sir J. Roper Parkington, the Consul General for Montenegro in London, in which he said that the king and the Government of Montenegro had peremptorily refused the conditions of peace offered them by Austria and that Montenegro would continue the struggle to the bitter end. The announcement made by the Austrian Government that the Montenegrins had already laid down their arms seemed, therefore, to have been without foundation. This communiqué also stated that all the reports issued by the Austrians had been in large part untrue.

"King Nicholas," continued this official announcement, "remains with his two sons at the head of his troops, to organize a final defense, and to take part, in case of necessity, in the retreat of his brave army. His majesty expresses the hope that the Allies will eventually afford him effectual assistance for the retreat, as they have already done for the Serbian army."

In the fourth week in January, 1916, the Montenegrin premier, M. Mïuskovitch, issued a note admitting there had been negotiations with Austria, but asserted that they had been merely a pretext to gain time, to insure the safe retreat of the army toward Podgoritza and Scutari, as well as to give opportunity to the Serbian troops to leave Podgoritza and Scutari for Alessio and Durazzo in Albania.

On January 23, 1916, old King Nicholas appeared in Rome, where he was met by his son-in-law, the King of Italy, and from thence he went on to Lyons, in France, where his queen had preceded him and where, by the courtesy of the French Government, the capital of Montenegro was temporarily established.