(B)—CLAIMS OF NATIONALITY

3.—The ideal solution for Poland, in a political sense, would be independence. But could a land-locked State, between three great military empires, ever be secure? The Poles, themselves, are not averse to the idea of their re-union as a State within the Austrian Empire. If they had the same status as Hungary, they would be internally independent. But if Europe consented to allow this accession of territory to Austria, conditions might be laid down. It might be stipulated that a like status should be given to Bohemia, and to the Serbo-Croats of Croatia, Bosnia and Dalmatia. Thus Austria would become a quintuple Federal Empire (Austria, Hungary, Bohemia, Poland, Jugoslavia), and one of the main problems of the war, the liberation of the Western Slavs, would be satisfactorily solved.

In return for this extension of territory Austria might be required to cede the Eastern (Ruthenian) part of Galicia to Russia, and the Trentino to Italy.

4.—The chief difficulty lies in Alsace-Lorraine. Let us make the bold claim that it must be restored to France (or such parts of it as desire this change). What can we offer as a quid pro quo? The following economic concessions suggest themselves (5, 6, and 7).

(C)—ECONOMIC CLAIMS

5.—That Germany be allowed to complete that closer economic union with her Allies, and especially Austria, which seems to be her chief objective. We cannot prevent the creation of “Mid-Europe” as an economic unity, but we might reply to it by a boycott. An amiable regulation of tariff questions is a necessity for peace.

6.—We might further agree not to oppose such economic expansion (railway and irrigation schemes) in Turkey as Germany can arrange. Turkey would become a German economic sphere, but there must be guarantees for the fair treatment of the trade in goods of other Powers.

7.—A general measure by which all Powers renounced differential tariffs in their tropical colonies would ease the struggle for territory. France would be reluctant to agree to this, but the condition is that she secures Alsace.

(D)—OTHER ISSUES