An Observer in the Near East

by William Le Queux

The reason for this has been explained by the fact that certain members of the Austrian Imperial family were financially interested in the works in question. This, however, was not the real reason. There was one far more subtle. The true political reason, indeed, was that the Austrian Government wished to get a seat in the “Autonom-Monopol” administration—the body which controls the loans, and which consists of six members, namely, one French delegate, one German, and four Servians. France and Germany were both friendly, but Austria, had she gained a seat there, could at once have created internal dissension and difficulty.

Nominally, the annual income from this “Monopol” is about thirty million dinars, or francs, of which twenty million go to the creditors, leaving ten million at the free disposal of the Government. Now had Austria obtained a hand in this administration, she would have been able to exercise a prerogative and a right of intervention in many matters affecting the good government of the country—a danger that will at once be apparent.

Austrian intrigue is everywhere apparent, not only in Belgrade, but throughout the whole of Servia. Austria does not wish either a national or a staple Government in Servia, and so, because they could not obtain their ends, and because the present Government voices the national ideas of the whole of the Serb people—who are as a matter of fact spread over Croatia, Slavonia, Bosnia, Herzegovina, Montenegro, and part of Hungary—they have pursued the Customs War, and put a prohibitive tariff upon everything in the endeavour to close entirely the world’s markets to Servia. The latter has of course retaliated by placing a prohibitive tariff upon all goods from those nations who have no treaty—a move which is of course directed against Austria, but by which other Powers must, for the present, suffer.

As regards England, the first commercial treaty made by Servia after the Berlin Treaty was with Great Britain, and it served as the base of all the other treaties. Of this Austria-Hungary was jealous, and from that time until to-day Austria has done everything in her power to discredit and discourage British trade in the Balkans. In fact, so seriously detrimental has been Austria’s influence against British trade that naturally some time must elapse ere the damage done can be repaired.

Meanwhile, a new commercial treaty with England has been arranged, for it was in Servia’s greatest interest that this should be done. Every Servian I spoke to was loud in his praises of England, and of English methods. Servia is very anxious to export her agricultural produce to England, while in Servia—now that Austrian imports have stopped—there are many open markets for English goods.

Austria believed that as all Servian exports were sent into Austria-Hungary, Servia would be obliged in the end to accept their drastic and unfair terms—the purchase of cannon and other restrictions. On the contrary, however, it says much for Servia’s enterprise that, though the Austrian frontier has been closed during 1906, yet Servia has exported all her goods by way of Varna or Braila, or by Salonica, to which port a line of rail runs from Nisch. The producer has felt the Austrian oppression but little, if any at all. In fact, it is the opinion of many statesmen in Servia that it would actually be in the country’s interests if Austria continues her present hostile Customs policy, for it will then compel the Servians to look for markets farther afield, and arouse them to take strong initiatives.

It should be noted, too, that fifteen years ago Austria raised the same trouble with Roumania, and the Roumanians are now happily emancipated from the Austrian market, and are consequently prosperous.

At present, with the Austrian frontier barred for export, Servia must build a railway to the Adriatic. The line from Nisch, viâ Usküb, to Salonica, though it runs through Macedonia, is practically under Austrian control, and goods sent over it from Servia are subjected to high tariff. Therefore there is a project afoot to construct a new line from Kragooyevatz across the Kopaonik Mountains to Prisrend, and thence through Northern Albania down to Skodra and the Adriatic at the port of San Giovanni di Medua. An alternative scheme is to construct the line so that it passes through Montenegro, and joins the line at present being made by an Italian company from Antivari on the coast to Virpasar on the Lake of Scutari.

One or other of these two schemes will certainly be adopted in the near future, and when the line is completed, Servia will at once be entirely independent of Austria, and secure an outlet to the Adriatic. Such a railway will be of great strategic importance, as will be seen from a glance on the map. I have been over parts of the projected route, and certainly it will be a very difficult line to construct, on account of the wall of mountains lying between the Lake of Scutari and the Servian frontier. But its opening will mean civilising the wild tribes of Albania and the further cementing of the Serb nation.

This last point is, indeed, the chief line of the Servian Balkan policy. In my conversations with the Premier, with Dr. Milenko Vesnitch, Minister of Justice, and with the Ministers of Commerce and of Finance, I found them all in accord upon the one great principle of policy, namely, the preservation of the great Serb nation, which consists of over ten million persons, spread through Bosnia, Herzegovina, Slavonia, Kossovo, Montenegro, Servia, Dalmatia, and many parts of Hungary itself. This great population speak the same language and have the same aspirations, namely, the unity of the great nation whose past history is such a splendid one.