No: 89.] No. 34. Mr. Kasson to Mr. Evarts. LEGATION OF THE UNITED STATES, Vienna, June 29, 1878. (Received July 13.) SIR: The various questions pending between Austria and Hungary, which have impeded the conclusion of a new compromise to take the place of that of 1867, which was limited in duration to ten years, have now been adjusted, and the various laws which constitute the new adjustment, binding on the two halves of the empire, received the imperial approval on the 27th instant. The most important of these are: 1. The assumption of the debt due the Austrian Bank of eighty millions of florins (of which I have before written) by the Austrian and Hungarian Governments respectively, in their fixed proportions. 2. The customs-tariff act, which remains in substance in the terms last communicated by this legation to the Department. (So soon as I can procure an authentic printed copy of this act, I will forward it for the use of the Treasury Department at Washington.) 3. The act regulating the quota to be contributed by each portion of the empire to the current expenses of the common government. 4. The national-bank act which changes the name of the existing insti tution from that of the Austrian National Bank to that of Austro-Hungarian, with a bureau and portion of its capital at Buda-Pesth, as well as at Vienna. This re-establishment of a common constitution, obligatory on both Austria and Hungary, has greatly relieved the situation in which the common imperial ministry found itself in presence of the complications of the Oriental question. The government will now feel itself much stronger in the demands it has to make of the congress at Berlin. The evidence of this feeling is already apparent in the increased vigor of its military movements on the frontier and in the firmness with which its demands are expressed. I will write more fully of this adjustment so soon as I shall have re-covered from an illness which now confines me to my chamber. I have, &c., No. 35. JOHN A. KASSON. No. 90.] Mr. Kasson to Mr. Evarts. LEGATION OF THE UNITED STATES, Vienna, June 30, 1878. (Received July 17.) SIR: I have heretofore had occasion to speak of the cloudy definition given to the public of the views and purposes of this government in respect to the Oriental question. The more satisfactory condition of Austro-Hungarian internal affairs, and the necessity of greater precision in the presence of the Berlin congress, have naturally led to a clearer understanding of the views and claims of the cabinet at Vienna. Owing to the secrecy imposed on the members of the congress, which has been in the main well observed until results were attained, the fourscore of journalistic correspondents at Berlin have been able to do little else than confuse the public judgment by their unauthorized reports. What I have now to communicate is founded, therefore, upon actual events here, and a careful comparison of the announcements and arguments presented by the journals of this empire. It appears, then, that there are two controlling considerations which shape Austro-Hungarian policy: I. HOSTILITY TO SCLAVIC INFLUENCE. There exists a very strong hostility to any new concentration of the power and influence of the Sclavic race outside of and near to her own frontiers. She fears that any new centers of such influence would become the seat of agitation for new combinations and further unity of the people of that race, which would in turn increase the existing dissatisfaction of that large portion of the race already embraced within this empire. The ruling Magyars of Hungary are especially sensitive on this point. Hence one fixed object of Austro-Hungarian policy at the congress is the restriction as far as possible of this generic element in the new semi-independent principality of Bulgaria. This naturally led to her alliance with England in all points which would strengthen the power of Turkey on the line of the Balkans, between Bulgaria and the new Roumelia, and for the maintenance of Turkish dominion over the latter province. The same sentiment has fixed her in a position of hostility to the northward extension of Montenegro and the southward extension of Servia. She will insist on securing as wide a space as possible between the boundaries of those two Sclavic principalities. Whether in this she will have the assistance of England remains to be seen. There exists also her interest in the disposition to be made of the same race-elements existing in Bosnia and Herzegovina, which are conterminous with her own southern frontier. The presence there of a considerable Mohammedan population has led to chronic civil disorders, until they can hardly be said to be governed at all; and this empire has suffered consequently from the invasion of great numbers of pauper fugitives seeking refuge within her borders. A look at the map will also show that these provinces are geographically a back country whose outlet should be through the Austrian Adriatic provinces. I have heretofore written to you that Austria was preparing for a military occupation of these provinces. This occupation appears now to have been postponed until the sanction of the Berlin congress shall have been sought and, if possible, obtained. The indications now are that she will receive this commission from European authority to restore order and security there, and that Turkey will not resist by force of arms. What ultimate result of future dominion will follow this occupation remains to be seen. But it will give Austria a new military position of great importance in the future supervision of Servia. It is in this manner, according to the best light accessible to me, that this government proposes to quiet her fears of the increase of the power and influence of the Sclavic race, resulting from the emancipation of Turkish provinces in Europe. If it shall be only the beginning of the extension of this empire eastward and southward, it opens an interesting field for historical speculation. Let some great Hungarian statesman secure hereafter the control of the government, abandon the German alliance, ignore the German element, push his armies on the Egean, anticipate Russia at Constantinople, resting the right of his empire on the Adriatic, his left on the Bosphorus and gean, with Buda-Pesth for his political and Constantinople for his commercial capital! What then? II. RAILWAY AND COMMERCIAL CONTROL IN THE EAST. The second controlling object of Austro-Hungarian policy appears to be the attainment of certain lines of commercial communication across the Turkish provinces in Europe, by the aid of which she may find new markets and outlets for her products and manufactures. Beside the countries of Roumania and Servia, with which she is already in communication both by the Danube and by railway, there are large interior districts into which run the railways from Constantinople and from Salonica. Turkey seems to have desired not to extend these roads so far as to connect them with the European system, or even to make them easily accessible to the rest of Europe. The old Roman Empire left everywhere there its monuments as a road-making power. The Ottoman Empire on the contrary has usually left its monuments as a road-obstructing power. Jealousy of foreign approach is a universal Asiatic characteristic. Austria wishes to break this system as it exists in the Turkish provinces, and to connect these isolated railways with her own system. The one from Constantinople points to Belgrade and Buda-Pesth; that from Salonica, through Bosnia toward the Ægean and Vienna. The latter railway will run through the strip of territory lying between Servia and Montenegro. For this reason, also, as well as for that heretofore given, Austria desires a wide street between those two principalities for the security of this communication. While she hopes to control the upper portion of this one line by her military occupation of Bosnia, she hopes by special arrangements with the other principalities to provide for the completion and possible extension of the railway system. Although the immediate object of Austria in this respect appears to be the establishment of increased commercial facilities for her people, one easily foresees how largely the accomplishment of this object will augment her political influence and power over the Oriental provinces, and will facilitate any projects of future territorial extension which may now exist in petto. Austria, like England, appears at the congress to be controlled by her special material interests. If any high sentiment affects any power now sitting at the congressional table, it would seem to be Russia alone, who has sacrificed both blood and treasure for the emancipation of the Sclavic race beyond her own borders. The cry of Roumania against the proposed mutilation of her territory finds the ear of Austria as deaf as the other powers have shown themselves to be. Whether the congress will even establish a rule for the liberty and equality of religious worship and of race in the provinces of which they assume the reorganization, is still a matter of doubt. The reports are conflicting, and we can only await the official declaration of the result. I have, &c., No. 36. JOHN A. KASSON. No. 96.] Mr. Kasson to Mr. Evarts. LEGATION OF THE UNITED STATES, Vienna, July 13, 1878. (Received August 22.) SIR: The Shah of Persia, returning from his visit to Paris, has sojourned some days at Vienna as the guest of the Emperor. Through the Austrian functionaries in intercourse with him I learn that both he and his suite give evidence of great improvement since their former visit to Europe in 1873. His manners were formerly impetuous and imperious, indicating a full appreciation of his Persian title as ruler of rulers and central sun in the political firmaments. The air of contempt for all coming in contact with him has greatly passed away under the softening influences of his contact with western civilization. The great powers of the Christian world, and especially the gracious manner of the Austrian Emperor, have shown him that the authority over many more millions of people than he or his ancestors ever ruled may be exercised without the outward show of a despotic will. The Persians have also lost much of their disregard for cleanliness, and manifest more conformity to the rules of a regulated household. They still refuse the use of beds, sleeping on carpets, but avoid the domestic disorder which characterized their former visit. They travel with heavy boxes of gold for their expenses, declining the convenient usage of bills of exchange. The Shah's suite consists of twenty persons besides six inferior servants. Of these twenty, sixteen were designated for invitation to the first dinner given to the Shah by the Emperor. From this list the Shah scratched the names of four, leaving only twelve of his suite as of sufficient dignity to sit at the table with him. His grand chamberlain took post behind his chair, where he remained throughout the dinner. Only one or two of the company have the pure Persian race-type, the others indicating more or less mixture of Turcoman and alien blood. One, the cousin of the Shah, and the chief of an ancient distinct tribe, and who acts, I think, as treasurer, reproduces much of the old Assyrian type of face and head as recognized on ancient coins and images. If the United States desired a commercial treaty with the Shah, it is very probable a favorable one could now be obtained, which might be of especial advantage to our cotton manufacturers and to some other branches of trade. If, as is reported in the English journals, they [the U. S.] are already introducing their cotton fabrics into England, they ought to be able, on equal terins, to supersede the English manufacture in Persia. In the absence of diplomatic or consular representation of our country there, I can give only partial statistics relating to the probable consumption of these or other American articles in that part of Asia. The whole external trade of Persia can only be roughly estimated. It is considered to amount annually to about $18,000,000 to $20,000,000, of which some $12,000,000 are imports against some $7,000,000 exports. Its amount is seriously affected by the occasional failure of the silk product, which is of the greatest importance in Persia. Cotton goods and cotton yarns form a large item of the imports, to which are added cloths and manufactured silks. Doubtless American fire-arms and other specialties would be profitably introduced by special representations of the trade. Tabreez is the principal center of Persian trade, and attracts merchants from Samarcand, Cabul, Bokhara, and Beloochistan. I gather from English statistics that in the three years 1873-1875 the average value of English cotton goods annually imported for the Tabreez market was about $4,000,000. The usual commercial route to Tabreez is via Constantinople to Trebizond and thence by caravan to destination. England, France, and Russia have missions at the Persian capital. To these Austria is about to add a fourth. The imperial government has just designated Count Zaluski as their envoy, a gentleman who speaks Arabic and Turkish and is partially acquainted with the Persian language. By invitation of the Shah he will here join the royal party, having excellent opportunity on the journey to secure a favorable influence with His Majesty and with the principal chiefs of administration who are with him. They travel from Vienna in a special train as far as the Volga; thence in a government steamer to Astrakhan, and thence in a Russian ship of war to the Persian port on the Caspian. I note these observations upon the Shah's visit as one of the indications of the surely-advancing influence of Western arts and ideas upon the almost stagnant condition of Asiatic society. I have, &c., No. 37. JOHN A. KASSON. 97. Mr. Kasson to Mr. Evarts. LEGATION OF THE UNITED STATES, Vienna, July 13, 1878. [Received July 30.] SIR: I inclose herewith a copy of the original text, with a translation, of the formal notification by the imperial government of the acceptance by Austria and Hungary of the invitation extended to them on the part of the United States to participate in the international conference on the relations of gold and silver as money; an invitation communicated to this government by me on the 8th of April last. This reply was to-day delivered to this legation. There appears no objection to Paris as the place, or the 10th of August as the time, for the meeting of the conference. I have, &c., JOHN A. KASSON. [Inclosure to dispatch No. 97.-Translation.] Count Orezy to Mr. Kasson. In his esteemed note of the 8th April last, the envoy extraordinary and minister plenipotentiary of the United States of America, Mr. John A. Kasson, was pleased to communicate to the ministry for foreign affairs the law passed by the Congress of the United States of America relative to the coinage and circulation of silver money. and in the name of his government to address to us an invitation to a conference upon an international introduction of a double currency. The envoy was similarly pleased, in his subsequent notes of the 2d and 4th instant, to propose Paris as the place, and the 10th of August next as the time, for the assembly of the conference in question. Upon this conference the ministry for foreign affairs has not omitted to place itself in communication with the imperial and royal Austrian and the royal Hungarian ministers of finance, and it affords pleasure to the undersigned this day, in accordance with his previous oral declarations, to formally advise the envoy that the government of His Imperial and Royal Apostolic Majesty accept with thanks the invitation received; and although it is not unaware of the difficulties of an accord upon the subject, still it is willingly disposed to enter upon a discussion of the proposed question. It is not less agreed as to the time and place of the proposed conference, and will adopt such arrangements in order that its delegates, whose appointment will soon take place, may be in Paris on the designated day. In regard to the actual meeting of the conference, and not less in regard to the programme of the conference, the government of His Imperial and Royal Majesty believes that it is entitled to expect a detailed specification from the American envoy. The undersigned avails himself of the occasion to renew to the envoy the assurance of his distinguished consideration. Vienna, 12th July, 1878. For the minister for foreign affairs. OREZY. |