WAR CLOUD IN EUROPE

Dominion, Volume 7, Issue 2214, 29 July 1914, Page 7

WAR CLOUD IN EUROPE

BRIGHTER PROSPECTS. GRIM MENACE' OF TITANIC CONFLICT. /'; IF EUSSIA'MOVESe, . BRITAIN STRIVING FOR PEACE.

By Telegraph-Prces Association-Copyright London, July 27. In the. House of Commons, Sir Ed'ward Grey (Secretary of State .for Foreign Affairs), in reply to Mr. Bonar Law (Leader of the Opposition), said if the dispute were conhned to Austria and Servia, Britain-would not. interfere, but the moment another Power was jii--volved the position would become critical ; the' question would be ono qf the peace of Europe. It appeared to him that Britain, Germany, France, and Italy should work together at St. ; Petersburg and Vienna simultaneously to secure a suspension ;of operations, pending discussion. The co-oporation of the. four Powers mentioned was essential. If the efforts failed, the failure would lead to the greatest catastrophe wliich could befall the European Concert, and the consequences would be incalculable. . . ' Sir Edward Grey added that'he had asked France, Germany; and Italy if they weio willing that their Ambassadors should meet him in conference in London. -..-> v . . : London, July 27. Britain has suggested that Germany, Franco,. Britain, and Italy should mediate in tho dispute betwoen Austria and Servia. .'•■:.-

REMARKABLE OPTIMISM

NO EUROPEAN WAR WITH ENGLAND LEFT OUT • GERMAN EFFORTS WORKING.FOR PEACE "Times" a-wi Sydney 'Sun" Sorvlces. :'.' (Rec. July 28, 5.35 p.m.) . '" London, July 2". The situation :s regarded with remarkable optimism, for there is reason to suppose that . England has'made it plain that there will bo no European war with England left out, while Germany admits sho would givo as good advico to Vienna as France might give ito'St.' Petersburg. 1 ■ Germany' is certainly- working forpeace. ' 1 '. ."; London, July 27i , ■ 'There is .'.a more r hopeful feeling in' ' Paris _ and St. Petersburg, following a long, interview between . M. Sazan6fE (Russian Foreign Minister) and the Austrian Ambassador. ':■• (Rec. July 28, 11.30 p.m.) London, July 28. '.Unofficial opinion in the European capitals regarding tho crisis is more .hopeful except in Vienna)' where Servian news is belated, and is coming via Rumania. Diplomats do not attach any importance to tho encounters-on the, Danube, and recaN similar encounters during the Bosnia crisis. It- is understood that France has accepted Sir Edward Grey's proposals for mediation. '■' ■ , ■'.'■' telegram received :in Paris from Vienna states a very important 'preparation was completing, with a view to military-action, this morning. The .'Berlin "Lokal Anzieger" states' that an Austrian army has invaded Servia at Mitrovitja, and.that.the Servians retreated. Both alarmist reports are unconfirmed. THE CASE FOR AUSTRIA ; SBRVIA'S ANTICAPATIONS. ; ' (Rec. July 29, 1.5 a.m.) '■'..'-. Vienna, July 28. .The Monday . evening newspapers state that the Servian reply shows "that the Government is only seeking evasions. It is impossible for Austria to cease her action if demands are not unconditionally accepted.. /The mobilisation cost has been paid, and the Government must now make quite other demands; . ■ Telegrams from Nish,_ the new Servian capital, state that it is generally considered that the situation is less critical than on Sunday. If Austria had been assured that she,was being backed by Germany, Austria. would already have poured her troops across the Danube. Servia expects that Austria, in order to presorve European peace, will accept arbitration by a conference of Ambassadors. . Mobilisation of the army has beenpractically completed. Two battalions have been ordered to retire_ from Belgrade immediately the Austrians arrive. SHOTS EXCHANGED BRIDGE BLOWN UP. London, July 27. Renters Servian Agency states that troops on a steamer on Danube exchanged, shots with Austrian troops, and that an important engagement ensued. Berlin,; July 27.. : Telegrams,from-Vienna,state that the Servians have blown up r a bridge over tho 'Danube and opened fire near Temiskubin. '

AUSTRIAN ' ASSURANCES, \ —

"Times" and' Sydney "Sun." Services, (Rec. July.2B, 5.35 p.m.) St. Petersburg, July 27. - Tile Austrian ;\mbassndor lias assured .M. Sazanoft', Minister for Foreign Affairs, that tho rupture, of diplomatic re-' lation.s did not imply the outbreak.of •hostilities. ' '.Ho declared that Germany did not desire war mi any account, and parti-, ruliirly with Russia. SERVIA'S REPLY I INTENDED TO CREATE A FALSE IMPRESSION, ' Vienna, July 27. A semi-official communique states that the Servian reply was intended to create j h l alae impression, While apparently

complying w-'th' Austria's demands, it contains far-reaching reservations, making the concessions insignificant. BRITAIN'S VIEW OF THE MATTER. AN. ACCEPTABLE SETTLEMENT POSSIBLE. (Rec. July 29, 0.10 a.m.) London, July 28. The Marquis of Crewe (Secretary of State for India), speaking in the House of Lords, said the urgency of the situation 'nccessitade Sir Edward Grey taking the unusual course of making a proposition without finding out beforehand whether it would be acceptable to the different Powers. Britain's view is that Servians reply seemed to'afford a basis oh which a friendly and disinterested group of Powers, ought to bo able to arrange a generally /acceptable settlement. ■ . ATTITUDE OF GERMANY. Berlin, July 28. It \is understood l in diplomatic circles that Sir Edward Grey does not desire to intervene in tho Austro-Serb conflict,' which is no affair of Britain's hut desires to prevent complications, which are likely to cause the conflict to spread. Replying to representations of the Triple Entente, Germany has hitherto replied, that she had no objection to other Powers 'attempting to secure concessions, but as Austria was an ally, Germany cannot interfere in Austria's freedom of action. CALMER FEELING IN RUSSIA. St. • Petersburg, July ,29. The situation is calmer., iu_ expectations that the exercise of British and German influence will be successful, and prices on .the Bourse rose.• ; RADICALLY FAVOURABLE EFFECT. Rome, July 2S. It is believed Sir Edward Grey's proposals have had a radically favourable effect in modifying the general situation. , «'■ , ; , ' ■ *~ [ ~' •;.'-.; ;■ PEACE OR WAR? I ; RESTS WITH GERMANY. / (Rec. July 29, 1.5 a.m.) ''"' Paris, July 28. Tho more hopeful feeling is not en.dorsed in official circles here. It is pointed out the comhiunique issued by Vienna shows that Austria is disinclined to meet Servia with concessions. • Tho newspapers say the question of peace or war rests with 'Germany; if she desires.peace she can'easily urge Austria to* declare herself satisfied since Servia has given way. ■ ."' j PATRIOTIC DEMONSTRATIONS I -KAISER TUMULTOUSLY WEL-. ' ,". /CpMED. BIG, CROWD CHEERS ENGLAND. ' Berlin, July 27. Tho demonstrations .were renewed on the Untor den Linden. A procession passed tho British: Embassy amid cries of "Hooh, England I'V •"'.'"' The Kaiser was*': tumultously welcomed at Kiel. He has proceeded to .Berlin. ■.'■■■ v - The High Sea Fleet has stopped its North Sea exercises and returned to Kiel and Wilhelmshaven. . St. Petersburg, July 27. St. Petersburg is animated by a general patriotic outburst.' '• ■ All the strikers have resumed work. DISORDERLY SCENES IN THE STREETS OF PARISH-. .. " (Rec. July 29, 1.5 a.m.) . . ■'■ ' " Paris,. July '28. Disorderly scenes occurred. dh tho Boulevards.. Socialists and Anarchists organised a demonstration against the war, and. paraded, shouting: "Down with war I Down'with, the' army I" , Patriots - replied with a counterdemonstration. The police and mounted Republican Guards frequently charged the crowd, j knocking down many. 1 TURKISH PRESS VIEWS REOPEN THE BALKAN QUESTION. "Times" and Sydney "Sim! 1 Sonrlceo. (Rec. July 28, 5.35 p.m.) ■ - Constantinople, July 27. The Turkish Press urges Bulgaria to attack Rumania the moment hostilities begin, while Turkey compels Greece.to reviso the treaty.

BOURSES AND MARKETS WEAK

CONSOLS TOUCHED £71 AND. RALLIED. . RUN ON SAVINGS BANKS IN GERMANY. London, July 27. Tlio Stock Exchange is demoralised. Imperial Consols touched' £71—-a record —qn account of sensational Continental telegrams, but recovered, and closed at £72 10s. Colonial Government stocks arc nominally unchanged, but business is almost at a standstill.London, July 27., ; The Stock Exchange opened! very ■weak, Consols being, at £72 10s.' Berlin, July 27. The run on some of the savings banks quickly subsided. One of the'. great banks declined, to pay in gokt ; arid suggested to its customers, to change notes, tit the Reichsbank. ; .'■ ■ SHARP FALL IN CANADIAN ' PACIFIC STOCKS. . (Roc. July aS. 11.30 p.m.) ' London, July 2S. Genuine safes of stoeh from the. Continent lvero tilts main cause of tho StockExchange weakness. London dealers were unwilling to lake unduo risks. Canadian'l'acifio,fell to 176, and declined twsnty«two points jinoa tho uiskiflg-ui),

AUSTRALIAN MARKETS RECOVERING. (Rec. July 28, 9.20 p.m.) Sydney, July 28. Tho stock markets have recovered their firmness. Wheat has an' advancing tendency, and -Is. Id. a bushel is being asked, with ■little inclination to sell.' j BRITISH NAVY MOBILISING FIRST FLEET TO SAIL FOR THE '■■•" NORTH SEA. (Rec. July 29,'1.25 a.m.) , London, July 28. Tho first fleet is coaling at Portland, and it is believed. it proceeds to the North Sea.Tho second licet could ho ready in twenty-four hours as tho so-called balance of the crews is already aboard. Patrol and flotillas aro being mobilised. Tho third fleet could be ready in fortyeight hours, as the crews know tlipir way about the vessels as they have just had ten days' training. MEANS AN ARMAGEDDON IF THE MIGHT! RUSSIAN EMPIRE BEGINS TO MOVE. ("Timss" and Sydney "Sun" Services) London, July 27. The military correspondent" of "Tho Times'' says:—"Servia albno has' not thej faintest hope of siiccess. She requires time to organise her new territories, renew her war material, and lick her wounds. But conditions will bo aj- ! tere'd if she obtains useful allies, or if tho mighty Russian Empire begfns to. move. With the existing group system of Europe, this means an Armageddon." . ■ OFFER OF SERVICES. ' (Rec. July 29, 1.35 a.m.) Melbourne, July 28. ' Austrian residents aro calling on the Consul and offering their services in the event of hostilities. . NO OFFICIAL NEWS In the House of Representatives yesterday afternoon, the Prime Minister road the following telegram which had been received by His Excellency tho Governor_ from the British authorities: "His Majesty's Government has nov received any intimation of the outbreak of war." It was hoped, added Mr. Massey, that even now war might be averted. Tho announcement - was received with "Hear, hears" from both sides of the House. THE WAR CLOUD. MR. MASSEY ON THE SITUATION. Speaking at the A. and P. Societies'' Conference yesterday, the Prime Minister (the Hon. W. F: Massey)'said that tho only serious trouble, ahead was indicated by the war-cloud which hung low over the other hemisphere. That cloud'might buret at any moment, though he sincerely, trusted; that it would not. If it did burst, no man could tell where the trouble would stop, nor whether the British' Empire, would become involved';' If the gi;eat Empire to which we belonged did become involvod in the matter, he was sure-that all parts of it would stand together as* they had done on other occasions. ,(Anplause.V ■ ■ ; THE MONEY MARKET AND THE WAR ■ Speaking'to'a : Canterbury railway, deputation yesterday, the Hon. W: Fraser said that the expenditure upon works, would, of course, depend upon the amount of. money.available, and if there- was to be a big war in Europo possibly the whole of the loan money would be shut up. against us and they would Hot 'know where they were. It Was therefore impossible for him to make a definite promise now. He sincerely hoped'there would not bo war. • If the position was favourable, he hoped to got as much for railway works, ai more, than he got last year. . , TELEGRAPH DISPATCHES - Berne, advises the Telegraph Office hero;—" Private telegrams to and in transit through Austria must b« written all in plain laiiguago, viz., ,iri language exclusively' German and French. Coast stations at Trieste, Sedenico, and Castlenuovo, and" the semaphore offices at Lagosta, Faro, Lissaj Porer, PuntaDostro, Salvore, and Vnetak do not, until further notice,' send private , telegrams on tho line's in English or Italian. Private telegrams for Hungary passing through Austria may be written in Hungarian." CONDITIONS IN AUSTRIA. .';,'' DEFICIENT WHEAT CROP. / TRADE WITH SERVIA. • The depression of the Vienna .Bourse, which lias lasted 50 lone, is giving way to ■the total inactivity of the summer months earlier in the year than usual, because, ■the harvest prospects are very poor indeed; The situation' in Hungary seams 'desperate when one considers that there are only three weeks to harvesting 'time, :and the wheat'in tho most fertile districts is not much over half its usual height and very spare. In Budapest corn prices are'steadily rising, and will continne'to do so so long: as it is certain corn duties will not be reduced in the commercial treaties with corn-growing countries about to bo renewed. There can-be no doubt that large anantities of corn for liomo consumption will .have to be imported this year. The question is being discussed' whether the Government is justified in maintaining the exorbitant duties, when the entire population suffers so severely from heavT taxation and the high cost "of living. The partial prohibition of the import of cattle and the high duties only favour a. very small class of wealthy individuals, who are growing richer and more powerful year bv year. Kelety. in his work on the nourishment of the Hungarian nation, shows that there are 400,000 familie* in Hungary who own only one toch (1.6 acre), which is,.of course, insufficient for their wants. At the same time there are; only 1915 persons in Huncarywhoso property exceeds 1000 toch. Those ]f!45 people own nne-thiird;of'all Hungary. They alone, profit by the exorbitant duties which raise the nrice of bread and meat to figures which make, it impossible for poor parents to brine up their children on, sufficient food; In Galicia and Bohemia—where 10 per cent, of all tho land is entailed—the state of things is very much tho same. Hungary has raised a demand for temporary suspension of the corn duties; the Chamber of Commerce in Budapest has done so in the most- impressive manner. There is, however, very little hope that the Governments will dare to oppose the powerful Agrarians, wlio protest vehemently against such a measure, even for one year. Tho duties on cattle and pigs are so high that Servia finds it impossible to export its chief product to her neighbours, rind naturally nursss its political grievances against Austria-Hungary all the more for this reason. Some hopes of bettor relations ore entertained, since a short time ago the Emperor gravted a pardon to a number of Servians sentenced to long terms of imprisonment for spying In Bosnia, and King Peter of Servia caused several Austrian* nml Hungarians accused of spying in Sevvin to be released. These measures should prove useful.from more than one point .of view. Economic :.and'financial hostility between the nextdoor neighbours has proved fatal long enough. The imports from and the exports l:o fsfi'via. from Austria-Hungary before the wars amounted to exactly 48 million dinars each way, and gave ah impetus to many brandies of Austrian industry. ■ '' .■ _^