AUSTRO-GERMANY.

Taranaki Daily News, 21 May 1917, Page 5

AUSTRO-GERMANY.

THE TRADE WAR. +i GERMANY VERY APPREHENSIVE, FEARS THE ANGLO-SAXON UNION. A. and N.Z. Cable Assoc, and Reuter. Received May 19, 6.5 p.m. London, May 18. The big industrial paper, the Rheinisch Westfaclische Zeitung, publishes an article showing tiie further spread of the scare regarding after the war trade, which was started in the German banking press, including the Berliner Tageblatt, Lokal Anzeiger, and the Frankfurter Zeitung. It seems the deliberate intention of the German Government to prepare the German nation for the surrender of all political claims if only peace is obtainable on pre-war trade conditions. The article is especially apprehensive regarding the effects of the British Imperial Conference, which it dreads far more than ti Paris Conference, and says the establishment of an Imperial Customs Union must be a matter of extreme gravity for Germany, as it would by its weight draw a number of the smaller States into its orhit. This would he intensified a thousandfold if I America joins with a view of defeating German supremacy in trade and establishing an Anglo-Saxon world domination The Westfaclische article concludes; ''We have shortly to face the most disagreeable of facts. We can only gradually repair the pre-war position in the world's markets, but the conditions of peace offers our first opportunity. Unless, however, we succeed in extorting from England an absolutely unrestricted most favored nation treatment throughout the British Empire, we can see our hands forcibly tied in other directions by tnose who take their political and commercial cue from her. Our foreign trade will inevitably lag 'behind that of the Powers who are now preparing by drawing closer the bonds uniting them to conquer' us in the coming trade war.

FALKENHAYN'S BOAST. NO ENEMY WILL SET FOOT ON GERMAN SOIL. Received May 20, 5.5 p.m. Amsterdam, May 19. General von Falkenhayn, interviewed by journalists, said that not only were lie people at home raving about peace, but the soldiers at the front were equally desirous. It would, however, come only when a happy future was assured to Germany. No enemy would ever set foot on German soil again. AUSTRIA'S PLIGHT. PEOPLE FED ON LIES. New York, May 18. Mr. Penfield, the American Ambassador, who has returned from Vienna, interviewed by the New York Times, said that the distress in Austria ivas terrible, but they must not assume that the country was at the end of its resources. The masses knew nothing of the events in the outer world and were fed on newspaper lies about the strength of the Central Powers, while the Allies were described as on the verge of collapse. He was surprised that Switzerland, although not participating in the war, has spent a billion francs (£40,000,000) on army mobilisation. EFFECT OF GERMAN LOSSES. A SWEDISH RUMOR. London, May 18. Advices from Sweden state that the Anglo-French offensive has provoked deep emotion :n Germany owing to the heavy losses, and that a shatp disagreement over the conduct of the operatiorft has even arisen between the Kaiser and General von Hindenburg, . AN OFFICIAL REPORT. Received May I*, 5.5 p.m. London, May 10. A German official message states: We repulsed, after hand-to-hand righting at midnight, an English attack on the Gavrelie-Fresnes road. We evacuated Bullecourt ruins undisturbed, the enemy establishing themselves there. Twentyfour hours later we repulsed French attacks on Brave, Craonelle, and Craonne, northward of" Sapigneul. We stormed a trenoh eastward of La Royere farm. After six days' artillerying, attacks on both sides of Makovo failed. SOCIALISTS OPPOSE BUDGET. Amsterdam, May 18, The Socialist party in the Reichstag explain their recent vote against the Budget because two-thirds of the burden fell on the lower classes while the propertied classes were not called upon to make much sacrifice. ROBBERS DISAGREE OVER SPOIL. New York, May IS. The New York Times Hague correspondent reports that the Die Post states that there are revelations of Germany's intensions to divide Alsace and Lorraine between Bavaria and Prussia. The plan represents the demands of the Central Party. The correspondent learns thfc there will be furious jealousy in Saxony and other States which have not received a bribe. Meanwhile Austria is sulking and may be offered the Polish throne for the Archduke Karl Stephen. KAISER'S ABDICATION DISCUSSED. ■London, May 18. Lord Esher states that he has seen a letter written from Berlin by an officer stating that the Kaiser's abdication was mentioned at the recent meeting of Emperors and the reconstruction of the Empire openly discussed in Government circles as an alternative to the erection of <t republic. The writer added that if the Kaiser s successor was elected the people of Germany, and even the people of Prussia, wouid not Choose the Crown Prince.