[Footnote 1: This declaration was made the basis of the Austrian Note to Serbia in July 1914.]
Sec.5. The Renaissance of Serbia.—From this diplomatic defeat dates the renaissance of Serbia. It restored her to a sense of hard realities, and taught her to substitute hard work for loud talk. So rough a challenge put the national spirit on its mettle. The brief period between 1908 and 1912 worked a real transformation in Belgrade, which could not fail to impress those who took the trouble to look beneath the surface. Nowhere was the change more marked than in the Serbian army, from which the regicide elements had been slowly but steadily eliminated. The two Balkan wars of 1912-1913 revealed Serbia to the outside world as a military power, notable alike for the elan of its infantry, the high efficiency of its artillery, the close camaraderie of officers and men. The first use made of her victories over the Turks was the occupation of northern Albania, her only possible outlet to the sea so long as Dalmatia remains in Austrian hands. Austria-Hungary, who had only remained inactive because she had taken a Turkish victory for granted, now intervened, and by the creation of an artificial Albanian State vetoed Serbia’s expansion to the Adriatic. The Austrian Foreign Minister, Count Berchtold, short-sighted and indolent then as now, failed to realise that the North Albanian harbours, for obvious reasons of physical geography, could never be converted into naval bases, save at a prohibitive cost, and that their possession by Serbia, so far from being a menace to Austria, would involve the policing of a mountainous tract of country, inhabited by a turbulent and hostile population. It ought to have been obvious to him that the moment had arrived for tempting the Serbs into the Austrian sphere of influence by the bait of generous commercial concessions through Bosnia and Dalmatia. Several