The result of the interview was the appointment of the Marghiloman Ministry and the continuation of the negotiations.

Before Marghiloman consented to form a Cabinet, he approached me to learn the exact terms.

He declared himself to be in agreement with the first and hardest of the conditions—­the cession of the Dobrudsha, because he was quicker than the King in seeing that in consequence of our binding obligation to Bulgaria in this connection, it could not be otherwise.  As to our territorial demands, I told Marghiloman that I laid chief stress on entering into friendly and lasting relations with Roumania after peace was concluded, and, therefore, desired to reduce the demands in such measure as Roumania, on her part, would consider bearable.  On the other hand, he, Marghiloman, must understand that I was bound to consider the Hungarian aspirations to a certain degree, Marghiloman, who was an old and tried parliamentarian, fully saw in what a constrained position I was placed.  We finally agreed that the cession of the populated districts and towns like Turn-Saverin and Okna should not take place, and, altogether the original claims were reduced to about half.  Marghiloman said he accepted the compromise.

My desire to enter into a lasting economic union with Roumania played an important part in the negotiations.  It was clear to me that this demand was in Austrian, but not in Hungarian interests; but I still think that, even so, it was my duty, although joint Minister for both countries, to work for Austria, as the shortage of provisions made the opening of the Roumanian granaries very desirable.  As was to be expected, this clause in the negotiations met with the most violent opposition in Hungary, and it was at first impossible to see a way out of the difficulty.  I never took back my demand, however, and was firmly resolved that peace should not be signed if my plan was not realised.  I was dismissed from office in the middle of the negotiations, and my successor did not attach the same importance to that particular item as I did.

On the German side there was at once evidence of that insatiable appetite which we had already noticed at Brest-Litovsk.  The Germans wished to have a species of war indemnity by compelling Roumania to cede her petroleum springs, her railways and harbours to German companies, and placing the permanent control of her finances in German hands.  I opposed these demands in the most decided manner from the very first, as I was convinced that such terms would preclude all possibility of any friendly relations in future.  I went so far as to ask the Emperor Charles to telegraph direct to the Emperor William in that connection, which met with a certain amount of success.  In the end the German claims were reduced by about fifty per cent., and accepted by Marghiloman in the milder form.  With regard to the petroleum question, a ninety years’ lease was agreed on.  In the matter of the corn supply, Roumania was to bind