and Ocna, on which points he was willing to give way.  When the Marghiloman Cabinet was formed the Austro-Hungarian demands in respect of the frontier line would, despite active opposition on the part of the Hungarian Government, be reduced almost by half.  The negotiations with Roumania were particularly difficult in regard to the question of two places, Azuga and Busteni.  On March 24 Count Czernin prepared to terminate these negotiations, declaring that he was ready to renounce all claim to Azuga and Busteni and halve his demands as to the much-debated Lotru district, provided Marghiloman were willing to arrange the frontier question on this basis.  Marghiloman declared himself satisfied with this compromise.  On the next day, however, it was nevertheless rejected by the Hungarian Government, and not until after further telegraphic communication with the Emperor and Wekerle was the assent of all competent authorities obtained.  This had, indeed, been widely considered in Hungarian circles as an impossibility.

Another Austro-Hungarian demand which played some part in the Bucharest negotiations was in connection with the plan of an economical alliance between Austria-Hungary and Roumania.  This was of especial interest to the Austrian Government, whereas the frontier question, albeit in some degree affecting Austria as well, was a matter of indifference to this Government, which, as a matter of fact, did not sympathise with the demands at all.  The plan for an economical alliance, however, met with opposition in Hungary.  Immediately before the commencement of the Bucharest negotiations an attempt was made to overcome this opposition on the part of the Hungarian Government and secure its adherence to the idea of an economical alliance with Roumania—­at any rate, conditionally upon the conclusion of a customs alliance with Germany as planned.  It proved impossible, however, at the time to obtain this assent.  The Hungarian Government reserved the right of considering the question later on, and on March 8 instructed their representatives at Bucharest that they must dissent from the plan, as the future economical alliance with Germany was a matter beyond present consideration.  Consequently this question could play no part at first in the peace negotiations, and all that could be done was to sound the leading Roumanian personages in a purely private manner as to the attitude they would adopt towards such a proposal.  The idea was, generally speaking, well received by Roumania, and the prevalent opinion was that such an alliance would be distinctly advisable from Roumania’s point of view.  A further attempt was therefore made, during the pause in the peace negotiations in the East, to overcome the opposition of the Hungarian Government; these deliberations were, however, not concluded when the Minister for Foreign Affairs resigned his office.