Arizona sentinel Yuma southwest., 1915-12-23
Associated Press)

ences between German and
 Austro-Hungarian politicians
 and leading representatives of
 finance and commerce, are
 now going on in Vienna and
 Berlin, for the purpose CT
 finding a basis for establish
 ing closer economic relations
 between the allied.empires.
 Although several meetings
 have already taken place, no
 definite results have yet been
 obtained. The industrial and
 commercial Interests of the
 tw ocountries are so divergent
 that it is difficult to see how
 an understanding can be had,
 which will prove satisfactory
 to both sides. And so far ev-
 cry conference seems only to
 have discovered new troubles
 in the way of reaching an
 agreement.
 AuStro-Hungarians fear
 that just as at present they 
 are under the domination Of Germany in military affairs,
 so, later, their financial and economic independence will
 also be lost before the persist ant and powerful monarch of Germany.
 The whole question is one of vital importance, for the future welfare of the dual monarchy, and exciteS far more interest in the business community than the progress of the war.
 Since the Franco-Prussian war, Ger many has become an industrial state l while Austro-Hungary has remained ] essentially agricultural With the ex ception of Bohemia, Moravia and Lower Austria, which includes Vien- la, all the other provinces of Austria Are purely agricultural, and Hungary s overwhelmingly so h both parlia- ments at Vienna and Budapest, the agrarians always possess a large ma jority.
 Nevertheless, both politically and lilitarily, a closer union between Ger many and Austria is generally re- garded as an absolute necessity, and will doubtless continue to be so long after the war is ended But the big problem as to how this is to be brought lbout is exceedingly complex.
 By high protective duties Austria has ong maintained an economic exist [ ence, independent of Germany, and in iced even opposed to German inter- ests. In Austria everything is much [ learer than in Germany, from twenty o even fifty per cent. The difference n prices is especially great in heavy wares, such as coal, iron, steel ano ( machinery. It is only through these duties that Austria has al C Il managed to develop a growing in ustry, and prevent the country from eing flooded with cheap German pro f. ucts.
 For some years, Austria has almos; n lonopolized the trade in the Balkans h nd the Levant, but latterly German ir lerchants have been creeping in there V; nd capturing customers. This has tC cen the case more than ever since le annexation by Austro- Hungary of ie osnia and Herzegovina in 1909, when b1 Oth Turkey and Serbia boycotted all m Ustrian goods. The rapidity with I; hich Germany seized the opportunity W , enter these markets caused intense g1 ritation in Vienna and Budapest at De le time. Nor has this feeling dimin- w he'd since German trade has steadily own in Southeastern Europe while nc ustria's has as steadily decreased. tb How all these matters will develop th ter the war nobody can foresee. Un- ci; Austro-Hungary IS paced pc lder heavy obligations to Germany he r her military aid in the war. How pa Id in what form will Germany re- lire payment for such service? Prob is ly through preferential customs tar CT s, or perhaps by customs union. In as -her case it is declared Germany en ands to gain all the profit and Aus all "a to suffer all the injury. For when ou rman wares would swamp Austrian the arkets, prices generally would be brt aa0d IrNxrr