Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1916-07-08
AUSTRO-CERMAN
HOPES BLASTED
Aspirations for Closer Economic Union
Given Setback by Budapest
Chamber of Commerce.

N1enna.-(C correspondence Of the AS
sOciated Press German and Aus
trian aspirations for closer economic
union have received a setback at the
hands of the Budapest chamber of
commerce. In emphatically worded
resolutions that body has declared that
the new Ausgleich with Austria shall
be for only 10 years, and has further
expressed its conviction that Hungary
must be Independent of Austria in GUS
toms matters, and have her own tariffs.
The Ausgleich is the working agree
ment between Austria and Hungary for
carrying on the joint affairs of the dual
monarchy, including provision for GUS
toms and finances. Originating in the
compromise of 1867 the legal term of
the agreement was fixed at 10 years,
but since the movement began for
closer economic union between Ger
many and Austria-Hungary it has been
urged that the Ausgleich, which ex-
pires next year, be extended to 20 or 25
years so as to make possible some of
the readjuStmentS that would not be
possible in shorter perior. The lead
ers in the movement for the economic
union, who have been meeting in Ber-
lin, Vienna, Budapest, Munich, Ores
den and Prague. have considered the
extension of the Ausgleich to be a most
essential matter, and the action of the
Budapest chamber of commerce in Op-
position to it has caused much irrita-
ton among those who hope that the
new economic alliance will be per-
fected.
1t is said that the Hungarian parlia-
ment, on the whole, is also opposed to
the extension of the Ausgleich. The
negotiations every 10 years for each
new AuSgleich have been used by the
politicians in Budapest to extract all
sorts of com pensation, political, finan-
ciaI and economic, from the govern
ment in Vienna, and the Hungarians
will not readily sacrifice such a pow
erful weapon.
The determined stand by the Buda-
pest chamber in the matter of a sep
aratiOn of the customs systems of the
monarchy has also opened up serious
problems. While Hungary is chiefly
an agricultural state. it has in the past
few years been labOriously building I'D
various industries with government
subventions and all sorts of political
assistance. to the point of competition
with Austria, which is chiefly a manu-
featuring state. In Hungary it has
been decreed that no official supplies
are to be bought outside of Hungary,
not even in Austria, If they can pos
sibly be produced or bought in Hun
gary. Further, the leading industrial
interests have insisted that a speedy
development of home industry can only
be brought about if Hungary has her
own system of tariffs. so as to close
her frontier against Austria, and make
her own commercial treaties with other
nations
The agricultural interests, on the
other hand, prefer the continuance of |
the common customs tariffs for The
whole empire as they desire to shut |
out the importation of foreign grain, |
and cattle, and meat, in common with |
their Austrian associates, and then |
too. they sell most of their produce in |
Austria
Since the outbreak of the war. the
internal relations between Austria and |
Hungary had considerably improved |
and it was hoped that suffering under
this common burden. the two nations
would become still more closely unit ed |
IN the future.
But all the influences of the war,
and the necessity for showing an I'M
divided front to the foe, have failed
10 make the Hungarian manufacturers
-ecede from their demands for Gus
-oms separation from Austria. It is
rue that the resolutions of the cham
Der of commerce admit that the time
5 not opportune for making such a
change. but in the firm
conviction is expressed that an indie.