New Britain herald., 1916-07-14
HUNGARY ALOOF TO AUSTRIA TRADE PACT
Insists on Being Independent in
 Customs Affairs

Correspondence Of the ASSO IrcsS).
 Vienna, June 15.-German and
 Austrian aspirations for closer ecc-
 homie union have received a setback
 at the hands of the Budapest Cham Der of Commerce. In emphatically
 worded resolutions that body has de-
 clared that the new Ausgleich with
 Austria shall be for only ten years,
 and has further expressed it's convic-
 ton that Hungary must be indepen-
 dent of Austria in customs matters
 and have her own tariffs
 Ten Year Agreement.
 The Ausgleich is the working agree ment between Austria and Hungary for carrying on the joint affairs of the dual monarchy, including provi- sion for customs and finances. Ori- ginating in the compromise of 1867 the legal term of the agreement was fixed at ten years, but since the move ment began for a closer economic union between Germany and Austria Hungary it has been urged that the Ausgleich, which expires next year, be extended to twenty or twenty-five years so as to make possible some of the readjustments that would not be possible in a shorter period. The 6CO- homie union, who have been meeting in Berlin. Vienna, Budapest. Munich Dresden and Prague have considered the extension of the Ausgleich to be 8 most essential natter, and the ac- ton of the Budapest Chamber of Commerce in opposition to it has caused much irritation among those who hope that the new economic a1- Hance will be perfected
 It is said that the Hungarian par Hament, on the whole, is also op- posed to the extension of the Ausgle- 1ch. The negotiations every ten years 1 for each new Ausgletch have always been used by the politicians in Buda- pest to extract all sorts of compenSa- 1 tions, political, financial and economic l from the government in Vienna and ! the Hungarians will not readily sacri- lice such powerful weapon.
 Budapest Stubborn
 The determined stand by the Bud apest Chamber in the matter of a separation of the customs systems of 1 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 up various industries with
  of political assistance, to the point of competition with Austria, which is chiefly a manufacturing state In Hungary it has not been decreed that no official supplies are to be bought outside of Hungary, not even in Aus tria, if they can possibly be produced or bought in Hungary. Further, the leading industrial interests have in sisted that a speedy development of home industry can only be brought about if Hungary has her own sys- tenn 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 of 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 inn proved and it was hoped that suffer- ing under this common burden, the two nations would become still more closely united in the future.
 War Makes Little Difference
 But all the influences of the war, and the necessity for showing an un- divided front to the foe, have failed to make the Hungarian manufac ctur- CTS recede from their demands for separation from Austria. It Is true that the resolutions of the Chamber of Commerce admit that the time is not opportune for making such a tre- nfendous change, but the firm con- viction is expressed that an indepen- dent customs territory is the only way of developing home industries. Even this statement of the situation was too l mild for some of the speakers in the debate, who insisted that the separa- ton should be pressed forward with out delay and petitions sent to the parliament to this end.
 With regard to Germany the reso- Iutions demand that a new, reciprocal commercial treaty, shall be entered Into which shall pay the utmost pos Eible regard to the interests of all the participants, without excluding for eign nations from the benefits of the special concessions.