serious difference of opinion, the Foreign Minister, in entire
agreement with the Emperor, even before the commencement of the
negotiations in the middle of February, took up the position that
demands connected with the frontier line should not offer any obstacle
to the conclusion of peace. The rectification of the frontier should
only seriously be insisted on as far as could be done on the basis of
a loyal and, for the future, amicable relations with Roumania. Hungary
regarded this lenient attitude on the part of the Foreign Minister
with increasing disapproval. We pointed out that a frontier line
conceding cities and petroleum districts to Hungary would be
unfortunate in every respect. From the point of view of internal
politics, because the number of non-Hungarian inhabitants would be
thereby increased; from the military point of view, because it would
give rise to frontier conflicts with unreliable Roumanian factions;
and, finally, from the point of view of foreign policy, because it
would mean annexations and the transference of population this way and
that, rendering friendly relations with Roumania an impossibility.
Nevertheless, it would be necessary for a time to hold fast by the
frontier line as originally conceived, so that the point could be used
to bring about the establishment in Roumania of a regime amicably
disposed toward the Central Powers. The Foreign Minister was
particularly anxious to see a Marghiloman Cabinet formed, inaugurating
a policy friendly to ourselves. He believed that with such a Cabinet
it would be easier to arrive at a peace of mutual understanding, and
was also resolved to render possible such a peace by extensive
concessions, especially by giving his diplomatic support in the
Bessarabian question. He informed Marghiloman also in writing that he
would be prepared to grant important concessions to a Cabinet of which
he, Marghiloman, was the head, in particular as regards the cession of
inhabited places such as Turnu-Severin 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