ations in
Bucharest, considered the question of imposing on Roumania, when
treating for peace, a series of obligations especially in connection
with the economical relations amounting to a kind of indirect war
indemnity. It was also contemplated that the occupation of Wallachia
should be maintained for five or six years after the conclusion of
peace. Roumania should then give up its petroleum districts, its
railways, harbours and domains to German companies as their property,
and submit itself to a permanent financial control. Austria-Hungary
opposed these demands from the first on the grounds that no friendly
relations could ever be expected to exist with a Roumania which had
been economically plundered to such a complete extent; and
Austria-Hungary was obliged to maintain amicable relations with
Roumania.

This standpoint was most emphatically set forth, and not without some
success, on February 5 at a conference with the Reichskansler. In the
middle of February the Emperor sent a personal message to the German
Emperor cautioning him against this plan, which might prove an obstacle
in the way of peace. Roumania was not advised of these demands until
comparatively late in the negotiations, after the appointment of
Marghiloman. Until then the questions involved gave rise to constant
discussion between Germany and Austria-Hungary, the latter throughout
endeavouring to reduce the German demands, not only with a view to
arriving at a peace of mutual understanding, but also because, if
Germany gained a footing in Roumania on the terms originally
contemplated, Austro-Hungarian economical interests must inevitably
suffer thereby. The demands originally formulated with regard to the
Roumanian railways and domains were then relinquished by Germany, and
the plan of a cession of the Roumanian harbours was altered so as to
amount to the establishment of a Roumanian-German-Austro-Hungarian
harbour company, which, however, eventually came to nothing. The
petroleum question, too, was reduced from a cession to a ninety years'
tenure of the state petroleum districts and the formation of a
monopoly trading company for petroleum under German management.
Finally, an economic arrangement was prepared which should secure the
agricultural products of Roumania to the Central Powers for a series of
years. The idea of a permanent German control of the Roumanian finances
was also relinquished owing to Austro-Hungarian opposition. The
negotiati