n Government considered it
necessary to proceed without delay to an exchange of views and
consequently to concrete negotiations with the Austro-Hungarian
Government concerning the complex situation arising out of the conflict
which that Government had provoked.

Count Berchtold at first refused. He declared that the time had not
arrived for negotiations. Subsequently, upon our rejoinder, in which the
German Government united, Count Berchtold agreed to exchange views as
suggested. We promptly declared, as one of our fundamental objects, that
the compensation on which the agreement should be based should relate to
territories at the time under the dominion of Austria-Hungary.

The discussion continued for months, from the first days of December to
March, and it was not until the end of March that Baron Burian offered a
zone of territory comprised within a line extending from the existing
boundary to a point just north of the City of Trent.

In exchange for this proposed cession the Austro-Hungarian Government
demanded a number of pledges, including among them an assurance of
entire liberty of action in the Balkans. Note should be made of the fact
that the cession of the territory around Trent was not intended to be
immediately effective as we demanded, but was to be made only upon the
termination of the European war. We replied that the offer was not
acceptable, and then presented the minimum concessions which could meet
in part our national aspirations and strengthen in an equitable manner
our strategic position in the Adriatic.

These demands comprised: The extension of the boundary in Trentino, a
new boundary on the Isonzo, special provision for Trieste, the cession
of certain islands of the Curzolari Archipelago, the abandonment of
Austrian claims in Albania, and the recognition of our possession of
Avlona and the islands of the Aegean Sea, which we occupied during our
war with Turkey.

At first our demands were categorically rejected. It was not until
another month of conversation that Austria-Hungary was induced to
increase the zone of territory she was prepared to cede in the Trentino
and then only as far as Mezzo Lombardo, thereby excluding the territory
inhabited by people of the Italian race, such as the Valle del Noce, Val
di Fasso, and Val di Ampezzo. Such a proposal would have given to Italy
a boundary of no strategical value. In addition the Austro-Hungarian
Government maintained its determination not t