be formed into
an autonomous state with complete independence from Austro-Hungarian
rule. Trieste to be a free port.

IV. The cession by Austria-Hungary of the Curzolari Islands off
the coast of Dalmatia.

V. The immediate occupation by Italy of the ceded territories and
the immediate evacuation by Austria-Hungary of Trieste and the
neighborhood.

VI. The recognition by Austria-Hungary of Italian sovereignty over
Valona and district.

VII. The renunciation by Austria-Hungary of any claims in Albania.

VIII. A complete amnesty for all political or military prisoners
belonging to the territories mentioned in I to IV.

The next three articles provided:

IX. That Italy should pay to Austria-Hungary as indemnification
for the loss of government property, as a share of the public debt,
and against all money claims, the sum of 200,000,000 lire.

X. That Italy should pledge herself to maintain neutrality throughout
the war, this pledge applying to both Germany and Austria-Hungary.

XI. That Italy should renounce any further claims under Article
VII of the Triple Alliance for the whole duration of the war, and
that Austria-Hungary should renounce any claim to compensation
for Italy's occupation of the Dodecannesus.

These demands were pressed by Italy in the face of disquieting
rumors that Austria-Hungary was on the point of concluding a separate
peace with Russia, which would leave her free to devote her whole
attention to Italy and Serbia if the former refused to make terms.
They were rejected by Austria, April 16, with a few unimportant
exceptions: Article VIII was accepted. As regards Article IX, Baron
Burian asserted that the amount offered was totally insufficient, but
suggested that the question of pecuniary indemnity be referred to The
Hague. He held that the pledge of neutrality should be extended to
Turkey as well as to Germany and Austria, and asked for the insertion
of an extra clause in Article XI, providing that Italy's renunciation
of further claims under Article VII of the Triple Alliance should
cover all such advantages, territorial and otherwise, as Austria
might gain from the treaty of peace which should terminate the war.
The only cardinal point on which Austria offered concessions was
in regard to the proposed Trentino frontier. This she agreed might
follow a course more advantageous for Italy than that suggested in
Austria's former proposals.

Baron Sonnino's reply was sent from Rome on Apri