:

"A neutral government cannot be allowed to trade in contraband
unhindered, if the trade take the form and dimensions whereby the
neutrality of the country will be endangered. The export of war
material from the United States as a proceeding of the present war is
not in consonance with the definition of neutrality. The American
Government, therefore, is undoubtedly entitled to prohibit the export
of war material.

"Regarding the possible objections that American industry is willing
to supply Austria-Hungary and Germany, which, however, is impossible
owing to the war situation, it may be pointed out that the American
Government is in a position to redress this state of things. It would
be quite sufficient to advise the enemies of Austria-Hungary and
Germany that the supply of foodstuffs and war material would be
suspended if legitimate trade in these articles between Americans and
neutral countries was not permitted."

In conclusion, the Austro-Hungarian Government appeals to the United
States, calling attention to the uninterrupted good relations and
friendship between that country and the dual monarchy, to take the
present note under careful consideration.

WHY AUSTRIA ACTED

_A dispatch from Vienna, via London, dated July 16, gives the
following information from The Associated Press:_

From a highly authoritative source at the Foreign Office a
representative of The Associated Press has received an explanation of
the motives that are said to have inspired the dispatch of the
Austro-Hungarian note to the United States regarding the American
traffic in war munitions.

The Austro-Hungarian statesman who spoke said that, although the facts
upon which the note was based had been in existence for a long time,
the communication was sent only now, when, after great victories in
Galicia, it could not be interpreted as a cry for help from a land in
distress. He disavowed in advance any idea that the note was sent at
the request or inspiration of Germany, asserting that the step was
taken spontaneously in the hope that, owing to the undisturbed
friendly relations between Austria-Hungary and the United States, the
note would be assured a sympathetic reception in the latter country.

"The note," said this statesman, "is inspired by friendly feelings of
the monarchy toward the Union, where so many of our subjects have
found a second home. It is the speech of a friend to a friend--an
attitude which we are the more just