Austrian intrigue is everywhere apparent, not only in Belgrade, but throughout the whole of Servia. Austria does not wish either a national or a staple Government in Servia, and so, because they could not obtain their ends, and because the present Government voices the national ideas of the whole of the Serb people—who are as a matter of fact spread over Croatia, Slavonia, Bosnia, Herzegovina, Montenegro, and part of Hungary—they have pursued the Customs War, and put a prohibitive tariff upon everything in the endeavour to close entirely the world’s markets to Servia. The latter has of course retaliated by placing a prohibitive tariff upon all goods from those nations who have no treaty—a move which is of course directed against Austria, but by which other Powers must, for the present, suffer. As regards England, the first commercial treaty made by Servia after the Berlin Treaty was with Great Britain, and it served as the base of all the other treaties. Of this Austria-Hungary was jealous, and from that time until to-day Austria has done everything in her power to discredit and discourage British trade in the Balkans. In fact, so seriously detrimental has been Austria’s influence against British trade that naturally some time must elapse ere the damage done can be repaired. Meanwhile, a new commercial treaty with England has been arranged, for it was in Servia’s greatest interest that this should be done. Every Servian I spoke to was loud in his praises of England, and of English methods. Servia is very anxious to export her agricultural produce to England, while in Servia—now that Austrian imports have stopped—there are many open markets for English goods. Austria believed that as all Servian exports were sent into Austria-Hungary, Servia would be obliged in the end to accept their drastic and unfair terms—the purchase of cannon and other restrictions. On the contrary, however, it says much for Servia’s enterprise that, though the Austrian frontier has been closed during 1906, yet Servia has exported all her goods by way of Varna or Braila, or by Salonica, to which port a line of rail runs from Nisch. The producer has felt the Austrian oppression but little, if any at all. In fact, it is the opinion of many statesmen in Servia that it would actually be in the country’s interests if Austria continues her present hostile Customs policy, for it will then compel the Servians to look for markets farther afield, and arouse them to take strong initiatives. It should be noted, too, that fifteen years ago Austria raised the same trouble with Roumania, and the Roumanians are now happily emancipated from the Austrian market, and are consequently prosperous.