During the first phase of the conversations which were carried on between Roumania and the Entente there would appear to have been no serious hitch. They culminated in a loan of L5,000,000 advanced in January 1915. In the following month they ceased and were not resumed until April, when M. Bratiano was informed that it would facilitate matters if he would discuss terms with the Tsar's Government. By means of an exchange of notes an arrangement had been come to by which Roumania was to have "the country inhabited by the Roumanians of Austria-Hungary" in return for her neutrality and on the express condition that she should occupy them _par les armes_ before the close of the war. I announced this agreement in the summer of 1915 and, commenting on the controversy to which it gave rise, pointed out that it amounted only to a promise made by Russia and an option given to Roumania, which the latter state was at liberty to take up or forgo as it might think fit. It bound her to nothing. Consequently, to accuse her of having broken faith with Italy or the Entente is to betray a complete lack of acquaintance with the facts. It was only when Roumania's military participation was solicited that difficulties began to make themselves felt. And they proved insurmountable. So long as the Russian armies were victorious Roumania's demands were rejected. When the Tsar's troops, for lack of ammunition, were obliged to retreat, concessions were made very gradually, slight concessions at first, which became larger as the withdrawal proceeded, until finally--the Russian troops being driven out--everything was conceded, when it was too late. For with the departure of the Russian armies Roumania was so exposed to attack from various sides, and so isolated from her protectors, that her military experts deemed intervention to be dangerous for herself and useless to the Allies.