How the situation was developed was made clear from a long statement sent to London, by a circuitous route, by the Rome correspondent of _The Daily Telegraph_, and published on September 5th. He said that the Italian fleet was fully mobilised, and was ready for all eventualities. The battle fleet was concentrated at Taranto, under the able and energetic command of the Duke of the Abruzzi. No decree had been issued for the complete mobilisation of the army; but six classes of reservists had been called out. The calling out of fifteen classes would be tantamount to a general mobilisation. Very careful and very thorough preparations were being made. Troops were being slowly and methodically concentrated on the Austrian frontier. Those stationed on the French frontier, except the ordinary peace garrisons and depôt troops, had already been transferred. Any idea of Italy acting against France was out of the question; but these preparations did not necessarily mean war with Austria. The Italian Government, clearly enough, was fully alive to the situation. Italy wished to bide her time till the psychological moment arrived. That moment had not yet arrived. In any case, the Government was anxious not to precipitate events until after the Conclave electing the new Pope had finished its labours. All sailings of the Veloce transatlantic liners were suspended at this time. This was regarded as significant, as transports would not be needed unless Italy were contemplating landing troops either in Albania or on Austrian soil. * * * * * The correspondent added: If Italy goes to war with Austria it will be a popular war. The Government knows well that if Germany and Austria win they will bear as great a grudge against Italy for remaining neutral as they would if she threw in her lot against them. It is most important, therefore, that Italy should see to it that Germany and Austria do not win. If, on the other hand, the Triple Entente and their allies win, all Italy can hope for on the conclusion of hostilities is the cession of Trent and the protectorate of Central Albania, with Valona as a reward for her neutrality. Whereas if Italy threw in her lot against Germany and Austria she could hope to recover Trieste and to establish a sound military reputation into the bargain. Moreover, if Italy remains neutral she is likely to experience before long grave economic and social unrest. Italy is very hardly hit by the war. There is a great deal of unemployment. All this would be forgotten if she went to war; and although the problems would recur after the peace, there is much to be said for putting off the evil hour till after the new settlement.