Although the Balkan question continued to be the source of considerable anxiety and extensive diplomatic conferences, the political horizon of Europe during the latter half of 1913 and the first half of 1914 seemed comparatively cloudless to all but the keenest observers. Like a flash of lightning out of a clear sky, therefore, came the news that the heir to the throne of Austria-Hungary, Archduke Francis Ferdinand, and his wife, the Duchess of Hohenberg, had been assassinated during a visit to Sarajevo, the capital of Bosnia, June 28, 1914, and that the Austrian Government had determined to hold Serbia responsible. England, France, Russia, and Serbia tried, in vain, during the next five weeks to check the outbreak of a general European war. CHAPTER II AUSTRIA-HUNGARY Amongst the great European nations the Austro-Hungarian Empire occupies a unique position. In number of inhabitants it is inferior only to Russia and Germany, whereas it occupies more territory than any other European country, with the single exception of Russia. In spite of this, however, Austria-Hungary possesses no foreign colonies, and those of its inhabitants who, for one reason or another, decided to leave the land of their birth, have, therefore, for years emigrated to foreign countries, and have been lost, in large numbers, to their native country. Of course, the desire for expansion, which is one of the chief characteristics of the historical development of the various nations during the twentieth century, made itself felt in Austria-Hungary as well as everywhere else. Not having any colonies and not having either the financial or military means of acquiring any, the Dual Monarchy has for many years been deeply interested in the Near East. There vast stretches of undeveloped territory, much of which was immediately adjoining its own territory, created a strong desire for possession, or at least for a preponderating influence. This desire was intensified by the peculiar racial conditions which existed in the Dual Monarchy.