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Even the Social Democratic Party could not overcome nationalist antagonism. In 1899, at the party congress at Brünn (now Brno, Czech Republic), the Social Democrats had presented a national reform program based on democratic federalism, which would have granted the right of national decisions to territorial units formed on a basis of nationality. Karl Renner and Otto Bauer, who later became leaders of German-Austrian socialism, drafted various programs for the solution of the nationality problem in books published between 1900 and 1910. But these efforts could not prevent the socialists from splitting along national lines too, and in 1910 the Czech socialists declared themselves independent of the Social Democratic Party. Party rivalries

Such national differences weakened the socialist position in the elections of 1911. More than 50 parties had competed in the campaign, and, since the German nationalist parties had allied in the Deutscher Nationalverband (German National League), they managed to return to parliament as the strongest single party, gaining 104 seats out of 516. The Christian Socialists, weakened by personal rivalry, suffered heavy losses, winning only 76 seats. The Social Democrats received 44 seats and the Czech Social Democrats 24. The Czech parties were badly divided, with those representing the Czech middle class gaining 64 seats. Prime Minister Bienerth found himself unable to form a workable ministry, and he was replaced by Gautsch, reappointed for the third and final time, who tried to reconcile the Germans and the Czechs.

For a while negotiations seemed quite successful, but extremist incidents deadlocked the talks, and the Gautsch cabinet was replaced by a new ministry headed by Karl, Graf (count) von Stürgkh, in November 1911. Unable to deal with the nationality problem in a parliamentarian fashion, Stürgkh repeatedly suspended the Reichsrat. It was characteristic of the general political climate in Europe that Stürgkh had to concentrate his legislative program on the improvement of Austrian armament, for international crises overshadowed the nationality conflict. Conflict with Serbia

Since the Bosnian crisis of 1908–09, Austrian diplomats had been convinced that war with Serbia was bound to come. Aehrenthal died in February 1912, at a moment when an Italian-Turkish conflict over Tripoli (now in Libya) had provoked anti-Turkish sentiment in the Balkan states (see Italo-Turkish War). Leopold, Graf (count) von Berchtold, who directed Austro-Hungarian foreign policy from 1912 on, did not have the qualities required in such a critical period. Aehrenthal had been able to silence the warmongering activities of Conrad, the Habsburg chief of staff who continued to advocate preventive war against Italy and Serbia, but Berchtold yielded to the aggressive policies of the military and the younger members of his ministry. During the Balkan Wars (1912–13), fought by the Balkan states over the remnants of the Ottoman Empire, Austria-Hungary twice tried to force Serbia to withdraw from positions gained by threatening it with an ultimatum. In February and October 1913, military action against Serbia was contemplated, but in both instances neither Italy nor Germany was willing to guarantee support. Austria-Hungary ultimately had to acquiesce in Serbia’s territorial gains. But by supporting Bulgaria’s claims against Serbia, Austria-Hungary also had alienated Romania, which had shown resentment against the Habsburg monarchy because of the treatment of non-Hungarian nationalities in Hungary. Romania thus joined Italy and Serbia in support of irredentist movements inside the Habsburg monarchy. By 1914, leading government circles in Vienna were convinced that offensive action against the foreign protagonists of irredentist claims was essential to the integrity of the empire.

In June 1914 Archduke Franz Ferdinand, the heir of Franz Joseph, participated in army maneuvers in the provinces of Bosnia and Herzegovina, disregarding warnings that his visit would arouse considerable hostility. When Franz Ferdinand and his wife were assassinated by the Bosnian Serb nationalist Gavrilo Princip at Sarajevo (Bosnia-Herzegovina) on June 28, 1914, the Austro-Hungarian foreign office decided to use the opportunity for a final reckoning with the Serbian danger. The support of Germany was sought and received, and the Austro-Hungarian foreign office drafted an ultimatum putting the responsibility for the assassination on the Serbian government and demanding full satisfaction. The attitude of the foreign office was shared by Conrad and the Austrian prime minister, Stürgkh, but it was opposed by the Hungarian prime minister, István, Count Tisza, who wanted an assurance that a military move against Serbia would not result in territorial acquisitions and thus increase the Serb element in the monarchy. His demand satisfied, Tisza joined the advocates of war.

Archduke Franz Ferdinand and his wife SophieAustrian Archduke Franz Ferdinand and his wife, Sophie, riding in an open carriage at Sarajevo shortly before their assassination, June 28, 1914.World History Archive/ARPL/age fotostock

In ministerial meetings on July 15 and 19, a deliberately provocative ultimatum was drafted in words that supposedly excluded the possibility of acceptance by Serbia. The ultimatum was handed to the Serbian government on July 23. The Serbian answer, handed in on time on July 25, was declared insufficient, though Serbia had agreed to all Austro-Hungarian demands except for two that, in effect, entailed constitutional changes in the Serbian government. These demands were that certain unnamed Serbian officials be dismissed at the whim of Austria-Hungary and that Austro-Hungarian officials participate, on Serbian soil, in the suppression of organizations hostile to Austria-Hungary and in the judicial proceedings against their members. In its reply, the Serbian government pointed out that such demands were unprecedented in relations between sovereign states, but it nevertheless agreed to submit the matter to the international Permanent Court of Arbitration or to the arbitration of the Great Powers (comprising France, Germany, Great Britain, and Russia, in addition to Austria). On receiving this reply, the Austro-Hungarian ambassador left Belgrade (Serbia), severing diplomatic relations between the two countries.

Foreign Minister Berchtold and his government were clearly determined to make war on Serbia, regardless of the fact that such action might result in war between the Great Powers. While the European governments frantically tried to offer compromise solutions, Austria decided on a fait accompli. On July 28, 1914, Berchtold asked Franz Joseph to sign the declaration of war, informing him that

it cannot be excluded that the [Triple] Entente powers [Russia, France, and Great Britain] might make another move to bring about a peaceful settlement of the conflict unless a declaration of war establishes a fait accompli [eine klare Situation geschaffen].

In the meantime, the German government had taken control of the situation. Placing German strategic and national plans over Austro-Hungarian interests, Germany changed the Balkan conflict into a continental war by declaring war against Russia and France. (See World War I.) World War I