NEWS OF THE WEEK.
H E most important piece of news this week is the accept- ance by Turkey of the offer made by the Government of Austria-Hungary to pay a sum of 2T.2,500,000 in considera- tion of the annexation of the provinces. In order to "save the face" of the Austrian Government, which originally declared that it would pay no indemnity, this sum is to be regarded as compensation for the former State properties in Bosnia and Herzegovina. Further, the Austro-Hungarian Government requires that the " jnridical question" whether the properties are really Ottoman State property or the property of the two provinces "shall be authentically settled eventually by arbitration." It seems to be generally agreed that this proviso Will not have any practical effect. It is also stated to be part Of the bargain that there will be an Austro-Turkish commercial treaty, which will no doubt put an end to the boycott of Austrian goods, and in which Austria-Hungary will pledge herself to consent to an increase of the Turkish Customs from 11 per cent. to 15 per cent., and to the establishment of certain monopolies. To make this clause operative, however, the consent of the rest of the Powers will be required.
