The Hungarian Government, led by Count Karolyi, resigned on Friday
week. The ARtcs had proclaimed a neutral zone between the Hungarian and Rumanian forces. Count Karolyi used this an a pretext for leaving office, where he seems to have been extremely uncomfortable. He issued an appeal to " the proletariat of the world," and transferred his nominal power to the Hungarian Bolsheviks. These people formed a Govern- ment, declared Hungary to be a Soviet Republic," and asked the Russian Bolsheviks to become their allies. As the Magyar has a deep-rooted hatred for all his neighbours. and especially for the Russians who helped to put down the revolution of 1918, a Russo-Magyar alliance is not very likely. Nor is it by any means clear that the Budapest Bolsheviks are a sub- stantial party and not a mere bogy put up to frighten the Allies. The Allied officers at Budapest do not seem to have been molested. Hungary's action is a direct challenge to the Allies, and the Germans are waiting to see how the Allies take it. Meanwhile, a Rumanian army has crossed the border.
