2 JUNE 1906, Page 1

On Tuesday it was announced that the Premier of Austria,

Prince Hohenlohe, had resigned. Dr. Wekerle, the Hungarian Premier, asked that the new Austro-Hungarian tariff should be voted in Hungary as a Hungarian tariff alone, and that the future relations with Austria should be regulated by a com- mercial treaty. This meant a redersal of the existing Customs connection between the two countries, and as such was stronkly opposed by Austrian statesmen. To the surprise of every one, however, the Emperor accepted Dr. Wekerle's proposal, an Prince Hohenlohe had no alternative but to resign. The incident has caused great irritation in Austria, where the retiring Premier's action is fully supported. It is generally believed that the Emperor's sanction was one of the terms in his treaty with the Party of Independence. In any case, it has increased in Hungary the popularity of the Crown, and

may make the way easier for the Coalition Government, whose policy is temporary moderation on the Constitutional question. The result in Austria has been to create an Austrian In- dependence Party and to make Prince Hobenlohe the most popular man in the country. It is unfortunate that this unforeseen difficulty should have appeared to complicate the already sufficiently complex affairs of the Dual Monarchy. Both nations, at any rate, have now got a grievance to bargain with.