5 OCTOBER 1878, Page 1

The principle of dualism in the Austro-Hungarian Monarchy is being

strained. The Austrians being victorious in Bosnia and Herzegovina, and the Convention having fallen through, the annexation of the two provinces in reality, if not in form, has become certain, and the Hungarians are exceedingly discontented. They fear that the change will increase Slav power within the monarchy, are indignant that the new possession is not made Hungarian, and are suspicious that the Emperor intends to extend his away still further South. The Hungarian Minister of Finance, Herr Szell, has accordingly declared that he can no longer be responsible for expenses, and has tendered his resigna- tion, which has been accepted. The resignation of Herr Tisza, the Premier, has also been offered, and it is possible that the Emperor - King may be compelled to govern for a time with a Ministry taken from the minority. It is more probable, however, that a compromise will be made, the new provinces being governed as an appanage, on the Tuscan precedent. There is no probability whatever that the Hapsburgs will abandon their acquisition, and as the Hungarians do not wish to risk a coup d'etat with the Army in movement and Germany unfavourable, it is probable that they will angrily consent to some arrangement. Otherwise, the Emperor will be compelled to octroyer a new electoral law, giving to the Slays their natural preponderance in Hungary, and Magyar ascendancy, which has of late become unfavourable to the liberties of Eastern Europe, will be a thing of the past.