ent, and to pay an
indemnity for any damage that may have been caused by German
troops.

"4. Should Belgium oppose the German troops, and in particular
should she throw difficulties in the way of their march by a
resistance of the fortresses on the Meuse, or by destroying
railways, roads, tunnels, or other similar works, Germany will,
to her regret, be compelled to consider Belgium as an enemy.

"In this event Germany can undertake no obligations toward
Belgium, but the eventual adjustment of the relations between the
two States must be left to the decision of arms.

"The German Government, however, entertain the distinct hope that
this eventuality will not occur, and that the Belgian Government
will know how to take the necessary measures to prevent the
occurrence of incidents such as those mentioned. In this case the
friendly ties which bind the two neighboring States will grow
stronger and more enduring."

MONDAY, AUGUST 3, 1914

_Serbia._ On the following day M. Yov. Yovanovitch, former Minister
to Vienna, and now at Nish, the temporary capital of Serbia, made a
long report to M. N. Pashitch, the Prime Minister, of events at
Vienna from the days following the crime of Sarajevo to his
departure from the Austrian capital. The points in this are:

SERBIA'S POSITION EXPLAINED

1. Constant police surveillance of the Serbian legation and menacing
attitude of the public.

2. Sudden change early in July of Austro-Hungarian attitude to the
Sarajevo incident. Press begins to represent it as a manifestation
of Serbian intrigue which Austria must settle, and alone, with
Serbia--eventually by war.

3. Assistance given by German Embassy to this press agitation.

4. Austrian financiers declare that "a settlement with Serbia" is
the only way out of the general financial and economic crisis
prevailing in Austria-Hungary since annexation of Bosnia. Gold
secretly and gradually withdrawn from circulation.

5. Austrian Minister of War, Krobatin, and Chief of Staff,
Hetzendorf, break leave of absence to return to Vienna, the latter
having had a conversation at Carlsbad with German Chief of Staff,
Count Moltke.

6. Reserves retained after stipulated period for maneuvers had
expired and their numbers augmented.

7. Noncommittal answers of Count Tisza, Hungarian Prime Minister, to
interpolations concerning Serbia in Hungarian Diet.

8. Re