only till the outbreak of the war
of 1914, but even for some time later. This alliance originally was
made only for five years, but at the expiration of this time it was
renewed in 1887 and again later.

Of the causes and results of the Austro-Prussian War of 1866 we have
heard already in the consideration of Germany's history. Immediately
after its conclusion Austria-Hungary devoted its energies chiefly to
internal affairs and in 1867 succeeded in a reorganization of the
difficulties which had arisen with Hungary. The result was the
"Ausgleich" which established Hungary practically on an equal basis
with Austria, giving it a separate constitution, legislature and
cabinet. It is from this dual basis that the term "Dual Monarchy"
was derived and the arrangement made then fundamentally is in
existence to-day.

Throughout the ensuing years Austria-Hungary's position and
influence amongst the great European powers was of little direct
importance. In the first place the Dual Monarchy was occupied
continuously with the most vexing internal questions caused by the
incessant difficulties arising between its racially different
population. These were responsible for the fall of one ministry
after another, and frequently caused grave apprehension to all
Europe. For many years the disintegration of the empire was feared
and expected. But in spite of all difficulties it held together. In
the second place the country remained for many years chiefly
agricultural and even to-day, considering its extent, is only
moderately industrial. This made it unnecessary for Austria-Hungary
to concern itself directly with such questions as the colonization
of Africa or the division of China. Only occasionally it made its
influence felt indirectly by supporting the policies and claims of
its two allies, Germany and Italy.

In 1908, however, it took a step that immediately brought it into
the center of world politics. In that year the annexation of
Bosnia-Herzegovina was announced, although for many years previous
the Turkish suzerainty over these two provinces had been less than
nominal. As this was followed immediately by a declaration of
independence on the part of Bulgaria, the jealousy of Serbia was
aroused. But both the difficulties with this country and with Turkey
about the annexation were finally adjusted, mainly through the
strong support which Germany gave to its ally and in 1909 all of the
powers recognized the annexation.

Once m