by the relations between Austria and Hungary were
regulated.

The two separate states--Austria and Hungary--are completely independent of
each other, and each has its own parliament and its own government. The
unity of the monarchy is expressed in the common head of the state, who
bears the title Emperor of Austria and Apostolic King of Hungary, and in
the common administration of a series of affairs, which affect both halves
of the Dual Monarchy. These are: (1) foreign affairs, including diplomatic
and consular representation abroad; (2) the army, including the navy, but
excluding the annual voting of recruits, and the special army of each
state; (3) finance in so far as it concerns joint expenditure.

For the administration of these common affairs there are three joint
ministries: the ministry of foreign affairs and of the imperial and royal
house, the ministry of war, and the ministry of finance. It must be noted
that the authority of the joint ministers is restricted to common affairs,
and that they are not allowed to direct or exercise any influence on
affairs of government affecting separately one of the halves of the
monarchy. [v.03 p.0003] The minister of foreign affairs conducts the
international relations of the Dual Monarchy, and can conclude
international treaties. But commercial treaties, and such state treaties as
impose burdens on the state, or parts of the state, or involve a change of
territory, require the parliamentary assent of both states. The minister of
war is the head for the administration of all military affairs, except
those of the Austrian _Landwehr_ and of the Hungarian _Honveds_, which are
committed to the ministries for national defence of the two respective
states. But the supreme command of the army is vested in the monarch, who
has the power to take all measures regarding the whole army. It follows,
therefore, that the total armed power of the Dual Monarchy forms a whole
under the supreme command of the sovereign. The minister of finance has
charge of the finances of common affairs, prepares the joint budget, and
administers the joint state debt. (Till 1909 the provinces of Bosnia and
Herzegovina were also administered by the joint minister of finance,
excepting matters exclusively dependent on the minister of war.) For the
control of the common finances, there is appointed a joint supreme court of
accounts, which audits the accounts of the joint ministries.

_Budget_.--Side by side wi