Little Entente Controls

The chief obstacle to an international loan to put Hungarian finances on a sound footing, a project similar to that recently effected in the case of Austria, has been removed by the agreement of the Little Entente (CzechoSlovakia, Yugo-Slavia, Rumania) at their Sinaia (Rumania) Conference to waive their liens on reparations.

However, the Little Entente demanded, in return for this concession, certain guarantees on the Hungarian side, including the discontinuance of Hungarian irredentist propaganda in the three countries and representation of the Little Entente upon the Control Commission, which will see that the loan is applied to curing Hungary's financial difficulties.

This last stipulation is repugnant to the Hungarian people and may cause the fall of the Hungarian Cabinet. The Hungarian representatives at Sinaia fought it, being willing to submit to English or Italian control, but not to control by their sworn enemies. However, Count Bethlen, Hungary's Premier, declared that

Hungary's chief need was foreign capital, if only for the movement of crops. Economic conditions in Hungary are good, but capital is of vital importance. No foreign power will lend without control; the Little Entente is in a position to block all loans, unless it is given control; the Hungarians don't want Little Entente control, they want money. The dilemma is unescapable. Only the gradual weakening of the Little Entente, prophesied at Budapest, can afford the Magyars consolation.