CHAPTER II ROUMANIA’S AIMS AND INTENTIONS
Monsieur Take Jonesco, Minister of Finance—The smartest man in Roumania—An interview with General Lahovary, Minister of Foreign Affairs—Secret aims of Roumania—A better frontier wanted—Germany’s insincerity—Some plain truths—The question of a Balkan Federation—Oil wells waiting to be exploited by British capital.
I had a number of interviews with the members of the Roumanian Cabinet, General Jacques Lahovary, Minister for Foreign Affairs, and M. Take Jonesco, Minister of Finance, being both particularly helpful to me in my inquiries regarding Roumania’s political aims and aspirations.
With the President of the Council, with General Manu, Minister of War, and with M. Jean Lahovary, Minister of Commerce, I also had long and interesting conversations.
M. Take Jonesco struck me as by far the strongest and shrewdest man in the present Cabinet. Keen, quick, and far-seeing, he has of recent years played a prominent part in bringing his country into its present satisfactory state. Essentially a man of action, a smart politician, and a patriot, he is nevertheless very English, for he has an English wife, and his beautiful home is essentially English. Unlike most statesmen in the East, he is frank and outspoken. He speaks his mind fearlessly, and the Opposition hold him in terror. Through his good offices I was afforded facilities for studying various questions and forming my own conclusions. General Lahovary, too, is a strong and brilliant man politically, of essentially military bearing, with a clever countenance, a long grey moustache, and wears a monocle with a tortoise-shell rim.
His Excellency George Cantacuzen,
Roumanian Prime Minister.
His Excellency Take Jonesco,
Roumanian Minister of Finance.
Photo] [Elliott & Fry.
My audience with him was of an essentially confidential nature. He told me many interesting things which, for the present, it would be injudicious to publish, in view of the strained relations between Bulgaria and Turkey. The Ministry of Foreign Affairs is a millionaire’s palace—huge white-and-gold salons, with polished floors, fine pictures, and beautiful gilt-and-red damask furniture. A showy millionaire built it as his residence, and died soon afterwards. Then the Government bought it for an old song, with the result that the Ministry is housed in more gorgeous quarters than any other Ministry in Europe.
From my inquiries in various political quarters in Bucharest, both among members of the Government and the Opposition, I found one unanimous view, that war between Turkey and Bulgaria over Macedonia must come at an early date. In Roumania the opinion is that even though a European prince be appointed Governor-General of Macedonia, the war between the two countries would only be postponed. It is believed that Bulgaria is strong, and that the Stancioff policy will be to resist the Turk by arms within a very few months.
As Bulgaria hates the Turk, so does Roumania. But the latter will not assist Bulgaria unless she gets some quid pro quo. This fact became very forcibly impressed upon me. Bulgaria cannot attack Turkey without Roumania’s consent, so the Roumanians declare. And moral support will only be given on one condition. That is, if Bulgaria, as the result of the war, annexes any Macedonian territory—as she naturally would do—then she should cede to Roumania that portion of her territory lying between the Danube and the Black Sea, taking a line from a little east of Rustchuk to a little east of Varna. Such condition is certainly not to be viewed in Bulgaria with any satisfaction, yet as its acceptance would mean the extension of Bulgaria to the Adriatic, the settlement of the Macedonian question, and the final destruction of effete Turkey as a power in Europe, the Bulgarian Cabinet are considering it very carefully.
Roumania is not over-anxious to extend her territory, but her present frontier between Rustchuk and the Black Sea is one which she knows it would be impossible to defend in case of hostilities. She therefore desires a better frontier, in order that she can hold her own in time of war. Besides, she naturally will want some of the spoils when the Turks and Greeks are driven from Macedonia.
The Roumanian policy is one of peace, combined with firmness. General Lahovary is not a vacillating statesman. His policy is one of progress, as his action towards Greece over the ill-treatment of Roumanians in Macedonia has shown. It is intended, no doubt, that the much-vexed question shall not be settled without Roumania having a hand in it. As is well known, Germany protects Roumania’s interests in Macedonia. Through her, the Roumanian schools have been established in Salonica, Monastir, and other places; but quite recently the good relations with Germany have been somewhat lessened owing to some friction regarding the exploitation of the Roumanian oil wells by a German syndicate. The German intention was to make a trust, which Roumania promptly quashed by passing a special Act directed against them. It is a curious fact that since this friction Germany has stood by and witnessed the terrible atrocities committed by the Greek bands upon the Roumanians in Macedonia without raising her voice in protest. This, in itself, is sufficient to make one doubt Germany’s sincerity, and certainly the eyes of the Roumanians are already pretty wide open to the machinations of Berlin in the Balkans.
|
|
British Minister at Bucharest. Photo] [Bassano. |
The conflict between Roumania and Greece—whatever may be thought of the very recent discovery of Roumanians in Macedonia—is quite simple. There are in Macedonia undoubtedly a small percentage of the population which speaks Roumanian, and who are appealing to their brothers for protection to allow them to remain Roumanians. In face of this appeal there are two courses of action possible. One is to reply, “You are of no importance; you are so few; you are too far away; you cannot expect us to embroil ourselves in foreign politics for your sake. And besides, our ideals and our aspirations are different.” The other reply is to adopt the course which, for the past forty years, all Roumanian Governments have adopted, namely, to protect and support their subjects abroad and look after their general interests. Roumania has already done this in Macedonia. She obtained an irade from the Sultan recognising the Roumanians in Turkey as a nation apart, and giving them the right to live as Roumanians. And what has been the result? Bands of Greek antartes at once crossed into Macedonia and began to assassinate and torture every Roumanian subject they could lay hands upon. Is it therefore any wonder that diplomatic negotiations should be broken off between Bucharest and Athens?
The action of Roumania in pressing for the rights of Roumanians in Macedonia and in obtaining the irade has, of course, been the subject of much criticism in the European press. M. Take Jonesco has been personally criticised as having been the prime mover of the agitation of the past two years. I mentioned it to him, and he denied that Roumania had any ulterior motive in Macedonia save to protect her subjects there and to allow them their own language, their own religion, their own education, and give them freedom to live as Roumanians. It was absurd, he declared, to suggest that Roumania intended to acquire territory in Macedonia, or that the Roumanian Valachs were of only recent discovery. Their geographical position refuted the first suggestion; and as to the second, he proved to me that geographers and travellers had written about them a century ago, one proof being that the English traveller Leake had mentioned them in his book, published in 1814, saying that the race in question were undoubtedly Roumanians. Leake also says: “The Valachs occupy the centre of Macedonia and Thessaly, and nearly all the Pindre, forming three principal groups.” The Finance Minister also showed me the evidence collected by the Roumanian writer, Nicholas Papahagi, and recently issued under the title Les Roumains de Turquie. To me he proved most conclusively that the Roumanian contention was at least well founded, and that the European critics were incorrect in supposing that Roumania wants territory in Macedonia. She may have her eye upon that little strip of Bulgaria in order to strengthen her frontier, and, I think, quite naturally. She knows that “a big Bulgaria” is bound to arise. She can never hope to be of equal strength with the Bulgar. Therefore she wants to entrench herself now that there is a forthcoming opportunity.
Both General Lahovary and M. Take Jonesco were quite frank with me in their explanation of Roumania’s future policy. Roumania knows that nowadays right, if not supported by force, is not might. Grand words, if not sustained by bayonets, bring serious men into ridicule. During the past two years the Roumanian army has been improved, consolidated, and brought into perfection. But their intentions are entirely pacific, even though they have not hesitated to augment the war budget, and will still augment it if necessary. Roumania intends to remain passive in the present Balkan complications, but if she finds it necessary for the protection of her compatriots in Macedonia she will, like Bulgaria, take arms against the Turk and drive him back into his capital, and across into Asia Minor—which is surely the best place for him.
I spoke with several Roumanian statesmen upon the idea of a Confederation of the Balkan States. Most of them were in accord that such a thing was within the bounds of possibility, but that it was very unlikely that Roumania would ever enter such a Confederation. Roumanians are fond of declaring that their country is not a Balkan State, yet if such Confederation were formed it seems difficult to see how Roumania could hold aloof.
Gen. Jacques Lahovary, Roumanian Minister of Foreign Affairs.
It is perhaps premature to talk seriously of such a Confederation. In the various political quarters where I referred to the question, I found that Roumanians considered it at present very difficult of arrangement, and very dubious whether Roumania could ever enter it. Events of the last thirty years have considerably altered the map of Europe, and in each case smaller States have been amalgamated into kingdoms and empires, such as Italy and Germany. The saying of King Corvin that “The kingdom which has not one language is a mad kingdom” is, in our days, no longer true, Austria being an example. The Serbs, the Bulgars, the Greeks, and the Roumanians are widely separated by language and by race. Yet, threatened on the one side by Germany and the other by Austria, they may, in the near future, find it judicious to combine, as the only way of preserving their territory and independence. The difficulties of the problem are, however, many. The Greeks and Bulgars are at drawn swords, the Roumanians and Greeks have broken off diplomatic negotiations, and between the Serbs and Bulgars the feeling is not really so friendly as it should be. At the bottom of all, too, we find the everlasting question of Macedonia, which, in itself, must prevent a Confederation. But if it is ever accomplished, then it will take a high place in the general politics of Europe. Besides, it is improbable that the Confederation could ever be formed without objections being raised by the Powers, and it is very likely a great war might result. In Roumania, therefore, the idea of a Balkan Confederation is not regarded with great favour. The first question of all is Macedonia—ever Macedonia, and “the terrible Greek.”
As regards the internal politics of Roumania, they are not within the scope of this present volume. Both the finance and commerce of the country seem to be in an excellent state notwithstanding the recent dissatisfaction of the peasantry. Thanks to the efforts of M. Jonesco, the finances of the country are now in a thoroughly sound condition, and every day sees greater prosperity. As I found in Servia and in Bulgaria openings for British capital, so there is in Roumania also many openings for British industrial enterprises, especially weaving. The climate is not favourable for cotton-spinning, but for weaving there are many enterprises that would pay good dividends.
In the petroleum wells there have been, since their discovery fifteen years ago, about 150,000,000 francs of foreign capital invested. Greater part of this is German, but there is also a French, Italian, and Dutch element in the various companies exploiting the wells. The Standard Oil Company of America have about 15,000,000 francs invested, but there is no British enterprise. The oil is refined in Roumania, but a good deal of crude oil is sent to France, as well as great quantities of benzine.
From Turn Severin, on the western border of the country, the petroleum zone can be distinctly traced at the foot of the Carpathian Mountains, skirting them in their course through the country towards Bukovina and Galicia on the north-east. Along the whole length of this zone are primitive hand-dug wells, the workings prior to 1873, when the American oilfields were discovered. Since 1895, however, a new stimulus was given to the industry by the modification of the mining laws, and from that date the oil industry has been gradually increasing, and only awaits the introduction of British capital to develop the enormous oil-fields.
It is claimed that the Roumanian petroleum contains 14, 15 and 25 per cent. more pure oil than American, Galician, or Caucasian oils respectively. The total production in 1905 was 602,000 tons, or double the production of four years ago, while the export has nearly doubled in the past two years. The Deutcher and Dresden Banks and the Disconto Gesellschaft have about three million and a half pounds invested in it, while a new company, called the “Trajan,” with a capital of £200,000, has recently been formed, of which Marmorosch, Blank, & Co. of Bucharest, the principal promoters, have taken two-fifths. It will absorb the “Helios” and several other minor companies.
Very large areas of the Roumanian oil-fields are the property of the State, and have hitherto been unworked, but the Minister of Commerce, when I questioned him upon the subject, informed me that a law recently passed by the Chamber provides for the leasing of these lands to private companies, though important provisos are introduced in order to prevent monopolies. The Minister explained to me the chief points of the new laws, and as they may interest British capitalists, I give them. It appears that the Government may now lease for a period of fifty years prospected or unprospected land of maximum areas of 100 and 1000 hectares respectively. The concession is granted to the party offering the highest rent. No more than three lots can be leased to one concessionaire. The capital, which must be at least 2,000,000 francs for every 100 hectare lot of prospected land or 1000 hectares of unprospected land, must be deposited. Amalgamation or assignment is illegal, and any secret fusion involves loss of the concession. The State reserves to itself the exclusive right of working all means of transport for petroleum, and will take a compensation of at least 10 per cent. on the gross profit of the working. Over and above that rent, the State participates in the net profits of the working as follows: (1) one-third should the net profit fluctuate between 10 and 30 per cent.; (2) from 30 and more per cent., the share of the State is 50 per cent. of the net profits. The State levies upon concessionaires a lease-charge of 20 francs per hectare, and in addition the general taxes are to be paid. All concessions are subject to Roumanian laws and regulations, and the State assumes no responsibility for the profitableness of land leased.
These conditions are certainly onerous, yet there is no doubt a big field for British capital in Roumanian oil. The Minister of Commerce impressed upon me this fact, and declared that he would give every facility to intending concessionaires, providing they were properly introduced, and were persons who meant serious business.
In the words of our Consul-General at Galatz, “It is not very easy to account for the apathy of British capitalists in seeking openings in Roumania. Perhaps its position in the remote corner of Europe, and perhaps the difficulties of language have something to do with it.” Anyhow, there is a big future before the oil industry in Roumania, and it is amazing that no one has yet had the courage to try the business under the new conditions. As the Minister pointed out, “The American Standard Oil Company are already firmly established in Roumania. Why should not an English company also work the fields?”
The future, and not a far-distant one, will no doubt see many of the wells exploited by British capital.
In Roumania there are also salt mines sufficient to supply the whole world. The coal deposits are not numerous, but iron and copper are known to exist, though they are not yet exploited.
I had an opportunity of examining the commercial statistics for the present year, not yet published, and they showed on the exports an augmentation on each of the past six years of considerably over 100 million francs. This, in itself, speaks volumes for the prosperity of this the most civilised and progressive nation of the Orient, which has, no doubt, a greater and far more brilliant future before it.
Her Majesty the Queen of Roumania.
