THE AUSTRIAN ULTIMATUM.--On July 23, the Austro-Hungarian government
sent a note to the government of Serbia holding her accountable for the
Serajevo murder and making a number of humiliating demands. Serbia was
told she must suppress all newspapers inciting enmity to Austria, that
she must dissolve all societies that were working toward "Pan-Serbism,"
that she must dismiss from the Serbian public service all officials whom
the Austrian government should officially accuse of plotting against
Austria, that she must accept the help of Austrian officials in Serbia
in the putting down of anti-Austrian activities and in searching out
accessories to the plot of June 28, that she must arrest two Serbian
officials who had been implicated by the trial in Serajevo, and that she
must put a stop to the smuggling of arms from Serbia into Austria.

The demand that Serbia admit Austrian officials into Serbia to take part
in the work of investigation and suppression was an intolerable invasion
of Serbia's sovereignty within her own borders. But the most threatening
part of the note was its conclusion: "The Austro-Hungarian government
expects the reply of the royal [Serbian] government at the latest by 6
o'clock on Saturday evening, the 25th of July." In other words, the note
was an ultimatum giving Serbia a period of only forty-eight hours in
which to agree to the Austrian demands.

SERBIA'S REPLY.--Serbia's answer to the Austrian ultimatum was
delivered within a few minutes of the time set. She agreed, practically,
to all the Austrian demands except those which required that Austrian
officials should conduct investigations and suppress conspiracies in
Serbia, and she even went part way toward accepting those. Serbia went
on to suggest that if Austria was not entirely satisfied with the reply,
the points still in dispute should be referred to the international