He believed that with such a Cabinet it would be easier to arrive at a peace of mutual understanding, and was also resolved to render possible such a peace by extensive concessions, especially by giving his diplomatic support in the Bessarabian question.

He informed Marghiloman also in writing that he would be prepared to grant important concessions to a Cabinet of which he, Marghiloman, was the head, in particular as regards the cession of inhabited places such as Turnu-Severin and Ocna, on which points he was willing to give way.

When the Marghiloman Cabinet was formed the Austro-Hungarian demands in respect of the frontier line would, despite active opposition on the part of the Hungarian Government, be reduced almost by half.

The negotiations with Roumania were particularly difficult in regard to the question of two places, Azuga and Busteni.

On March 24 Count Czernin prepared to terminate these negotiations, declaring that he was ready to renounce all claim to Azuga and Busteni and halve his demands as to the much-debated Lotru district, provided Marghiloman were willing to arrange the frontier question on this basis.