File No. 863.0011/15

The Ambassador in Austria-Hungary (Penfield) to the Secretary of State

No. 147]

Sir: I have the honor to advise you, adverting to the calamitous tragedy in the Imperial family of this realm, communicated to you by cablegram on the day of the assassination,1 that the transfer of the heirship to the thrones of Austria and Hungary has now become a reconciled fact throughout the Monarchy, and official and social life is methodically adjusting itself to the new order of things.

The late Archduke Francis Ferdinand’s strength of character was never so thoroughly appreciated in his lifetime as it now is. And the consensus of opinion, even including that of persons who were not particularly friendly to him, is that a heavy blow was dealt to the future of the realm by the assassins at Sarajevo. The murdered Archduke had had long years of training for the task believed to be before him. He was the practical head of the army, and the moving spirit in the creation of the modern navy. Soldiers and sailors believed in him. His closest friend was the German Kaiser, and he knew well the statesmen and rulers of Europe.

The assassins of the Archduke Francis Ferdinand and the Duchess of Hohenberg have confessed that the plot was matured at Belgrade, and the terrible event which has thrilled Europe is only another illustration of how well justified is the anxiety always present in the minds of European politicians and diplomatists about the unstable conditions prevailing in the Balkans and even in Austria-Hungary itself.

It is noticeable that the quotation of home securities on the Vienna and Budapest bourses has steadily fallen since the day of the tragedy; and this decline in market values is but keeping pace with the slackening of almost all domestic industries. From every quarter of the Monarchy comes news of curtailed activity in practically every branch of industry, and commercial bankruptcies seem to becloud the horizon. Fortunately the crops this year are exceptionally good.

Unfounded rumors of the aged Emperor’s health are heard in Vienna nearly every day, especially in quarters having to do with finance. The popular opinion is that this latest tragedy in the Imperial family has affected the health of the beloved ruler, now in his eighty-fourth year, and that his activities have been lessened in consequence. But in conversation yesterday with the Minister for Foreign Affairs, just returned from a day’s conference at Ischl with the Emperor, I was assured that His Majesty was in better health than for months, that his appetite was that of a robust person, and that he had a grasp on the administration of the Dual Monarchy as clear and forceful as ever.

The new heir to the throne, the Archduke Charles Francis Joseph, has certain talents that are requisite for rulership, and it is predicted that when the time comes for him to take up the responsibilities of continuing the work of his great-uncle he will be found adequate [Page 23] to the task. The criticism that one hears most often is that he is immature and unskilled in dealing with affairs of great importance, and this is largely true. He is in his twenty-seventh year, and the present Emperor came to the throne when he was but eighteen. But, as the Minister for Foreign Affairs said to me yesterday, “It was then a different Austria.” It can be stated authoritatively that the new heir to the throne is to be taken in hand by the Emperor who, with the help of assistants already chosen, will train him for the great work of the future.

Charles Francis Joseph has been thoroughly schooled as a soldier and for years performed his duty as an officer expecting and receiving no favors. When a lieutenant or captain he marched and worked with his men, and it was his wish for his colleagues to regard him only as a comrade. A large part of his military service has been performed at Prague and other Bohemian posts. Until recently Archduke Charles has been a major in the Thirty-ninth Regiment of Infantry, but a few weeks since he was advanced to a lieutenant-colonelcy. He holds honorary rank in the military establishments of Prussia, Saxony and Bavaria. The King of Saxony is his uncle.

Archduke Charles was married in 1911 to the Bourbon Princess Zita of Parma, who is four years his junior. This young lady, almost certain to ascend the thrones of Austria and Hungary as the Emperor-King’s consort, is a superior person in many ways. Her mentality and charm of manner are recognized by all who know her. Her command of languages is equal to that of her husband. Both speak perfect German, French and English, while Italian is the Archduchess’s mother tongue. Their home life is simple and domestic in an unusual degree. They have two children. The elder is a boy, Archduke Francis Joseph Otto, born on the 20th November, 1912. The younger is a girl born in the present year.

I have [etc.]

Frederic C. Penfield