File No. 763.72/6

The Vice Consul General at Budapest ( Mallett ) to the Secretary of State

The impression prevails at present in Budapest that a war between Austria-Hungary and Servia is unavoidable, and that hostilities will begin soon after the crops are harvested.

Although the Budapest newspapers have been forbidden by the military authorities to publish any news in regard to mobilization, it is known nevertheless to quite a number of persons in Budapest that two or three army corps are being mobilized at present near the Servian frontier in Hungary and in Bosnia.

The newspapers have also been forbidden to publish anything in regard to a military cordon, which will be established along the frontier between Servia and Austria-Hungary. The purpose of this military cordon is to prevent desertions of Servians who are in the Austro-Hungarian Army and to prevent the entrance into Bosnia of Servians. The Hungarian Minister of War has issued an order forbidding the sale of horses to Servians or to any foreigners.

F. E. Mallett