Paris Peace Conf. 184.01102/32

Lieutenant Colonel Sherman Miles to Professor A. C. Coolidge 27

Report No. 1

Report on conditions in Slovenia (Yugo-Slavia).

General situation.

1. The outstanding interest of the government and people of Slovenia is in the question of the new frontiers, especially the Italian-Jugoslav frontier. This was impressed on me by the Slovenian Provisional President when I was presented to him at a meeting of the government authorities (Jan. 13th), and has been the leading topic of everyone I have met since then.

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2. The cardinal point in the frontier question, in their minds, is Trieste. They want Trieste, and do not mean to give it up if urgent representation of their case, and propaganda, can save it.

3. I can discover here no rift in the Yugo-Slav unity. The Slovenes seem to take it as a matter of course that the union will be consolidated and preserved. What political opposition exists to the principles of the Declaration of Corfu seems to take the form of preferring a republican to a monarchical form of government, but not the form of opposing in any way the close union of the Serbs, Croats and Slovenes. External conditions now existing constrain all parties to lean on the strength of the Serbian Government. Questions of “States Rights”, of proportional representation between the different peoples, and their mutual jealousies are not so far in evidence. To what extent this is brought about by the external pressure of the Italian occupation of part of their territory, and by the grasping aspiration of all their neighbors, it is impossible to say; but it is certain that at this moment the Slovenes are looking out and not in—and looking especially at the Italians.

4. For the rest, the general situation presents no very salient points. The Serbs are in occupation of the region with about 2,000 of their own men and about 6,000 Slovene troops. The people are quiet. In Laibach and the surrounding country there is sufficient food, although I am told that there is little in reserve. Excellent meals are served in the hotels at an average price of 25 kronen a plate. Eggs, bread, sugar, cakes, spirits and meats are to be had at the hotels. Ration cards are supposed to be issued, but the system has broken down, and I have seen none in use. There is very little begging on the streets. There is no proportionally large number of unemployed, and no apparent discontent.

Frontier Question.

. . . . . . .

6. The crux of the Slovene aspiration is Trieste or rather Trieste and the railroad junction of Villach (110 kilometers to the north). They base their claim to Trieste on several grounds, historical, national, economic, geographic, etc. The essence of their claim, and by far their strongest point, is that the entire hinterland, beginning even with the outlying districts of the city, is Slovene. Trieste is, they say, merely a small Italian commercial foothold in a Slovene land. They admit that the majority of the population of the city is Italian, but claim that the latter have to a large extent been artificially introduced, and they contest the population proportion given in the Austrian census of 1910 as having been established by Austrian officials of Italian birth or tendencies. On the economic and geographical side, they point out that Italy does not need Trieste, having many good [Page 470] ports of her own. Fiume, on the other hand, will not do for the Jugo-Slavs as a substitute for Trieste, because it is an open roadstead, very difficult to make into a good harbor, as the shore shelves off into deep water close to the beach; and also because the entire coast line of the Gulf of Fiume is swept by “bora” at certain seasons of the year. Trieste, on the contrary, is an improved and excellent harbor.

7. The question of the railroad junction of Villach seems to resolve itself into this—Villach is a junction of 5 single line railroads, the two northern ones running to Bavaria and German-Austria. The Jugo-Slavs claim that if the Italians hold Villach they can cut off the Slovene port of Trieste from the Bavarian and Austrian trade routes. This argument is sound for the Bavarian trade route, but hardly so for the Austrian. What they do not say, but what is obvious, is that, with both Trieste and Villach in Jugo-Slav hands, Italian competition for through Austrian trade would labor under great disadvantage. The relationship of Villach to Trieste can, I think, be expressed in this way—

(1)
If Trieste is Slovene,
(a)
and Villach is Slovene: Italian through trade with Austria is put under heavy disadvantage.
(b)
and Villach is Italian: Slovene through trade with Bavaria is penalized, and possibly killed.
(2)
If Trieste is Italian,
(a)
and Villach is Italian: Slovene through trade with Bavaria is killed, and Slovene through trade with Austria is penalized.
(b)
and Villach is Slovene: Trieste would be so shut in that it could not live as a port.

8. While emphasizing the economic side of the Villach Question, the Slovenes also insist that the Villach region is racially Slovene, as shown by the Austrian census of 1910, and that there are no Italians near there.

9. As to Villach going to the Austrians, the Slovene contention is that the same situation would arise as if it were Italian. This contention is based on the strong Slovene conviction that the Germans (including the Austrians) and Italians are coming together after the war, at least economically and commercially. This conviction colors a great deal of their ideas about the frontier question, and leads them to regard the Italians and Germans as a potentially united enemy. They claim, as an example, that the bands of Austro-Germans now operating in Carinthia are armed by the Italians.

10. As to the peninsula of Istria, they say little, since the Slavs there are mostly Croats and not Slovenes; but the general contention is that the Italians live only in the coast towns, and that the peninsula is almost entirely Jugo-Slav.

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11. The northern Slovene border, running through the provinces of Carinthia and Styria, is drawn by the Slovenes largely on the racial basis, though in some places, notably north of Villach and Radkersburg, they push the boundary somewhat to the north, on economic grounds, claiming that they must include territory economically dependent on the Slovene valleys to the immediate south.

12. It is significant that in the many talks I have had with Slovene authorities they have never mentioned the “corridor” running up to Czecho-Slovakia, in spite of the fact that this corridor is supposed to connect their country with the latter. When I asked them about the project, they showed little real interest in it, and their unspoken attitude seems to be that it is a matter which concerns the people without a sea-coast (the Czecho-Slovaks), and they propose to let the latter do the worrying.

13. The last point to be noted about the proposed Slovene frontier is their claim to a corner of old Italy (Italy of 1914), north and east of the town of Cividale. This claim is based on racial grounds. The Slovenes admit that the land claimed is economically dependent on the Italian centers in the lower valleys, and the claim is probably advanced for bargaining purposes only.

14. Of the two frontiers, Austrian and Italian, the Slovenes emphasize the latter, not only because it touches on land more important to them, but also because they are more incensed by the Italian attitude towards them than by the Austrian. The present difficulties with Austria, in Carinthia, they regard as a matter of minor warfare, carried on by more or less irresponsible bands of ex-Austrian soldiers and Bolsheviki. Though they think these bands are being recruited from Vienna, they are more disturbed by the report (which they believe) that they are being armed by the Italians. Against the Italian occupation of Istria and western Slovenia they have numerous complaints. They object in principle to the Italian occupation of the line of demarcation of the Treaty of London (1915)28 on the grounds that they (the Slovenes) were then a subject people of the Hapsburgs, and had no voice in the matter. They state that the Italians have issued a proclamation requiring all ex-Austrian soldiers (including, of course, the Slovenes) now in Italy or in the territory occupied by Italian troops, to enter the Italian Army. They complain of all sorts of Italian subterfuges, repressions and requisitions in the occupied territory, and sum it up by saying that the Italian attitude towards the Slovenes is that of an active enemy.

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Government.

15. Under the Austrian regime, the Slovene, Croatian and Dalmatian deputies to the Viennese Reichsrat were elected by a liberal suffrage of the people. These deputies formed a Jugo-Slav club in Vienna. When the Austrian debacle came this club united itself to the Croatian Parliament in Agram, and formed the Jugo-Slav Provisional Government. The latter appointed the Provisional Slovene Government, consisting [of] a president (Mr. Josef Pogacnik) and 12 “commissioners”. The large majority of this government are men who have been deputies in the Viennese Reichsrat or the local assemblies, and it is therefore very representative.

16. According to a very recent agreement made in Belgrade, the Slovene Provisional Government will be reduced to 7 Commissioners—the President and two representatives from each of the three political parties (see below). This reorganization will take place shortly.

17. There are in Slovenia three political parties—(1) the People’s, or Clerical, Party, which is conservative, and which is so far much the strongest as it consists largely of the agricultural population; (2) The Liberal Party, which so far has had but one deputy in Vienna; and (3) the Social-Democrat Party, which has not yet attained any considerable power.

18. The only point to be noted about party politics in Slovenia is that the matter is now completely in abeyance. Political interest is centered in the establishment of the frontier, and the Provisional Government seems to satisfy the political needs of the moment.

19. The local mayors and magistrates are continuing to function, and the police power is exercised through the military.

Military Situation.

20. The military force of Slovenia consists of about 2,000 Serbian troops and about 6,000 hastily raised Slovene troops. The whole force is under a Serbian general, Smiljanic, and is officered by Serbian officers or Slovene (ex-Austrian) officers in Serbian uniforms. The government states that they have only about 4,000 rifles and some 24 cannon in all, and very little ammunition. They have fallen heir to some Austrian equipment (at least one aeroplane), but claim that the Italians got most of it by their occupation.

21. Roughly speaking, the 8,000 men are divided as follows—2,000 on the Styrian front, 4,000 on the Carinthian and 2,000 on the Italian. But these figures include all men garrisoning the country, policing the towns and otherwise in the rear.

22. The whole military organization is very hasty and irregular.

23. The fighting which has been going on in Carinthia, up to the truce of January 14th, was apparently very irregular sort of work conducted by small bands.

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Internal and Economic Conditions.

24. There are no internal questions in Slovenia in any way in the foreground at the present time. This is the salient point—that there are potential questions of politics and economics, but that they are in abeyance pending the frontier settlement, and nothing but a food shortage is likely to bring them to the front.

25. The country is largely agricultural. From what one can judge by driving through a small part of it in a motor, by the food one gets in the country and in this town, and by the general look of both villages and towns, there is no shortage of food at present, and the people are as contented as could be expected under actual conditions. Their mental attitude seems to be one of rejoicing over new-found liberty, and the one rift in their cloud of happiness is the compression on the Italian and Austrian frontiers.

26. Prices have, of course, gone up. Flour which sold before the war at 40 hellers a Kilo now brings from 15 to 20 kronen. But the Slovene government sets aside 800,000 kronen a month to purchase flour so that it may be re-sold at moderate prices to the poor. The fact that a large number of excellent shops keep open in Laibach is an indication that there is considerable money in circulation.

27. The Commissioner for Social Welfare states that there are about 10,000 unemployed laborers in the country (a fraction of one per cent of the population). Beginning January 1st, these men have been paid by the state at the rate of two and a half kronen a day, plus one kronen a day for a wife or child. This, it is estimated, will cost the state about 300,000 kronen a month.

28. There are also about 7,000 refugees (including 580 orphan children) from the Italian and Austrian occupations.

29. Bolshevism might be a serious problem in Slovenia in case of a famine, but hardly under any other circumstances at the present time. The doctrine is being introduced into the country (though not to any large extent) by returned prisoners from Russia and by sailors. There is no discernible propaganda coming in from the Bolsheviki government in Russia. The agricultural population and the strong hold of the Catholic Church in Slovenia are conservative barriers against Bolshevism. Not only is the Church strong through the religious nature of the people, but the priesthood is said to be very good and the Archbishop of Laibach an exceptional man.

30. The economic situation is rendered difficult by the Italian occupation and the Austrian pressure. Both the Italian and the Austrian frontiers are practically closed to the Slovenes. The most earnest complaint is made against the Italians’ occupation as a blockade cutting off the country. What manufactories exist here lack lubricating oils, special kinds of coal and raw materials.

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31. Still, the basic fact is that the country is agricultural, and has, for the present at least, sufficient seed, labor and live stock. Damaging and unjust as may be the Italian and Austrian blockades, they do not appear to influence seriously the economic situation at present.

Monetary Situation.

32. The situation is this—There are three forms of paper currency in circulation in Jugo-Slavia at present,—the Austrian kronen, the Roumanian lei and the Serbian dinar. The Jugo-Slav government naturally wants to establish a national monetary system, based on one unit, as soon as possible. They do not consider it advisable to accomplish this immediately, but they do consider it necessary to take the first steps at once. These are the determination of the amount of paper kronen and lei now in circulation in the country, and the prevention of any further flooding of Jugo-Slavia by this currency.

33. Since the Austrian kronen (and I presume the Roumanian lei) are very much inflated beyond what their gold reserve should support; since the Jugo-slav government cannot well avoid eventual assumption of so much of this paper as is now in the hands of their own people; and since, finally, the foreign exchange of Jugo-slavian currency will be directly affected by the amount of inflated paper it carries, the present move of the government to determine that amount and to prevent its being increased appears sound.

34. The means employed by the government to determine the amount has been the monetary decree referred to in my telegram of January 13th.* The stamping of the kronen and lei is being done by banks and commissions.

35. As the stamps used for this purpose can be easily counterfeited, they will probably issue Jugo-slav currency in exchange for the stamped paper as soon as the total amount of the latter now in the country has been determined. The stamped paper will simultaneously be called in and eliminated. The provisional currency will be used in the country until it is converted into Serbian dinars at the rate of exchange established at the time of conversion. Thus the dinar will eventually be the monetary unit for all of Jugo-Slavia.

36. The Provisional President of the Slovenian Government told me (January 13th) that he did not believe any further steps were contemplated before the peace settlement. Later information (contained in the foregoing paragraph) indicates, however, that this statement was not intended to mean that the stamped kronen and lei are to be used as currency for any length of time (for reasons given above).

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37. The general impression here is that they must go slowly in this matter, and only take the steps which are immediately necessary at this time. But of course the final decision on all these points rests with the Central Government in Belgrade, and no one here is in a position to make a binding statement.

Calendar.

38. The adoption of the Gregorian calendar by the Serbians is expected soon. It will probably not be made until after St. Siva’s day (January 14th), for religious reasons.

Attitude towards the United States.

39. In every way, both by word and deed, the government and the people emphasize their almost pathetic confidence in the United States as their champion at Paris. They constantly refer to President Wilson and his doctrines, and believe that their national claims and their national security, like those of other small states, can only be gained if these doctrines are accepted and carried out as the basis of the peace settlement.

Sherman Miles
  1. Transmitted to the Commission by Professor Coolidge under covering letter No. 37, January 22.
  2. Great Britain, Cmd. 671, Misc. No. 7 (1920): Agreement Between France, Russia, Great Britain and Italy, Signed at London, April 26, 1915; a translation from the Izvestia which was transmitted to the Department by the Ambassador in Russia on December 5, 1917, is printed in Foreign Relations, 1917, supp. 2, vol. i, p. 497.
  3. See “Annex E”, attached, an English translation of this decree. [Footnote in the original; annex E and telegram of January 13 not found in Department files.]