MICRO FICHE 3978
Keywords: Dual Alliance, Austria, Commerce, Turkey, Foreign Relations.
Abstract
During the late nineteenth and early twentieth centuries, Austria-Hungary's export trade to the Ottoman Empire grew. By 1894 the total value of the trade was almost double that of 1881, and in succeeding years even more favorable advances occurred. Moreover, the balance of trade between the two empires was distinctly in the Dual Monarchy's favor, for she exported far more to Turkey than she imported.
This study examines the nature of the trade conducted between Austria-Hungary and the Ottoman Empire during the years 1873 and 1895; analyzes why an increased flow of goods to Turkey occurred by the late nineteenth century; and indicates what achievements in the period 1873-1895 made possible a long-term growth in the years following 1895. An introductory section which discusses the extra-state commercial relations prior to 1873 shows how two long-time enemies came to consider each other as trading partners of some importance. As Austrian industrial output developed in light industrial goods desired by Ottoman customers (such as textiles, ready-made clothes, glassware, hardware, fezzes, bent-wood furniture and by the late 1870's, sugar) and as Austrian shipping capability in the eastern Mediterranean increased in the 1830's following the establishment of the Austrian Lloyd Company, the Habsburg Empire was in a favorable position to advance trade with the Ottoman Empire. The continuing poor state of overland routes from Europe to Turkey in the nineteenth century meant that most foreign trade reached the empire by sea. The geographical proximity of the Dual Monarchy's leading ports, Tieste and Fiume, to Ottoman ports placed the Habsburg Empire in an especially advantageous position to conduct a largely maritime trade relation. Nevertheless, prior to the 1870's even though Habsburg official policy generally encouraged trade with Turkey, the private sector did not always evince similar enthusiasm, and Austrian commerce with Turkey made only limited advances.
In the early 1870's a number of Austro-Hungarians in official positions began to push forcefully for the acquisition of Ottoman markets for Habsburg goods. The founding of the Oriental Museum in Vienna and the publishing of a journal on Oriental affairs were among the steps taken to forward trade to the east. But an economic crisis in the Habsburg Empire evolving out of the Krach of 1873 and Foreign Minister Andrassy's unfriendly Ottoman policy during the Balkan disturbances of the late 1870's worked against the developing commercial plans.
As the Dual Monarchy emerged from the worst effects of the Krach and as production of some light industrial goods, and in particular manufacture of beet sugar, began to make rapid strides in the late 1870's and early 1880's, merchants and industrialists, particularly from the Cisleithanian section became more interested in Turkish markets. Official policy no longer showed much support of the commercial relation, however. The Ballhaus, seeking to reassert friendship with Turkey following Andrassy's departure, knew it could not stress securing larger Ottoman markets without irking the Sultan, Abdul Hamid, who was bent on promoting industrialization and limiting dependence on foreign goods. Annoying the Sultan was something the Dual Monarchy could not afford to do, especially since the machinations of Russia, France and a "palace clique" close to Abdul Hamid often forced Vienna on the defensive in her relations with Constantinople in the latter 1880's. Within Austria-Hungary official restraints to forwarding Ottoman trade were presented by Budapest and by a large agrarian faction in the Cisleithanian parliament, which blocked any of the merchants' and industrialists' proposals for the stimulation of trade to Turkey. Hence, the 1880's marked a period of stagnation and some decline in the flow of exports to Turkey.
Starting in 1890, the various governments in the complex Dual Monarchy structure began to show more concern with Ottoman markets. Many of the earlier requests of the merchants and industrialists were met, enabling Austria-Hungary to send goods to Turkey more quickly and cheaply than other European competitors. Ottoman demand for European goods remained strong because of the limited success of Abdul Hamid's industrialization program. With the Habsburg government and private sector finally working together toward building up commercial ties with the Ottoman Empire, the necessary ingredients for a strong export trade has been found and combined. By 1895, every indication was that Habsburg commerce would reflect an upward growth. Statistics show this to be the case. Whereas in the early 1880's 3.1 per cent of Habsburg annual total export trade was directed to Turkey, by 1910 5.6 per cent was.
A corollary theme in this dissertation is that the multi-national composition of the Habsburg Empire had a restraining influence on the development of commercial relations. Many of those involved in the empire's industry, shipping and marketing were Bohemian Germans and Italians. In the 1880's these two groups were frequently ignored or distrusted by central authorities, and their interests were overlooked. The nationality conflict further hindered Austro-Hungarian commercial involvement with Turkey because Hungary lacked interest in any common effort to promote the Dual Monarchy's trade to the southeast.
Both unpublished and published primary material were used in researching this study. Unpublished documentary evidence was drawn from the Politsche Archiv and Administrative Registratur sections of the Haus-, Hof-, und Staatsarchiv in Vienna. Published sources consulted included: - the commercial and consular reports of Great Britain and Austro-Hungary; three leading commercial journals of the Habsburg Empire--Osterreichische Monatsschrift fur den Orient, Das Handels Museum and Commercielle Berichte; the Austrian parliamentary debates; and printed excerpts from Austro-Hungarian parliamentary debates; and printed excerpts from Austro-Hungarian chamber of commerce reports.
October 3, 2007
