Object : The report of the Minister of Finance to the Counsel of Ministers on the situation of Roumania created by the reparation and interallied debts policy

Dardanelles  for  her  export,  placed  her  in  the  difficult  alternative  either  of
stifling  herself  economically,  or  of  opening  the  gates  of  her  Western  frontiers
for  the  enemy’s  supplies,  of  which  they  were  in  so  great  a  need  that  they  made
the  most  tempting  offers,  accompanied  by  threats,  which  at  that  time  might
have  scared  a  much  more  powerful  State.
Roumania  prefered  the  first  alternative  of  economical  suffocation,  to  helping ­
  the  enemy,  even  indirectly.
The  continual  struggle  that  Roumania  carried  on  during  the  whole  time
of  the  neutrality,  against  the  attempts  for  carrying  products  out  of  the  country
by  smuggling,  is  the  best  proof  of  this  delicate  situation.  At  the  risk  of  her
economical  ruin,  Roumania  refused  firmly  the  enemy’s  offers  for  buying,  and
only  when  se  was  obliged  to  put  off  for  some  time  entering  the  war,  with  the
assent  of  the  allies  did  she  agree  to  conclude  a  contract  for  the  supply  of  cereals.
It  was  only  thanks  to  this  contract,  concluded  with  the  Central  Powers,
that  an  attack  on  the  part  of  our  future  enemies,  who  intended  to  use  even
force,  for  supplying  themselves  in  our  country,  was  avoided.
At  the  same  time  in  order  to  annihilate  the  effects  of  this  contract,  and  to
prevmt  supplying  the  enemy,  the  Roumanian  Government  concluded  a  similar
contract  with  Great  Britain  (Annex  9).
In  the  chapter  referring  to  this  matter,  we  will  treat  about  this  Britannic
contract,  we  shall  see  how  in  the  end  it  could  not  have  the  expected  effect  of
helping  Roumania,  although  it  was  very  efficacious  -for  preventing  the  supply
of  the  enemy.
At  the  same  time,  in  order  to  oppose  their  threats  and  to  prevent  the  Central ­
  Powers  from  opening  a  route  towards  Turkey,  Roumania  concentrated ­
  numerous  troops  along  her  threatened  frontiers  ever  since  the  beginning ­
  of  the  neutrality 1 )  troops  winch  cost  important  sums  to  maintain 2 ).
This  attitude  obliged  the  Central  Powers  to  mobilize  on  the  Roumanian
frontier  a  considerable  number  of  troops,  either  for  the  object  of  exercising  a
pressure  on  Roumania,  or  for  defending  themselves  against  an  attack  on  her
part 3 ).
Roumania’s  geographical  situation,  cut  off  from  her  allies,  laid  on  her  expenses, ­
  which  no  other  State  had  to  face,  as  all  her  supplies  and  the  means  for
her  future  action  where  procured  only  from  the  Allies  in  very  difficult  conditions ­
  of  transport  and  insecurity,  which  increased  the  expenses.  The  Dardanei-1)

  Roumania  concentrated  by  series  for  periods  of  from  t—18  months,  the  whole  effective  forces  which
could  be  mobilized,  of  her  army,  amounting  to‘810.000  soldiers.  Thus  the  i  umber  of  men  concentrated  increa
sed.  so  that  on  the  day  war  was  declared,  there  were  I  So  000  men  on  the  Carpathian  frontier,  UO.tiOO  on  the
South  frontier,  and  in  the  interior  the  rest  of  the  troops  a"d  the  auxiliary  services.
2 )  Roumania  contracted  in  this  interval,  for  keeping  up  her  troops,  and  preparing  them  for  war,  four
loans  of  100.000.000  lei  each  at  the  National  Bank,  a  consolidated  loan  of  4(10.0(10.000  lei  on  the  internal  market,
land  other  loans  abroad,  which  will  be  mentioned  in  their  details,  in  part.  II  -Into  allies  debts*  —  Out  of  this
oan  of  400.000.000  lei,  contracted  on  the  internal  market,  the  Roumanian  Government  paid  the  debt  contracted
at  the  National  Bank,  so  that  on  .tune  I  (»->>>  1916,  the  debt  of  the  State  at  the  Issue  Rank  amounted  to  lei
3 )  On  the  South  frontier  of  Roumania,  Bulgaria,  mobilized,  during  the  period  from  1914—1916,.
the  III  rd  army  corps  with  3  divisions,  besides  a  part  of  the  tOH 1  German  division.
            
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