NUFACTURES. Since no duties Van he col lected upon the imports from Austria. the Hun garian manufacturing industries must compete with the long-established and highly developed Austrian industries; hut in spite of this. much progress has been recently made. The Govern meat has sought to encourage industries by fa \ orable legislation, such as exemption from tax ation. :Most of the industries are bcing thor oughly modernized—coneent rated 1111414.1• large p1:1111S, 16111 improved machinery. The leading industries are Mhos w1iic11 111:111, their ,111111111`h 111e abundant agricultural prod uct, ot the •ountry—llour-inilling, brev.ing and oistilling, sugar and lobo. eh iron products, clothing. and many less important item, rue al-o included among I Ile HM11111110 of t he large establishments are centred in blida pest.
TILVNsPOItT.VtloN AND CoNINII:Itel:. I n respect to railway mileage. Hungary \yin compare favor ably With European countries. Including Croatia and SlaV011ia, there were in 1899 10,500 miles of railv.ay lines, about four-fifths of which were owned by the State, while the greater part of the by the State. Hungary has the distinction of honing first ap plied the •zone-taritr system to its railroads. The Danube and its tributaries afford extensive facilities for water transportation. The navi gation of some of the rivers, notably the Theiss, has been greatly improved through the shorten ing of the course by means of numerous cuts. The limited coast-line tends to restrict the coun try's participation in the seagoing trade. The principal port. however. Fiume, is rapidly grow ing in importance. 111/(1 11 subvention is granted to Hungarian vessels registering in this port, the number of whieli is rapidly increasing. Over
tlirce-fourths of the are from Austria, which takes n not much smaller proportion of the exports. This arises fromi the fact that the two countries are mutually complementary in respect, to their products. and that trade between them is flee, whereas there is a tariff barrier to the trade with other I:rain. cattle, and other farm produets pass from Hungary to .11istria in return for manufacture41 products, prineipally textiles. Gerninny occupies a second place in the trade with Hungary.
I:oVEl1N3.11.NT. The Emperor of Austria is King of Hungary. The foreign and military and naval of the .1ustro-Ilungarinn M01111relly fire conducted jointly by Austria (Cisleithania) and Hungary (•ransleithania) through the medium of common ministries (including a ministry for the common finances) and the so-called Delega tions representing the separate halves of the :Monarchy. The crownland of Croatia-Slavonia enjoys autonomy in local affairs. having its own Diet and ils own )tan or Governor. It is, how ever. also represented in the Hungarian Diet. ?ince Isil7 Transylvania has been on integral part of Hungary. ln the national lilting:Irian Parliament the :Magyar interests are predomi nant, and the :Nlagyar language is official through out Hungary proper. being obligatory in schools, et•. Croatia and Slavonia are allowed the offi eial use Of their native language. A full exposi tion of the government and the educational sys tem, and a statement of finances, will be found in the article .AUST111.1-111'NGARY.