Note (Back) — Chapter XXVII

561. The Ausgleich.—The unique political relation which subsists to-day between the Empire of Austria and the kingdom of Hungary rests upon the Ausgleich, or Compromise, of 1867, supplemented at certain points by agreements of more recent date. The fundamental terms of the arrangement, worked out by the Emperor Francis Joseph, Deák, and Baron Beust, were incorporated in essentially identical statutes enacted by the Hungarian Parliament and the Austrian Reichsrath December 21 and 24 of the year mentioned. Between the demand of Hungary, on the one hand, for independence (save only in respect to the crown), and that of Austria, on the other, for the thoroughgoing subordination of the Hungarian to an Imperial ministry, there was devised a compromise whose ruling principle is that of dualism rather than that of either absolute unity or subordination. Under the name Austria-Hungary there was established a novel type of state consisting of an empire and a kingdom, each of which, retaining its identity unimpaired, stands in law upon a plane of complete equality with the other. Each has its own constitution, its own parliament, its own ministry, its own administration, its own courts. Yet the two have but one sovereign and one flag, and within certain large and important fields the governmental machinery and public policy of the two are maintained in common. The laws which comprise the basis of the arrangement are the product of international compact. They provide no means by which they may be amended, and they can be amended only in the manner in which they were adopted, i.e., by international agreement supplemented by reciprocal parliamentary enactment.[710]