File No. 763.72/73
The Vice Consul General at Budapest (Mallett) to the Secretary of State
Budapest, August 2, 1914, 2 p.m.
[Received August 3, 9 a.m.]
[Telegram]
Entire Austro-Hungarian Army, seventeen corps, mobilized. Hostilities have commenced against Servia energetically and extensively. [?] bridge partially destroyed. Pontoons are being sent to [?]. Servia opposes unexpectedly stubborn resistance. No progress by Austro-Hungarian Army. No hopes are entertained for localization of conflict. French, Russian, and Roumanian Consuls General to Hungary inform me confidentially that they have been instructed that they should be [ready?] to depart from Hungary at short notice. Prices of commodities advanced by 50 per cent. [Moratorium?] instituted in banking and commerce. Bank interest 10 per cent. All passenger transportation suspended. Situation extremely bad.