Composed of two equal parts, this new country saw the beginnings of the modern state, such as the modernization and organizaiton of the judicial system, administrative and educational reforms, and the rise of capitalism. By the end of 1890 the western European legal system is introduced and a bourgeoisie state is erected. By the end of the 1800s internal and international stability has eroded, resulting in naitonal discontent. The assassination of Archduke Franz Ferdinand precipitates the beginning of World War I, when Austria-Hungary declared war on Serbia. The dissolution of the Dualist Monarchy results from Hungary's adoption of Woodrow Wilson's Fourteen Points as a condition for armistice. Having lost the war, Hungary descended into revolution from 1918-1919. The country was declared the Hungarian People's Republic on 16 November 1918, and was attacked by Romania on 16 April 1919. Once occupied, a regime of terror ensued until a new coalition government was elected in 1920 under regent Admiral Miklós Horthy. The 4 June 1920 Treaty of Triannon relieved Hungary of 70% of its territory and 60% of its population. Needless to say, the Hungarians felt this to be a tragedy.
