By the fundamental law of the 21st of December 1867 Austria-Hungary was divided, for purposes of internal government, into Cisleithania, or the Austrian empire, and Transleithania, or the kingdoms of Hungary and Croatia-Slavonia.
The monarchy consists of two independent states: the kingdoms and lands represented in the council of the empire (Reichsrat), unofficially called Austria or Cisleithania; and the "lands of St Stephen's Crown," unofficially called Hungary or Transleithania.
Austria also came to see that separation from Hungary would seriously enhance the cost of living in Cisleithania and would deprive Austrian manufacturers of their best market.
From the last-mentioned river are derived the terms Cisleithania and Transleithania, applied to Austria and Hungary respectively.
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