Holy Roman Empire

Chapter 426: Ripped Off

As a good neighbor, Franz has been closely following the civil war in Russia from Vienna. Looking at the intelligence he has gathered, he knows that the Russian government is about to make concessions.

To maintain domestic stability, Alexander II held back from launching an offensive. As a result, the rebels have snowballed and are now threatening the Russian government’s rule.

At this point, any shrewd monarch would choose to maintain their own rule first. Alexander II must end the war first before he could carry out internal purges and use political means to dismantle the rebels.

Even cornered dogs will bite. Launching an offensive before the war is over, these parasites will probably collude with the Kingdom of Prussia and they might even lose St. Petersburg as a result.

To confuse these people, Alexander II has already executed a few scapegoats, making it look like things are over.

This muddling approach, apart from delaying time, actually does nothing. For a country, such a compromise is slow suicide.

Franz had interacted with Alexander II and knew very well that he was no mediocre monarch. As early as Nicholas I’s time, Alexander II proposed social reforms.

Unfortunately, Nicholas I had already pushed through a round of reforms, which ultimately failed. In his later years, Nicholas I lacked the courage to take drastic action and was afraid to break ties with domestic interest groups.

By the time Alexander II ascended to the throne, the difficulty of reform had increased significantly. He lacked the prestige of Nicholas I and was unable to subdue the various domestic factions.

The comprehensive social reforms were scaled back to limited social reforms, and Alexander II adopted a gradual approach to pushing social changes, following the same path as in the original timeline.

At a critical moment, the Polish uprising broke out, followed by the Prusso-Danish War, challenging the hegemony of the Russian Empire.

To maintain the empire’s hegemony, Alexander II was forced to wage war. The war resulted in defeat, exacerbating domestic social contradictions and leading to the current situation.

Franz made a quick decision, “Prime Minister, urge the Prussian government to fulfill the conditions, otherwise, we will not let them have anything!”

This was political blackmail, and the negotiations reached a deadlock. The Prussian government was also in a panic. In these few months, the Russian government had armed hundreds of thousands more troops.

Another war? The Prussians were very worried. The war had caused them great losses thus far, and if they had another head-on clash with the Russians, even if they won, they would still lose.

If they don’t have the strength, even if they annex large swathes of land from the Russians, they won’t be able to digest it!

The Junker nobles are also discerning people and know that the current Kingdom of Prussia cannot afford any more failures. France and Austria are still watching closely, and the reason they haven’t made a move is that they still have the strength to fight back.

No matter who strikes first, it will benefit the other side. In addition to the severity of the international situation, both France and Austria are worried that if they enter the game first, they will be ambushed.

In the face of interests, alliances are not much more effective than wastepaper. If you get tricked, where can you go to cry?

This created an opportunity for Austria to blackmail Prussia. Prussia only knew Russia’s stance remained tough, unaware the Russian government was preparing to compromise. Yet the Prussian government dared not let the war continue.

“Yes, Your Majesty!” Prime Minister Felix replied.

…

Plans can never keep up with changes. Upon receiving the diplomatic note from the Austrian government, the Prussian government was not at all flustered.

The two sides immediately began discussing the terms. Prussian Foreign Minister Mackeit questioned, “Sir Robson, you are well aware of the situation in Silesia and Prussian Saxony. How can you possibly expect to acquire them for fifty million guilders?

As far as I know, the treaty you signed with the Russians stipulated a price of fifty million guilders for Prussian Saxony alone. And that was for a high-risk loan! Surely it cannot be lower than that now!

Our price for Prussian Saxony and Silesia is 120 million guilders and it’s non-negotiable. It’s a fair price for what you’re getting.”

“Austrian envoy to Berlin, Robson, explained calmly, “Foreign Minister, the calculation cannot be done in this way. First of all, Silesia was agreed upon before the war, so no further payment is required.

This transaction is only for Prussian Saxony. You must understand that in addition to money, our political concessions should also be included in the transaction.

Your country wants to acquire the duchies of Schleswig and Holstein, Lithuania, Latvia, and most of Belarus. With so many places added together, your country’s territory has increased by three-quarters.

Achieving these goals is a challenging feat. For one, the French support the Poles’ access to the sea in Lithuania, while the British stance is also ambiguous. f you don’t want to end up with another isolated territory..”

Having an isolated territory is a troubling issue. Just having one in the Rhineland, under the watchful eyes of the French, is enough to keep the Prussian government up at night. Adding another one under the eyes of the Russians would make life unbearable.

Once the Poles gain access to the sea in Lithuania, the Belarusian and Latvian regions that Prussia desired would become isolated. The defense pressure this would create is enough to make them collapse.

Not only are they threatened by the Russians, but even the Poles pose a threat to their power. With their strength scattered, how could they annex Poland and create a Greater Prussian Empire?

Weakening Prussia and strengthening Poland is in the best interests of the French. It not only creates conditions for them to annex the Rhineland but also supports a pawn to contain Austria.

For the British, both are underlings, and it is not good to favor either one. The adept John Bull, skilled at diplomatic maneuvering, naturally would not rashly take a stand.

Prussian Foreign Minister Mackeit retorted, “Sir Robson, a strong Poland is not a good thing for your country either. Polish nationalists are always thinking about Austrian Poland!”

Envoy Robson said, “Sir Mackeit, you overestimate the Poles. There has never been an Austrian Poland, and the local people do not consider themselves Poles.

A newly formed Poland would not dare to challenge Austria. If they do, they will soon become history again. A few slogans cannot bridge the gap in strength.”

In this regard, the Austrian government is confident. Twenty years ago, when the Polish nobles in Galicia attempted to declare independence, they were suppressed by the local populace.

After so many years of assimilation, all traces of Poland have long been erased. The locals all consider themselves Austrians now.

Those who still retain Polish traditions have become a very small minority. Just look at the Austrian government’s ethnic census data, and you can see that the number of Poles in the country has dropped to less than a million.

The decline in the Polish population is not due to their disappearance, but mainly to assimilation. The younger generation does not identify as Polish, so the number of Poles has naturally decreased sharply.

Austrian nationality is not defined by bloodline. After so many years of development, there are a lot of mixed-race people, and it is impossible to tell them apart.

Instead, it is based on a combination of factors such as language, customs, and the people’s self-identification with a particular nation.

In this regard, Prussia and Austria have similar policies, both promoting Germanization. Both sides have achieved good results, but Austria has gone a step further: those who do not learn the common language cannot find work.

Of course, Poland’s regaining of independence would still have an impact on Austria’s assimilation efforts, but the Austrian government was also prepared.

Franz was also a believer in freedom, so if they wanted to be Polish, they could just go back to Poland. Austria was not short of a few hundred thousand people.

Expelling millions was difficult for other nations but no issue for Austria. Any protests or unrest would simply get the troublemakers expelled too.

Poland’s threat lies within, not without. The military balance of power clearly indicates that Poland poses no military threat to Austria. Internal issues, if dealt with decisively, are not that much of a threat.

Austria can afford to ignore these issues, but not Mackeit. Prussia is still very much interested in Poland, and Polish nationalism cannot scare the Prussian government.

In a way, the Junker nobility is their nemesis. East Prussia and West Prussia are examples of this, where a group of Junker nobles suppressed the local population and did an excellent job of ethnic integration.

This success has boosted the confidence of the Prussian government. No matter how much the outside world criticizes the backwardness of the feudal nobility system, this system is indeed very effective in maintaining local stability.

…

After a round of bargaining, the Austrian envoy to Berlin, Robson, and Prussian Foreign Minister Mackeit signed the Austro-Prussian Land Transaction Agreement on August 11, 1867.

The treaty consisted of a single clause: the Kingdom of Prussia would sell Silesia and Prussian Saxony to Austria for 38 million guilders.

Note: After the signing of the treaty, the Kingdom of Prussia would complete the handover to Austria within two years of receiving the payment. Austria would also need to pay an additional 10 million guilders in relocation costs.

Undoubtedly, other additional conditions were kept hidden, and both parties tacitly avoided mentioning them.

In Vienna, upon seeing the signed treaty, Franz found it hard to believe. He had the impression that Prussia was eager to finalize the agreement and showed no signs of resistance.

The only issue was the lengthy handover period demanded by the Prussians. However, this was not a major concern either. The Kingdom of Prussia would not be able to fully recover within a mere two years, and it lacked the strength to renege on its debt.

Moreover, the Prussian government provided a reasonable explanation, stating that they needed time to withdraw their investments. Unless Austria was willing to pay additionally to acquire those assets, they had to be given time to buffer the impact.

Purchasing the assets was out of the question; the Austrian government was not a fool. If they were to buy at market value, Austria could not afford it!

Economic bubbles have existed in every era. Silesia and Prussian Saxony combined cover over 30,000 square kilometers. The mines, land, factories, and real estate there would be worth several hundred million even at a conservative estimate, and their market value would be several times higher.

Since the Prussians were willing to relocate, the Austrian government naturally had no objections. Not all factories were valuable, and Austria already had similar industries. Keeping them would only intensify market competition without serving any real purpose.

Precisely because they were not needed, the Austrian government decisively signed the treaty with the Prussians. However, it soon became apparent to them that the Prussians’ relocation was far too thorough.

The factories were dismantled and moved, and the workers were taken along with them. The nobles and landowners also relocated with their families and even the farmers who tilled their land were packed up and taken away.

Of course, it wasn’t until half a year later that the problem was discovered. By then, it was too late to do anything about it, and Franz could only accept it begrudgingly.

The treaty had been signed, so there was no going back. Besides, not everyone had left. The people who supported Austria had stayed, which could be considered a consolation prize.

Now, the Austrian government is celebrating this great diplomatic victory. Austria has regained Silesia which everyone has been longing for, and the Kingdom of Saxony has regained Prussian Saxony.

The public reaction was even more enthusiastic, with many seeing it as another step towards German unification. The notion of a unified Germany gained deeper traction among the populace.

Having gained benefits, the Austrian position also shifted at the London Conference. They adopted a more accommodating attitude towards many of the demands put forth by the Kingdom of Prussia, abandoning their initial staunch opposition.