In reality, the Kingdom of Dalmatia was surrounded by wolves, with Yugoslavia posing the greatest conflict with Dalmatia. Italy scarcely bothered to conceal its ambitions toward Dalmatia either. Germany had not yet shown similar intentions, but annexing Dalmatia would plainly benefit Germany greatly as well.
The conflict between Yugoslavia and Dalmatia was hardly surprising.
Italy's interest in Dalmatia stemmed from historical considerations. Dalmatia had been an important part of the ancient Roman Empire and had also been ruled by the Republic of Venice.
Italy considered itself the legitimate heir to both of those states.
Likewise, Italy harbored ambitions toward the entire eastern coast of the Adriatic Sea, including regions such as Albania and Greece.
Perhaps for that very reason, Germany did not explicitly oppose Dalmatian independence. Beyond that, there was also the consideration of appeasing the interest groups of the former Austro-Hungarian Empire.
Karl I, the current king of the Kingdom of Dalmatia, was a member of the House of Habsburg, so Germany did not wish to make its appetite look too ugly.
Prime Minister Yulitean said, "Your Majesty's considerations are very sound. The Kingdom of Dalmatia's greatest crisis now comes from without."
"Therefore, while developing the economy, we cannot abandon military development either, especially the development of the army."
"Our greatest enemy is Yugoslavia, and the territorial conflict between our two countries is irreconcilable."
"Therefore, we must strengthen our vigilance against Yugoslavia. In particular, along the eastern and northern borders, we should rely on the mountains to construct a defensive system."
As a country focused on the maritime economy, the Kingdom of Dalmatia now had a greater need to develop its army than its navy.
No matter how much the Kingdom of Dalmatia struggled, its navy could not possibly play much of a role in the Adriatic Sea. If