Arc 20War, Alliances, and Industry

Franz brought the South African war to an armistice while reshaping Austria’s industry and colonial railway plans. As France consolidated power and Russia sought new partners, Austria and Prussia weighed how to exploit the shifting alliances, while Franz prepared for possible intervention in Mexico.

  • Franz defended compensation for Boer soldiers, ordered South Africa fragmented under provincial administration, and pressed France to recognize Austria’s contribution to the war.
  • Franz launched heavy-industry plans in Serbia, Silesia, and Galicia, then approved African railways designed to export resources without connecting coal and iron regions.
  • Viscount Fikeni conscripted local men and drove repeated assaults on Cape Town as Governor Delfo struggled with shortages, casualties, and falling morale.
  • Napoleon III suppressed Garibaldi and Mazzini’s uprising in Rome, while Franz proposed regulating corrupt clergy amid growing public unrest over the Church.
  • Franz directed Austria’s economic policy toward electricity and heavy industry, approved the Energy Law, and planned to expand pork production against Russian grain competition.
  • Britain and the Boer Republic signed an armistice on June 18, 1871, after an epidemic and supply crisis crippled both sides, with Britain paying to reclaim land near Cape Town.
  • Austria, France, and Britain signed a five-year alliance at Versailles, while Franz limited African railway construction and Napoleon III sought to sell France’s Mexican interests.
  • Alexandrovich abandoned his bid for French financing as Prussia considered offering Austria Ukrainian and Balkan territories to break the Russo-Austrian Alliance, while Franz prepared to protect Maximilian in Mexico.
Chapters 490–514 Vol. 5 Read

Ch. 490A Testament to Friendship

Franz reviewed the South African War’s rising costs and defended Austria’s support for the Boer forces, while considering how to manage the region after victory. He concluded that Austria should end the war soon and remind France that its campaign had fulfilled their agreement.

  • Finance Minister Karl reported that military spending for the past two months had reached 12.486 million Divine Shields.
  • Franz defended paying and compensating the Boer soldiers, arguing that fair treatment would preserve the nobles’ loyalty and that South Africa’s prospects justified the investment.
  • Karl urged Franz to bring the war to a swift close now that France had stabilized the situation in Italy.
  • Franz decided South Africa should be fragmented and placed under a provincial administration to prevent regional cliques from forming.
  • Franz ordered the Foreign Ministry to remind France that Austria had fulfilled its agreement by holding back more than half of Britain’s army in South Africa.

Ch. 491Industrial Tuition Fees

Franz reviewed Austria’s growing steel demand and ordered the government to support several new heavy industrial bases by improving transportation. He also considered Russia’s expanding grain production and the technical obstacles that kept latecomer countries dependent on industrial powers, leaving Austria poised to benefit from its industrial and processing advantages.

  • Franz saw that Austria’s steel output was nearing a bottleneck and projected demand would double within a decade.
  • Franz ordered Serbia, Silesia, and Galicia to be included in a heavy-industry project and directed the government to address transportation problems.
  • Franz considered how Russia’s poor transport network and harsh conditions constrained its industry and grain exports.
  • Franz assessed the effects of Russia’s expanding farmland on grain markets and noted Austria’s advantage in processing Russian grain.
  • Franz reflected that machinery manuals, hidden technical obstacles, and maintenance costs forced industrial latecomers to pay for access to advanced technology.

Ch. 492Indispensable Errors (Bonus Chapter for Tips)

Franz and Minister of Industry Kaschin-Quebeck discussed how Austria would address its copper shortage while preventing African colonies from developing competing industries. Franz ordered colonial railway construction accelerated and secretly planned to direct routes toward gold extraction while neglecting connections that could support African industry.

  • Franz rejected smelting copper ore in Africa because the continent lacked coal and transporting materials would make local production costly.
  • Kaschin-Quebeck argued that Austria could permit mining while using railway planning to obstruct the development of an African industrial system.
  • Franz agreed to prioritize colonial railways while secretly avoiding connections between African coal and iron regions.
  • Franz ordered railway construction accelerated before the public could learn of the plan, and Stein received the assignment with dismay.

Ch. 493Packaging Is Important

Viscount Fikeni raced to secure supplies and prepare for the assault on Cape Town, ordering forced recruitment and labor to keep the campaign moving. As Cape Town panicked, Governor Delfo used inflated enemy numbers and a staged display of sacrifice to deflect blame while local officials conscripted residents.

  • Viscount Fikeni learned that supplies were delayed and ordered the Logistics Department to speed delivery while engineers cleared waterways using requisitioned laborers.
  • A staff officer proposed recruiting cannon fodder for the Battle of Cape Town, and Viscount Fikeni ordered the Third Division to conscript able-bodied tribesmen and seize grain.
  • Cape Town residents fled toward the Cape of Good Hope, but Sheriff Amber conscripted Pringle under an extended service-age decree after he could not pay the exemption fee.
  • Governor Delfo’s officials reported that they had conscripted eight thousand men, and Delfo presented the recruitment as a necessary sacrifice for the Empire.
  • Governor Delfo prepared a will and declared that he would live and die with Cape Town, hoping to be remembered as a hero if the city fell.

Ch. 494Hurting Others at One's Own Expense

Governor Delfo struggled to control Cape Town’s worsening prices and supply shortages as the British faced a growing military threat. Viscount Fikeni ordered relentless attacks on the British positions, leaving Colonel Belding’s Sixth Division under concentrated bombardment.

  • A middle-aged official warned Governor Delfo that food prices had tripled and necessities were becoming scarce, so Delfo planned to force merchants to cooperate with price controls.
  • A military officer told Governor Delfo that supplies were running low and newly enlisted soldiers had to use retired rifles, while Delfo said he had requested aid from Britain.
  • Viscount Fikeni ordered supervision squads to force the assault troops forward and commanded nonstop attacks until they were dead.
  • The Boer Republic forces concentrated artillery fire on British positions, inflicting heavy losses on the Colonial Sixth Division in northern Cape Town.
  • Colonel Belding demanded artillery support from headquarters as the bombardment battered his division and damaged its morale.

Ch. 495Faith Crisis

Napoleon III sought to weaken the Holy See after Pope Pius IX challenged his authority, but the campaign exposed church scandals and triggered a crisis of faith across Europe. As Austria also faced growing religious unrest, Franz considered intervening by regulating clergy through government law.

  • Napoleon III rejected Ansoqi’s suggestion to assassinate Pius IX and ordered Pelixi to undermine the Holy See and restrict the Pope’s political power.
  • Napoleon III’s campaign publicized the Holy See’s scandals, helping him eliminate political rivals but provoking anti-church movements and a crisis of faith across Europe.
  • Austria’s clergy were also exposed in the press, while atheistic ideas and public debates spread through the country.
  • Franz asked Prime Minister Felix how the cabinet would calm the unrest, and Felix said Franz would need to reassure the public himself.
  • Franz proposed that the government regulate clergy conduct and punish corrupt priests, while also curbing the Church’s power.

Ch. 496The Roman Uprising Erupts

As the crisis weakened the Church, Italian revolutionaries Mazzini and Garibaldi argued over whether to ally with it against French rule. With covert Church support, the insurgents captured Rome before Christmas 1870, and Napoleon III ordered the rebellion crushed immediately.

  • Mazzini opposed Garibaldi’s proposal to join forces with the Church, but accepted that the uprising had to proceed with British backing.
  • Garibaldi and the revolutionaries launched an armed uprising before Christmas 1870 and captured Rome with covert Church assistance.
  • Uprisings spread across Italy, and the revolt threatened the newly established Greater French Empire.
  • Napoleon III ordered the Ministry of War to suppress the rebellion and execute the revolutionary leaders.
  • Patrice MacMahon told Napoleon III that troops prepared to quell the revolt would set out that day.

Ch. 497When the Snipe and Clam Fight, Slay the Fisherman First

After the Roman uprising collapsed, Prime Minister Benjamin weighed recognizing the Greater French Empire to break the Franco-Austrian partnership. The British Cabinet also confronted the worsening South African war, but army and navy officials clashed over reinforcements and expansion before agreeing to send troops to Cape Town.

  • The French crushed the Roman uprising within a morning after Church figures switched sides, and the Italian independence movement dwindled to scattered guerrilla bands.
  • Foreign Minister McLean urged Prime Minister Benjamin to recognize the Greater French Empire and seek entry into its alliance to counter Franco-Austrian pressure.
  • Prime Minister Benjamin agreed to try to split France and Austria by exploiting opposition to the Greater French Empire within the Austrian Government.
  • Colonial Secretary Louis warned the Cabinet that South African forces might surrender unless reinforcements arrived, while Governor Delfo lacked the confidence to launch a decisive counterattack.
  • Secretary of State for War Fox offered to send a hundred thousand reinforcements if the Army expanded, and Secretary of State for the Navy Robert attacked the Army’s performance and expansion plans.
  • Prime Minister Benjamin ended the argument, shelved the Army expansion question, and approved reinforcements for Cape Town using Indian colonial troops.

Ch. 498Growing Amid Blood and Fire

Franz agreed to let Britain join the alliance while delaying the negotiations to give Austria’s South African campaign more time. At Cape Town, Viscount Fikeni adopted a plan to reduce assault casualties, while Major Hanks’s cannon-fodder unit continued its futile attacks under the punishing summer heat.

  • Foreign Minister Wessenberg advised Franz to accept Britain into the alliance, and Franz ordered negotiations delayed until the second half of the next year so the South African forces could keep fighting.
  • Viscount Fikeni reported that Cape Town remained untaken, reinforcements were being gathered from Congo and East Africa, and the losses made new tactics necessary.
  • Chief of Staff Jacob proposed digging trenches and tunnels to undermine the British fortifications, and Viscount Fikeni approved trying the approach.
  • Major Hanks struggled to assemble and lead his cannon-fodder unit into another attack, having abandoned his effort to train them into an auxiliary corps.
  • As the assault began, Major Hanks watched the casualties and focused on estimating the battle’s results.

Ch. 499Christmas

Vienna celebrated Christmas while Franz accepted that the South African war would not end before the holiday and considered Austria’s need to rein in its expansion. In Cape Town, shortages, refugees, and military failures weighed on Governor Delfo, who spent Christmas night doubting both his future and Britain’s strength.

  • Franz set aside his concerns about the delayed war and distributed ordinary candy as Christmas gifts to the soldiers during the truce.
  • Viscount Fikeni worried that the officers and soldiers were exhausted and that the homeland would demand a ceasefire if Cape Town was not captured by the deadline.
  • Governor Delfo faced Cape Town’s shortages of food, water, fuel, and building materials as refugees crowded the city.
  • Cape Town reduced its population by 120,000 by sending refugees away, while British supply ships continued to face dangerous seas and pirate attacks.
  • Governor Delfo learned that Indian colonial troops would reinforce the area and prepared to return home rather than attempt a counterattack.
  • Delfo spent Christmas night awake, worrying about the war, his own future, and Britain’s decline.

Ch. 500Industrial Revolution's Foundation—Cost

After European powers recognized Greater France, Franz and the other leaders began discussing a new international order while Austria reviewed its economic course. Austria planned to promote electric power cautiously, since its raw-material advantages made the technology promising but the high costs could burden poorer cities.

  • The United Kingdom, Austria, and other European countries recognized Greater France, ending Napoleon III’s diplomatic isolation and prompting talks about a new international order.
  • Franz focused on revising Austria’s economic policies for the Second Industrial Revolution while preserving most existing measures.
  • Economic Minister Andrew reported strong growth in electric power and infant products, declining growth in traditional industries, and proposed promoting electric lighting and electrical innovation.
  • Prime Minister Felix warned that electric networks were too expensive for many cities and said the government would hold officials accountable if they burdened residents with unaffordable projects.
  • The report highlighted Austria’s abundant copper and rubber resources as advantages that could lower electrical technology costs compared with Britain and France.

Ch. 501Energy Regulation

Franz pushed Austria to prepare for future energy needs while officials debated expanding electricity. The conference approved an Energy Law that used taxes and refunds to reserve the highest-quality coal for steelmaking, while Franz’s hidden industrial conglomerates stood to benefit from the changing economy.

  • A technical worker accidentally invented the electric fan, prompting Franz to add practical courses to Austrian education from 1871.
  • At the economic conference, officials proposed cutting taxes for electrical enterprises and lowering copper and rubber prices to make electricity cheaper.
  • Franz privately persuaded Prime Minister Felix to classify industrial coal and prepare for future shortages of bituminous coal.
  • Prime Minister Felix proposed using economic measures to direct the finest coal to steelmaking, and the conference narrowly approved the Energy Law.
  • Franz accepted the policy’s potential losses because his concealed holdings in coal mines and steel enterprises balanced one another.

Ch. 502Franz's Headache

Franz considered how Russia’s returning grain exports threatened Austria’s agricultural dominance and concluded that the country needed to adjust its agriculture, though guiding farmers toward new crops was nearly impossible. He was left with no clear solution to the problem.

  • Austria designated electric power and heavy industry as pillar industries, while railways lost that status as their expansion neared saturation.
  • Franz anticipated that Alexander II’s debt-for-grain plan would reopen international markets to Russian exports and put pressure on Austrian agriculture.
  • Franz judged that Austria could not win a grain price war without sacrificing substantial profits, while its agricultural processing industries also faced competition from cheap Russian supplies.
  • Franz recognized that Austria needed to shift away from vulnerable crops, but opaque market information and the difficulty of coordinating farmers made the adjustment hard to manage.

Ch. 503Promoting Pork

Austria’s Minister of Agriculture Christian warned Franz that Russia’s return to grain exports could threaten Austria’s agricultural trade, while domestic demand for meat remained limited. Franz ordered a livestock expansion plan, emphasizing cheaper pork and adding it to meals for children in compulsory education.

  • Christian reviewed the Ministry of Agriculture’s figures and reported that domestic meat demand was balanced, while the international market had excess supplies of beef jerky and cured meat.
  • Christian warned Franz that Russian grain exports could reclaim market share and disrupt Austria’s agricultural exports.
  • Franz ordered the Ministry of Agriculture to plan for two million additional tons of meat products, with lower prices and strategic reserves to support the market.
  • Franz chose to expand pork production because it was cheaper than beef and mutton.
  • Franz proposed giving children in compulsory education an additional 300 grams of pork each week.

Ch. 504Conspiracy and Open Schemes

Franz worked to hinder Russian grain exports while preserving Austria’s reputation for honoring its treaties. He judged that Austria and Russia’s conflicting ambitions, especially in the Mediterranean, made their alliance increasingly fragile, though he kept their disagreements concealed.

  • Franz encouraged neighboring European states to impose high tariffs on Russian grain, while the German Federal Empire debated accepting it as debt repayment.
  • Franz avoided tearing up the Russo-Austrian Alliance, reasoning that doing so would damage Austria’s international credibility and standing with its prospective allies.
  • The Prussian government and Junker nobles remained firmly anti-Russian and prepared for the possibility of another Prusso-Russian war.
  • Franz weighed whether Austria should renew its alliance with Russia, anticipating that either a Russian or Prussian defeat could benefit Austria.
  • Franz recognized that France’s withdrawal from the Balkans had left Austria responsible for containing Russian influence in the Mediterranean, setting the two empires against each other.

Ch. 505Franco-Russian Rapprochement

The French annexation of Italy heightened European fears, and France’s rapprochement with Russia alarmed Austria. Franz dismissed the prospect of an immediate Franco-Russian alliance but ordered cautious preparations, including strengthening ties with Prussia and encouraging a future Prusso-Russian War.

  • After the Roman uprising failed, Garibaldi and Mazzini went into exile in the United States because Britain refused them asylum.
  • France consolidated its rule over Italy, increasing its population and resources and intensifying European anxiety about French power.
  • Napoleon III eased relations with Russia and allowed talk of a Franco-Russian Alliance to serve as leverage while France digested its gains.
  • At Vienna Palace, Franz argued that France and Russia lacked the motive and ability to form an alliance soon, while Wessenberg urged Austria to prepare for the worst.
  • Franz rejected an immediate alliance with Prussia but ordered Austria to strengthen relations cautiously and push for a Prusso-Russian War before France and Russia could unite.

Ch. 506Alexandrovich

Crown Prince Alexandrovich objected to beginning his European tour in France in exchange for a French loan, warning Alexander II that the move could endanger Russia’s alliance with Austria. Alexander II accepted the risks and asked his son to study Europe’s development, while admitting Russia had fallen behind its rivals.

  • The Russian Foreign Ministry announced that Alexandrovich would begin his European tour in France, prompting speculation that Russia was testing Austria and signaling dissatisfaction with Vienna.
  • France offered Alexander II’s government a loan of 500 million Francs in return for the crown prince’s visit, as Russia faced financial pressure and its alliance with Austria neared expiration.
  • Alexandrovich tore up his preferred itinerary and privately criticized Alexander II for sacrificing the tour’s diplomatic purpose to secure French money.
  • Alexander II apologized to Alexandrovich and explained that the government could not refuse France’s favorable loan terms.
  • Alexandrovich warned that Austria might reject renewing its alliance with Russia or strike first if Russia drew closer to France.
  • Alexander II urged Alexandrovich to inspect European countries during his tour and acknowledged that Russia had fallen behind England, France, and Austria.

Ch. 507The Power of Shoddy Construction

The British defense of Cape Town held despite the Boer Republic army’s long siege, while poor recruitment and deserters plunged the surrounding regions into chaos. Facing mounting pressure and the risk that his shoddy fortifications would be exposed, Governor Delfo requested negotiations with the Boer Republic, and Viscount Fikeni accepted the invitation.

  • The British reinforced Cape Town and prepared for a prolonged siege, while Viscount Fikeni’s strategy faltered and deserters preyed on native tribes around the city.
  • Governor Delfo’s cheaply built forts protected the remaining British-held area, though their poor materials and construction threatened to expose him to blame if the defenses were tested.
  • Will told Governor Delfo that Austria would not negotiate over South Africa and insisted Britain deal with the Boer Republic government.
  • Governor Delfo instructed Will to request negotiations with the Boer Republic to limit Britain’s losses, and London sent the request that day.
  • Viscount Fikeni was surprised by Britain’s invitation but agreed to negotiate because Cape Town remained too difficult to capture and his forces had achieved their aims.

Ch. 508Unexpected Accident

Franz agreed to begin negotiations with Britain as both sides faced the costs of continuing the war. An epidemic then spread through the British defenders and Boer Republic forces, leaving Viscount Fikeni to contain it while the negotiations were underway.

  • Franz approved negotiations after concluding that capturing Cape Town would require more money than Vienna Government could afford.
  • The British and Boer Republic forces faced supply pressures as the approaching winter threatened to make conditions in Cape Town worse.
  • An epidemic spread from Indian colonial troops through the crowded British garrison and the Boer Republic's cannon-fodder units.
  • Governor Delfo ordered British patients isolated and requested epidemic-prevention experts from the homeland.
  • Dr. Luke's inspection revealed an outbreak, and Viscount Fikeni learned that more than two thousand people, including eighty-seven Boer soldiers, were infected.
  • Viscount Fikeni ordered the main force out of the occupied streets and assigned the epidemic-struck Seventh Division to take over the defenses.

Ch. 509Cape Town Treaty

An epidemic worsened Cape Town’s water and supply crises, forcing the British to accept major concessions in negotiations with the Boer Republic. The United Kingdom and the Boer Republic signed an armistice on June 18, 1871, ending the war without either side formally declaring victory or defeat.

  • The epidemic spread through South Africa, with Indian colonial soldiers in Cape Town suffering the highest mortality as supplies and medical care fell short.
  • Governor Delfo faced rising deaths, dwindling water and supplies, and repeated mutinies while negotiations stalled.
  • The British refrained from attacking the besieging forces because their troops’ morale was fragile and defeat could trigger further unrest.
  • As winter approached, the British made major concessions and signed an armistice with the Boer Republic outside Cape Town on June 18, 1871.
  • Under the treaty, Britain paid 3.6 million Pound Sterling to repurchase land within two hundred miles of Cape Town, and both sides agreed to exchange prisoners or pay ransoms.

Ch. 510Striving Not to Become an African Emperor

After the South African War, Austria reshaped political power in its new territories and joined Britain and France in a five-year alliance. At a cabinet meeting, Franz scaled back plans for African railways, choosing a cheaper network that would serve strategic and colonial-control goals.

  • The Vienna Government calculated that reparations from the South African War covered less than a quarter of its costs, while Austrian loyalists and noble families gained influence in the reshuffled Boer territories.
  • On July 1, 1871, representatives of Britain, France, and Austria signed a five-year alliance treaty at Versailles.
  • Prime Minister Felix urged Franz to postpone the African railway network because the government could not afford its cost and private investors had lost interest in railway projects.
  • Franz agreed to limit construction to two strategic railways and proposed connecting them to existing lines in the Congo to reduce investment.
  • Franz planned the routes to export African resources while preventing the colonies from developing an independent industrial system.

Ch. 511The French Seeking to Cut Their Losses

Franz’s African railway plans strengthened Austria’s position while France slowed its colonial expansion and struggled to contain the Mexican Empire. Napoleon III decided France needed to find a new party to take over Mexico and ordered the Foreign Ministry to seek one without violating the treaty excluding the United States and the Confederacy.

  • Franz backed a reduced African railway network, believing it would secure Austria’s colonies and deter Britain from coveting South African gold.
  • France’s strategic contraction slowed its expansion in Africa and left it unable to suppress the worsening Mexican rebellion.
  • Napoleon III regretted supporting Maximilian I and hesitated to abandon the Mexican Empire after France had invested heavily in it.
  • Marquis Fickel urged Napoleon III to cut France’s losses by finding someone to take over Mexico, but Napoleon rejected selling its interests to the United States or the Confederate States of America.
  • Finance Minister Allen proposed letting a new ruler take over Mexico if it honored the Mexican Government’s debts to France.
  • Napoleon III ordered the Foreign Ministry to contact European countries and find a buyer quickly, even if France recovered little.

Ch. 512Deceit and Intrigue

The French Government tried to sell its Mexican assets but found no buyer willing to guarantee the Mexican Empire’s debts. At the rebel headquarters, Juárez weighed whether to agree to French terms and later break his word, while his ministers urged him to exploit France’s likely withdrawal.

  • The French Government lowered its terms for selling its Mexican privileges and loans, but Britain, Austria, Spain, and Prussia showed no willingness or ability to take over.
  • The French Government secretly contacted Juárez’s Republicans about honoring Maximilian I’s treaties in exchange for allowing them to take power.
  • Foreign Minister Hadero told Juárez that France was preparing to sell its Mexican privileges, prompting the rebels to celebrate the prospect of French withdrawal.
  • Hadero proposed that the Republicans accept the French terms and renege after overthrowing Maximilian I, but Juárez warned that France could retaliate.
  • Minister of Finance Anderson and Army Minister Grovey supported Hadero’s proposal, arguing that France would be occupied elsewhere and Mexico could become strong before facing retaliation.

Ch. 513Postwar Preparations

Alexandrovich traveled to Paris and recognized Russia’s diplomatic isolation and military weaknesses. Meanwhile, Franz prepared for Maximilian’s likely fall in Mexico and considered expanding Austrian Central America into a constituent kingdom.

  • Alexandrovich read French newspapers on the train and realized that many French people disliked Russia and that Russia faced dangerous isolation.
  • Alexandrovich reflected that Russia’s defeat in the Prusso-Russian War stemmed from poor logistics, outdated weapons, and inadequate training.
  • Franz learned that the Paris Government planned to withdraw its troops from Mexico and secretly ordered preparations to protect Maximilian.
  • Franz considered intervening in Mexico if Maximilian fell and the Mexican rebels gave Austria a pretext for war.
  • Franz considered sending one of his sons to rule Austrian Central America as a constituent kingdom.

Ch. 514A New Height in Making Empty Promises

Alexandrovich’s tour failed to secure Russian loans, while Prussia’s leaders discussed exploiting Russia’s diplomacy and economic tensions with Austria to weaken the Russo-Austrian Alliance. The chapter ended with Foreign Minister McKet proposing that Prussia tempt Austria with Ukrainian and Balkan territory after a future war with Russia.

  • Alexandrovich abandoned his efforts to secure French financing and sailed for London, where he expected no loans from the United Kingdom.
  • William I and Prussian officials met in Berlin to discuss sabotaging Russia’s attempts to escape diplomatic isolation.
  • Foreign Minister McKet proposed driving a wedge between Russia and Austria by encouraging Russia to open its market to Britain and France.
  • Chancellor Moltke warned that Austria’s substantial trade with Russia made the alliance difficult to break.
  • McKet suggested promising Austria Ukraine and the Russian-held Balkan Peninsula in exchange for abandoning the Russo-Austrian Alliance, stunning the assembled officials.
Arc 20 of 47