Recaps

Franz joked with Archduke Charles while reflecting on the political burden of royal marriages. At Vienna Palace, Empress Helen presented Franz with photographs of potential brides for Friedrich and his other sons, leaving him to consider the candidates.

• Franz and Archduke Charles argued over Franz's poor marksmanship during a visit to the Vienna Palace hunting grounds.
• Franz considered how much responsibility rested on royal heirs when choosing marriage partners, especially Friedrich.
• Empress Helen gave Franz photographs and background information on princesses she had selected as possible brides.
• Franz noted that the candidates ranged from five to twenty years old and that Empress Helen opposed lowering the family's standards.

Franz and Empress Helen narrowed Friedrich’s marriage candidates by ruling out unsuitable royal families for hereditary, medical, political, and status reasons. They left Sophie Marie Victoria of Baden and Princess Louise of the United Kingdom as the leading choices, with the final decision still open.

• Franz ruled out the Bonaparte Family and explained to Empress Helen why descendants of Queen Victoria were unsuitable because of hemophilia.
• Franz eliminated the Bourbon Family and the House of Orléans because a match with France’s former royal houses would threaten Napoleon IV’s rule.
• Empress Helen sorted the remaining candidates by status, leaving few princesses suitable for Friedrich, the heir apparent.
• Franz identified Princess Louise and Sophie Marie Victoria of Baden as the leading candidates for Friedrich’s marriage.
• Empress Helen asked Franz which of the two candidates he considered more suitable.

Franz and Empress Helen considered marriage alliances for their sons and decided to discreetly spread news of hemophilia among European royal families after arranging the marriages. Meanwhile, France’s occupation of Sudan worsened Britain’s troubles in Ethiopia, and Prime Minister Benjamin ordered efforts to cut off Ethiopia’s arms supply through negotiations with France and Austria.

• Franz argued that a marriage with Sophie Marie Victoria would strengthen Friedrich’s reputation and support German unification, and Empress Helen agreed she should be their first choice.
• Franz and Empress Helen discussed finding brides for Peter, William, and George, then decided Franz would arrange for news of royal hemophilia to be leaked after their sons’ marriages were settled.
• France occupied the Sudan region while Britain continued fighting Ethiopia, whose forces remained resistant despite the British army gaining the upper hand.
• Prime Minister Benjamin criticized Britain’s slow progress in Ethiopia, and Minister of War Fox blamed French and Austrian support for the prolonged campaign.
• Benjamin rejected Fox’s claims without concrete evidence and directed the Foreign Office to negotiate with France and Austria to sever Ethiopia’s arms trade.

Friedrich prepared to represent Austria on a European tour while Franz warned him that the visit would test his suitability as heir. Meanwhile, Austria considered Britain’s request to blockade Ethiopia and Franz agreed to negotiate, leaving Austrian support in place until a deal was reached.

• Franz told Friedrich to memorize the European nobles’ identities, cultivate connections, and decide how to handle Princess Sophie Marie Victoria as part of a test of his fitness as heir.
• Wessenberg reported that Britain had asked Austria to impose a comprehensive blockade on Ethiopia because the war was draining the London Government’s political standing.
• Albrecht estimated that Ethiopia’s strategic supplies could last no more than a year and that its chances of victory were nearly zero, while Felix said its only hope was to prolong the war until Britain gave up.
• Franz asked whether Austrian support could give Ethiopia a chance to win, and Albrecht said Ethiopia’s finances could not sustain the war even with help.
• Franz ordered Austria to negotiate with Britain and consider ending its support if the terms were suitable, while continuing its current assistance and warning Ethiopia that Britain wanted to cut off its trade routes.

Arms dealer Shengdeersi learned that Britain was pressuring Austria to cut off trade with Ethiopia, but he planned to keep supplying the Ethiopians through smuggling. He also proposed acquiring Ethiopian land as collateral and turning it into a small colony, though Mao Si declined to invest.

• Mao Si told Shengdeersi that Britain had sent Vienna a diplomatic note demanding that Austria cut off trade with Ethiopia.
• Shengdeersi argued that Austria could quietly allow smuggling across the long border and said he was more concerned that Ethiopia was running out of money.
• Shengdeersi estimated that arms sales could continue for a few months but warned that accepting Ethiopian territory as payment carried risks.
• Shengdeersi proposed acquiring a few thousand square kilometers of Ethiopian land and invited Mao Si to invest in the venture.
• Mao Si refused to commit, saying he lacked the authority to decide, and Shengdeersi said he would seek other partners and wait until Ethiopia was near defeat.

Shengdeersi worked to transform himself from an arms dealer into a respectable colonial merchant by securing a land lease in Ethiopia and Austrian East Africa’s support for cross-border trade. After winning over Landral, he agreed to abandon the name Shengdeersi and operate as Deersi.

• Shengdeersi prepared detailed border maps and arranged for a minister close to the Ethiopian Emperor to promote his land-lease proposal.
• Merdor warned that the Ethiopian venture required more investment, but Shengdeersi said he could pay for it with arms and Merdor promised news within a month.
• Shengdeersi told Landral that he could smuggle Austrian goods into Ethiopia and Sudan, increasing trade and tax revenue for Austrian East Africa.
• Shengdeersi proposed changing product labels or making counterfeit British and French goods to evade colonial inspections, convincing Landral to support him.
• Landral warned that Shengdeersi’s name could attract trouble from the Church, so Shengdeersi decided to abandon it and become known as Deersi.

Friedrich grew weary of his packed European tour, which required him to attend countless banquets and visit even the smallest German states. He accepted that he had to follow Franz’s plan to strengthen his reputation and the Habsburg Family’s ties, leaving the tour to continue as scheduled.

• Friedrich learned that his tour was meant to build relationships and raise his profile, while Foreign Ministry officials handled the political business.
• Friedrich asked Cole how many banquets remained, and Cole estimated that he would have to attend at least a hundred more.
• Friedrich proposed hosting one banquet to gather his invitees together, but Cole explained that noble custom required him to attend his hosts’ welcoming banquets first.
• Friedrich considered the demands of visiting every German state and spreading Greater Germany ideology, then agreed to continue according to the original plan.
• Friedrich followed Franz’s expectations of a cautious heir by accepting his assigned duties rather than improvising.

Franz arranged verbal marriage engagements for his three younger sons, then exposed the supposed source of hemophilia as Queen Victoria’s bloodline. The revelation spread from Paris across the world, leaving the British ambassador and London Government scrambling to contain the political fallout.

• Franz and Queen Helen settled marriage matches for his three younger sons, and Franz accepted that the boys had chosen their future wives.
• Franz revealed that all known sufferers of the royal disease were descendants of Queen Victoria, and a newspaper published the claim with a detailed family tree.
• Mark Payne read the article in Paris and welcomed the prospect of trouble for the British Royal Family as the story spread through the city and beyond.
• Ambassador Thatcher learned of the article, recognized that its family relationships were accurate, and reported the crisis to London and Queen Victoria.
• Prime Minister Benjamin and Foreign Secretary Edward dismissed the claim as enemy slander and planned a public medical response and a protest to France.

Franz watched the British royal family face a scandal over the supposed royal disease while Austria’s leaders began deciding whether to abandon protectionism. The government moved toward free trade, despite objections from Lombardy’s representative.

• Franz anticipated that the royal disease scandal would keep Queen Victoria’s family occupied and avoided taking further action that might expose him.
• Queen Victoria lost her composure as European newspapers spread stories linking her family and the royal disease to witches and a curse.
• Prime Minister Felix argued that Austria’s domestic market had reached the limits of its growth and that the country should enter an era of free trade.
• Tuofukesi objected that Lombardy’s traditional industries, especially cotton textiles and raw silk, needed more time before facing foreign competition.
• Felix countered that the government had repeatedly urged businesses to reform, and Franz let the debate proceed without intervening.

Franz’s government debated joining a free-trade system that could strengthen Austrian industries while putting French and Austrian textile producers at risk. Negotiations with Britain stalled over opening Austria’s financial sector, and Franz refused to remove domestic safeguards.

• Franz asked Prime Minister Felix about public opinion on free trade, and Felix said supporters and opponents were almost evenly matched.
• Franz directed the government to let both sides debate publicly, arguing that those harmed by reform needed an outlet for their anger.
• Finance Minister Karl reported that Britain demanded access to Austria’s financial sector, which Austria could not safely open.
• Franz rejected lifting financial restrictions and offered to let British capital enter Austria’s securities market under Austrian laws.
• Franz proposed barring both countries’ capital from each other’s financial markets if Britain continued to press the issue.

After Britain and Austria signed a free trade agreement, Napoleon IV and his ministers debated how France could respond to the expanding system. France faced a choice between joining despite its uncompetitive industries or remaining outside as the trade bloc spread across Europe.

• Britain and Austria signed the Anglo-Austrian Free Trade Agreement in Paris, prompting Napoleon IV to curse their actions.
• Finance Minister Allen urged Napoleon IV to limit the agreement’s impact and keep Spain aligned with France.
• Foreign Minister Montero warned that Spain might join the free trade system and argued France could no longer rely on its semi-free-trade policy.
• Allen explained that France’s high costs, resource shortages, and weak manufacturing made its industries vulnerable to open competition.
• Napoleon IV argued that tax cuts and protection of the domestic market could help French businesses compete, but Allen warned that gaps in some industries reached twenty or thirty percent.
• Napoleon IV asked how France could avoid the consequences of a free trade system spreading across Europe, recognizing that France might eventually have to join or challenge it.

France's government debated how to address the raw-material shortages it faced if it joined the free trade system. With Napoleon IV's backing, it narrowly approved Allen's plan to restart colonial development.

• Allen proposed developing France's colonies to supply domestic industry with raw materials, but Elsa argued that poor returns and harsh conditions had doomed earlier efforts.
• Allen defended further investment and prospecting for coal, while Patrice MacMahon urged France to seize territory west of the Rhine instead.
• Allen and Patrice MacMahon clashed over the risks of expansion, and Montero warned that Britain and Austria could blockade France if war dragged on.
• Napoleon IV intervened and told the ministers to list their options rather than continue arguing.
• Napoleon IV supported the colonial plan, and the French Government passed it by a narrow margin.

Austria’s leaders debated how to respond to France’s revived colonial development plan, which could strengthen France’s economy and threaten Austria. Franz agreed that Austria should secretly delay the French effort for now, and Wessenberg recommended economic measures rather than military confrontation.

• Reinhard Hardegen warned that France’s colonial plan could overcome its industrial limits and urged Austria to sabotage it.
• Wessenberg opposed acting against France over an uncertain threat, while Stephen argued that France’s colonies had limited resources and would take decades to develop.
• Felix said France could still gain considerably by developing Algeria, Morocco, and Egypt, but direct sabotage was premature.
• Franz agreed to delay the French plan quietly rather than confront France openly.
• Wessenberg proposed using economic pressure after the Paris Conference settled the nations’ spheres of influence.

Bridget Foss explained on a radio broadcast how gold-price increases and currency overissuance threatened countries with weak reserves, then proposed a New Dual-Standard System using trusted international currencies as reserves. Franz recognized the proposal as a British-Austrian scheme to advance their monetary hegemony and, afterward, learned that radio research remained at an early stage.

• Bridget Foss attributed rising gold prices to reduced mine production and growing demand, and warned that some European currencies were depreciating through excessive issuance.
• Bridget Foss proposed using reliable international currencies as reserve gold so countries could issue more currency while maintaining redemption.
• Franz concluded that Britain and Austria were coordinating gold-price manipulation to weaken rival currencies and promote the Pound Sterling and Divine Shield.
• Franz asked Friedrich about radio research, and Friedrich reported that transmission reached only twelve hundred yards without obstacles.
• Franz accepted the slow pace of research and told Friedrich to let the scientists continue experimenting.

Austria's rapid technological progress drove the spread of electricity, new power systems, and trams, while Franz observed experimental projects without interfering. The chapter ended with Austria's awards encouraging scientific research, including ambitious ventures like a moon landing program.

• By the end of 1877, electricity had reached 80 percent of Austria's cities as cheaper generation and copper wire lowered the cost of power networks.
• Companies pursued internal combustion engines and automobiles, while Franz let an experimental electric automobile project proceed without interference.
• The failure of electric-train research led the Austrian railway company to develop trams, which several cities adopted.
• A wealthy Austrian launched a Moon Landing Program and attracted funding from dozens of magnates.
• Franz's awards offered recognition and support for research projects, while the royal family's Technology Contribution Award rewarded verified achievements.

After Chile invaded Bolivia over the Atacama nitrate region, Franz decided Austria would remain neutral unless its interests were harmed, while Britain and France also waited to see how the war developed. In Bolivia, President Hilarión Daza sought allies and approved approaching Peru to fight Chile together.

• Foreign Minister Wessenberg told Franz that Chile had invaded Bolivia, and Franz concluded that Chile was militarily stronger but that a Peruvian alliance could change the war’s course.
• Franz chose to keep Austria neutral for the time being, and Britain and France likewise avoided intervening.
• President Hilarión Daza warned Bolivian officials that defeat could cost the country its nitrate mines and access to the sea.
• Foreign Minister Preta Gul proposed joining forces with Peru against Chile, and Hilarión Daza ordered the Foreign Ministry to contact the Peruvian government.

As Peru joined Bolivia against Chile, Britain weighed backing Chile to protect its influence and secure control over nitrate and currency. President Aníbal Pinto Garmendia agreed to sign a deal with British capitalist Lox in exchange for military equipment, leaving Britain poised to support Chile.

• Foreign Secretary Edward urged Prime Minister Benjamin to support Chile and explained that Chile had offered to peg its peso to Pound Sterling and grant Britain Atacama Desert mineral rights.
• Prime Minister Benjamin told Edward to seek exclusive authorization over the Atacama mineral rights, including the right to approve any third-party deal.
• President Aníbal Pinto Garmendia told Lox that Chile would transfer the Atacama mineral rights after winning the war, while Lox pressed to sign the agreement immediately.
• Lox offered weapons, ammunition, and artillery shells for three regiments, and President Aníbal Pinto Garmendia accepted the deal.

Franz weighed a risky Austrian loan to Bolivia while his ministers debated whether Austria should renew its alliance with Russia. As the treaty's expiration neared, the Vienna Government leaned toward ending it, judging its strategic benefits negligible and Russia too dependent on Austrian industry to sever economic ties easily.

• Albrecht told Franz that Bolivia and Peru had superior combined forces on paper but had less than even odds of defeating Chile because their armies lacked coordination.
• Franz ordered Bolivia to offer collateral other than Atacama nitrate deposits, while Karl warned that Bolivia's remaining mineral resources were poor security for a loan.
• Franz recognized the loan's risks and insisted that Bolivia provide different collateral, with the Austrian government serving only as an intermediary and guarantor for a private commercial loan.
• Wessenberg informed Franz that the Russo-Austrian Alliance would expire in three months and that Russian negotiators had arrived in Vienna.
• Felix said renewing the treaty had economic use but no strategic value, while Hols argued that its economic benefits were limited and Russia remained dependent on Austrian industrial equipment.

After Austria refused to renew its alliance with Russia, Alexander II and his ministers weighed the Prusso-Polish Federation’s growing military and railway strength against Russia’s need for more time. The ministers debated whether to attack early or prepare for an invasion, and Mikhail argued that Russia should borrow abroad to finance the inevitable war.

• The end of the Russo-Austrian Alliance left the Prusso-Polish Federation free to prepare for war, while both sides continued expanding their military industries and railways.
• Alexander II raged at Austria’s refusal to renew the alliance, and Alexandrovich suggested that Prussia and Austria had made a secret deal to give the Tsar a political explanation for the breakup.
• Khramed told Alexander II that Russia could either attack before the Prusso-Polish Federation finished its railway program or wait for the enemy to strike.
• Mikhail argued that Russia should attack before Prusso-Polish finances recovered and warned that the United Kingdom and France would not necessarily support the Federation.
• Koksar warned that Russia also lacked sufficient war funds, but Mikhail urged the government to borrow from London, Paris, or Vienna rather than risk defeat.

The Tsarist Government sought a 500 million Divine Shield loan from Austria to fund an earlier war against Prussia, but Wessenberg rejected its proposal to use gold as collateral. Franz then ordered Austria to investigate Russia’s limits and pursue the greatest possible benefits from a loan secured by territory.

• Russian envoy Alexander Nikolayevich Her asked Wessenberg for a 500 million Divine Shield loan, but Wessenberg refused because the Tsarist Government lacked credibility.
• Wessenberg offered to lend against Russia’s reserve gold, but Nikolayevich rejected the proposal and said Russia could pledge territory instead.
• Franz learned that Alexander II was willing to mortgage Russian territory to raise war funds and noted that the war depended on how much money each side could obtain.
• Prime Minister Felix warned that Russia could wear down the Prusso-Polish Federation if it secured enough funding.
• Franz ordered officials to monitor international capital movements, determine Russia’s financial limits, and secure the greatest benefits for Austria.

Russian envoy Francis offered the Nordic Federation an 800-million-kroner loan secured by Finland, hoping to keep it neutral in the coming Prusso-Russian War. Oscar II saw a chance to recover Finland but ordered further negotiations to reduce the risk, including seeking a British, French, or Austrian guarantee.

• Francis offered Carla Valenti a loan secured by Finland and promised that half the funds would go toward imports from the Nordic Federation.
• Carla rejected the offer, citing the loan’s size, Russia’s poor finances, and Finland’s weak economic value, while Francis recognized the federation’s interest in the collateral.
• Francis left without securing a loan, and Carla privately weighed the danger of trusting Russia.
• Oscar II worried that Russia might win the war and refuse to repay the debt or surrender Finland.
• Oscar II instructed Carla to continue negotiations and seek a guarantee from Britain, France, or Austria.

The Prusso-Polish Federation struggled to raise war funds as banks doubted its ability to repay, and William I considered seeking Jewish financial backing. The sudden death of Albrecht von Roon added another crisis, leaving William I to postpone choosing a successor until after the war.

• William I learned that only five small banks were interested in Prusso-Polish bonds, and they could provide far less than the government needed.
• William I ordered Jeffrey Friedman to approach Jewish financiers and offer support for an independent Jewish state in exchange for loans or bond purchases.
• Jeffrey Friedman warned that Jewish capital prioritized profit and that supporters of an independent state lacked the influence and funds to provide substantial backing.
• William I ordered the Foreign Ministry to raise whatever money it could and announced that he would visit Europe.
• Moltke informed William I that Albrecht von Roon had died, and William I ordered a state funeral.
• William I considered who could replace Roon as a mediator between the military and government, but deferred the decision until after the war.

William I arrived in London seeking British support for the coming Prusso-Russian War, while the British Cabinet debated which side best served its interests. Prime Minister Benjamin decided to assess the Prusso-Polish Federation’s resources and seek another great power to share the financial risk before Britain considered issuing war bonds.

• William I received a royal welcome in London, but no senior British government officials attended because the Cabinet was meeting.
• Prime Minister Benjamin asked his ministers to weigh the benefits of backing either side in the impending Prusso-Russian War.
• Foreign Minister Edward argued that Britain should help create an enemy capable of restraining Austria, while warning that a Russian victory could restore a threat to British interests.
• Colonial Minister Robert and Finance Minister Balfour questioned the assumptions behind choosing a side and warned that lending hundreds of millions of pounds could expose Britain to major losses.
• Prime Minister Benjamin ordered his government to sound out William I and said Britain might issue war bonds if the Prusso-Polish Federation secured support from Austria or France.

The Prusso-Polish Federation sought British-backed loans ahead of war with Russia, but Britain demanded its gold reserves as security. Friedman weighed the political cost and British promises of diplomatic support as the negotiations continued.

• Friedman asked Britain to endorse loans for the Prusso-Polish Federation, offering high interest and government assets as collateral.
• Edward rejected the proposed collateral as unreliable, arguing that war could leave the Federation unable to repay its debts.
• Edward offered a loan of 60 million Pound Sterling if the Federation deposited its gold reserves in the Bank of England.
• Friedman objected that the gold was worth at least as much as the loan and that depositing it would undermine monetary independence and offend Austria.
• Edward said the terms could be discussed and offered British help in securing more supporters, including France, for the coming war.
• Friedman considered Britain's offer despite the Federation's lack of valuable public assets to pledge as collateral.

Franz and his ministers assessed the growing ties between the Prusso-Polish Federation, Britain, and France, and Austria’s strategic position. He decided to accelerate lending negotiations with Russia, using its gold and territory as collateral to keep it fighting the Prusso-Polish Federation.

• Wessenberg and Prime Minister Felix warned that Prussia and France were drawing closer and urged Austria to prepare for the consequences.
• Wessenberg argued that Britain was more likely to help Austria contain France, while Franz warned that British policy would follow its interests and that France’s resource crisis could destabilize the balance of power.
• Reinhard Hardegen reported that France’s industrial strength was falling behind Austria’s and Britain’s, especially in steel and coal production.
• Franz ordered the government to speed up loan negotiations with Russia, accepting territorial collateral if Russia deposited its gold reserves in the Austrian National Bank and used most of the loan to buy Austrian goods.
• Karl objected that Russia was unlikely to repay and that territorial claims would be risky, but Franz directed officials to negotiate for German lands, Ukrainian territory, Bulgaria, and Constantinople as collateral.