Arc 7The Balkan War Begins

Austria built its influence in the German states while expanding its economy and military, then used a crisis between Russia and the Ottoman Empire to pursue its own aims in the Danube basin. The arc ended with Russia and Austria dividing control of Moldavia and Wallachia as Russian forces advanced toward Bulgaria.

  • Franz approved a secret German Unification Committee and later reached a treaty with Prussia, while Austria and Prussia blocked Britain’s plan for a Bavaria-led German state.
  • Austria expanded railway investment and industry, raised its military budget, and began building reserves as Franz prepared for conflict.
  • Franz approved the Tobacco and Alcohol Monopoly System to finance war and kept Austria’s ambitions in the Balkans concealed from other powers.
  • After Louis-Napoleon Bonaparte seized power and became Emperor Napoleon III, Franz sought to exploit the dispute over the Holy Places while limiting Austria’s public commitments.
  • When Russia declared war on the Ottoman Empire, Franz and his ministers chose to enter the Danube basin, and Austrian troops occupied Moldavia and Wallachia without resistance.
  • Napoleon III urged Britain to support the Ottomans, while Russia and Austria signed the Balkan Treaty, transferring Moldavia and Wallachia to Austria in exchange for Russian passage and logistical support.
  • Two hundred and fifty thousand Russian troops marched toward Bulgaria as Bulgarians prepared to welcome them and unrest spread among other Ottoman peoples.
Chapters 156–181 Vol. 2 Read

Ch. 156Wind Rises

Maximilian I committed Bavaria to an alliance with Prussia, fearing Austria’s growing influence over the German states. After Bavaria and Prussia proposed a responsible cabinet, Austrian officials considered countering them with a broader cabinet and a German imperial election to gauge public support for unification.

  • Maximilian I defended his alliance with Prussia against Prime Minister Mu'ersi’s warnings that it would provoke Austria and alienate Bavarians.
  • On July 21, 1850, Prussia, Bavaria, Hanover, Brunswick, and other states proposed forming a responsible cabinet before the German Confederation Federal Assembly.
  • In Vienna, Metternich recommended that Austria win over the smaller German states and form a cabinet encompassing all the states.
  • Prime Minister Felix doubted that a responsible cabinet could govern the German lands, while Karl proposed calling for an imperial election as a way to disrupt Prussia’s plans.
  • Karl explained that the proposed election would test how willing the German people were to accept Austria and inform future policy.

Ch. 157Surging Clouds

Franz approved a covert campaign to win support for Austrian-led German unification as the great powers maneuvered to prevent the German states from uniting. Britain resolved to oppose even a nominal unified German government, while Palmerston noted that other powers shared its goal.

  • Franz ordered Austria to increase its infiltration of Bavaria, and Felix proposed establishing an independent German Unification Committee to win over supporters and undermine opposition.
  • Franz approved the committee, which would publicly have no connection to Austria and would focus on persuading people in the German states.
  • In Paris, President Napoleon favored a German arrangement led by Bavaria but avoided taking the lead while France faced domestic problems and European suspicion.
  • In London, John Russell and his ministers discussed the threat posed by a responsible cabinet and the possibility of Austria, Prussia, and Bavaria forming an alliance.
  • John Russell ordered Palmerston to prevent any unified German government from emerging, and Palmerston assured him that other powers also wanted to keep the German lands divided.

Ch. 158Capital Influx

Austria’s railway shares debuted in Vienna and surged, attracting foreign capital and helping fuel rapid economic growth. Franz welcomed the investment but left the boom unchecked for now, despite worrying that it could eventually lead to overcapacity and a crisis.

  • On June 11, 1850, the Austrian Federal Railway Operations Group issued three million shares at ten florins each on the Vienna Securities Exchange.
  • By the afternoon close, the stock had risen 56 percent to 15.6 florins per share, and John Stwa reported the result to Franz at Schönbrunn Palace.
  • Franz praised Stwa’s work and said the Royal Bank’s employees would receive bonuses according to established rules.
  • Foreign capital flowed into Austrian railways and other government-supported industries as the economy accelerated through the second half of 1850.
  • Franz worried that uncontrolled expansion could cause overcapacity but decided to wait before intervening.

Ch. 160A Willow Planted by Chance Grows into Shade

Bavaria’s railway companies proposed a trunk line connecting Baden in the west to Austria at Salzburg, and Maximilian I supported the project for its economic and political benefits. Franz agreed to cooperate, recognizing that the railway would advance Austria’s influence across South Germany.

  • Bavarian economists and investors promoted a railway trunk line, and the Royal Bavarian Railway Company decided to seek construction rights and prepare plans.
  • The Royal Bavarian Railway Company and the Bavarian Watson Railway Company submitted railway proposals to Maximilian I.
  • Maximilian I asked about diplomatic obstacles, and his Foreign Minister explained how member states could coordinate construction and operation under the Holy Roman Alliance.
  • Franz approved Bavaria’s proposal and offered Austrian cooperation and access to the Vienna stock market if funding was needed.
  • Franz welcomed Bavaria taking responsibility for the railway and anticipated that it would help Austria extend its influence across South Germany.

Ch. 161Great Reserve Strategy

Austria’s attempt to shape the German Confederation faltered amid opposition from Prussia, Bavaria, and the great powers, while Franz’s government debated expanding the empire’s reserves to two million. The ministers agreed the reserve plan was feasible, leaving its funding and practical implementation unresolved.

  • Austria proposed a joint cabinet for the German Confederation, but Prussia, Bavaria, Britain, France, and Russia opposed it, and Austria dropped its proposal to elect an emperor.
  • Britain proposed dissolving the Confederation assembly and forming a new country under Bavaria with the small German states, but Austria and Prussia joined forces to reject the plan.
  • Prince Windisch-Grätz urged the Austrian Government to raise the number of reservists to two million, citing threats from France, Prussia, and Russia.
  • Finance Minister Karl supported the goal but resisted its cost, arguing that the War Ministry could build the reserve gradually and keep spending low.
  • Franz redirected the ministers from their budget dispute to consider whether the reserve plan was workable, and Prime Minister Felix and the others supported it.
  • Prince Windisch-Grätz proposed expanding the officer corps and assigning two deputies to frontline officers so Austria could mobilize a million men quickly in wartime.

Ch. 162No Eternal Enemies

Franz secured approval for an independent General Staff led by Field Marshal Radetzky, advancing Austria’s colonial strategy while preserving checks on military authority. Meanwhile, Bavaria’s bid to unite German states faltered, and Prussia rejected a British loan condition that required it to leave the German Confederation, turning to Austria for support.

  • Franz established a General Staff under Field Marshal Radetzky after Prince Windisch-Grätz objected, and the proposal passed.
  • Maximilian I learned that Württemberg had rejected Bavaria’s overtures to unite the German states.
  • German nationalists planned a demonstration against Bavaria’s rumored desire for independence, while Austrians quietly supported them.
  • Frederick William IV learned that Britain would lend Prussia money only if it permanently withdrew from the German Confederation.
  • Joseph von Radowitz advised Frederick William IV to leak the British condition to Austria rather than rush into an alliance, preserving Prussia’s initiative.

Ch. 163A Wonderful Misunderstanding

Franz and the Austrian Government considered how to answer British pressure on Prussia and debated whether to divide the German lands with the Prussian Government. Austria chose to make secret contact and offer Prussia a share, while Franz remained wary of relying on Russia; Prussia was already willing to cooperate after its defeat and domestic unrest.

  • The Austrian Government suspected Britain was pressuring Prussia to prevent German unification, and Franz assessed the danger of a European coalition opposing Austria.
  • Metternich urged Austria to help Prussia resist Britain, while Prime Minister Felix and Metternich discussed whether Prussia would agree to divide the German lands.
  • Franz ordered secret contact with the Prussian Government and argued that Austria should offer it North Germany rather than risk making it an enemy.
  • Archduke Louis suggested using British pressure to isolate Prussia and let Austria take the German lands alone, but Franz rejected the plan because Russia might not reliably restrain Prussia.
  • The Prussian Government accepted Austria’s approach because its defeat in the Prusso-Danish War and a suppressed revolutionary uprising had weakened its confidence in unifying Germany.

Ch. 164Marriage Alliance?

Austria and Prussia signed a treaty against foreign interference, while Franz refused to help Prussia financially. Bavaria sought to repair relations with Austria through a marriage alliance, but Franz rejected the proposal for the time being and left the matter postponed.

  • Austria and Prussia signed the German Treaty in Vienna, and Franz refused Metternich’s request to approve a Prussian loan.
  • Maximilian I asked how Bavaria could escape its diplomatic predicament, and his prime minister proposed marrying Princess Helen to Franz.
  • Empress Dowager Sophie welcomed the Bavarian proposal, but Franz told her Austria should not form a marriage alliance with Bavaria amid the countries’ conflict.
  • Franz explained that Bavaria had betrayed its alliance with Austria by siding with Prussia, and Sophie agreed to set the marriage proposal aside for a few years.

Ch. 165An Ambitious Admiralty

Franz reviewed Austria’s network of secret treaties and its plans to secure colonial supply routes, then challenged the Admiralty’s conservative shipbuilding program. He rejected a fleet built mainly of sailing warships and left the story with Austria’s naval modernization still to be advanced discreetly.

  • Austria’s secret treaties included agreements with France, Britain, Russia, Prussia, and Spain, while negotiations with the Netherlands and Portugal continued.
  • The Admiralty requested fifty million shield to build a fleet within five years, but Franz questioned its plan to build sailing warships instead of adopting steam propulsion.
  • Filkos said Austria could theoretically build steam-powered warships but argued that their cost and maintenance made them risky.
  • Franz ordered the navy to apply new technology rather than let its ships become targets for more modern fleets.
  • Franz decided not to publicly propose ironclads and planned to promote naval innovation behind the scenes.

Ch. 166Arms Race

Austria and other European powers expanded their militaries as Russia prepared for war, while France’s army buildup intensified fears of intervention. Franz weighed the risks of escalating Austria’s arms race against the chance to unify South Germany, and the chapter left him ready to act on that gamble.

  • The Austrian Empire raised its 1851 military budget and began expanding its reserves as its leaders anticipated a Russo-Turkish war.
  • Prime Minister Felix warned Franz that France had added 50,000 soldiers, prompting the Austrian cabinet to discuss how to counter French intervention.
  • Marshal Radetzky and Prince Windisch-Grätz debated whether Austria could defeat France in Germany or Italy, while Metternich argued that Prussia would help block the French.
  • Franz concluded that the European arms race could weaken Prussia and create an opening for Austria to unify South Germany.
  • Chancellor Felix and Marshal Radetzky urged Franz to escalate military spending, accepting the risk in exchange for the chance to gain South Germany or turn toward the Balkans.

Ch. 167Everyone Is Preparing

Franz expanded Austria’s army and reserves to take advantage of its battle-hardened veterans, while Russia and the Ottoman Empire prepared for a possible war. The chapter left the Sultan’s government anxious and claiming it could rapidly mobilize a large force despite the Ottoman Empire’s deep military weaknesses.

  • Franz raised Austria’s 1851 military budget to 112 million florins, expanded the active army to 512,000, and set a goal of training 350,000 reservists.
  • Nicholas I learned of Austria’s military preparations and accepted that Austria might join Russia’s moves against the Ottoman Empire or pursue its own aims in South Germany.
  • Nicholas I regarded Austria as a partner that could share pressure from other powers, while Russia and Austria planned to act separately in their respective spheres against the Ottomans.
  • Abdulmejid I asked what Britain and France would do, and his Foreign Minister reported Britain had promised support if another Russo-Turkish war began.
  • Abdulmejid I asked about Ottoman preparations, and the War Minister claimed the army had reached 530,000 men and could grow to 800,000 within three months.

Ch. 168Strategic Deception

Britain feared that a Russian-Austrian attack would destroy the Ottoman Empire and threaten British interests, while France’s political instability limited its ability to help. Louis-Napoleon saw an opportunity to win British support, as Austria’s deception successfully convinced European powers that its military preparations targeted the Balkans rather than the west.

  • Palmerston warned John Russell that Russia and Austria might cooperate against the Ottoman Empire, risking Russian control of the Black Sea Straits.
  • John Russell urged the Foreign Office to act if Russia and Austria joined forces, while Britain remained unwilling to enter the war directly.
  • Louis-Napoleon Bonaparte recognized that Britain might support him in hopes of restoring a stable French Government before the coming war.
  • Austria reinforced its apparent Balkan ambitions through troop deployments, public messaging, and supply shipments, concealing its true objective from most Austrians and foreign powers.
  • Britain, France, Prussia, and Switzerland were misled into believing Austria planned to target the Ottoman Empire, and European publics waited for the conflict to begin.

Ch. 169Development

Austria’s economy and railway construction expanded rapidly in 1850, boosting government revenue and creating opportunities for private investors. Franz used the boom to consolidate the steel industry and profit from sand and gravel supplies, while railway speculation continued to grow.

  • Austria’s economy grew by 18.7 percent in 1850, and tax revenue rose by 9.4 percent as factories and supporting industries expanded.
  • The Austrian Government granted railway companies tax exemptions and sold them rights to more than 40,000 kilometers of routes, encouraging investment and speculation.
  • The Austrian Ministry of Industry merged seven state-owned steel enterprises into the Austrian Steel Group and funded its expansion and research.
  • Franz arranged control of railway construction’s sand and gravel supply through Austrian Mining Group, earning an annual profit of 1.23 million shield.

Ch. 170Money Makes Things Easy

Motrich pushed the Austrian Federal Railway Company’s staff to finish the railway connection to Adning in one year instead of two, promising higher pay and bonuses. Salvador accepted the accelerated plan but warned that it required more labor, machinery, and technical staff, while he struggled with the heavier workload and considered a more stable job.

  • Motrich announced that the board had ordered the railway connection to Adning completed within a year, and Salvador said the existing two-year schedule could not be shortened without major changes.
  • Motrich promised extra pay and bonuses, and explained that earlier operations would increase profits and satisfy the government’s demand to accelerate trunk-line construction.
  • The company decided to focus resources on trunk lines, suspend branch-line preparations, and award stock options to technical staff.
  • Salvador agreed to the decision but asked Motrich to secure more labor and machinery and curb the managers’ treatment of prison laborers.
  • Motrich said he would request additional resources and staff, while Salvador took on responsibility for more construction sites and considered seeking a position at the Ministry of Railways.

Ch. 171Tobacco and Alcohol Monopoly System

Austria assessed the growing Near East crisis and prepared for a possible Russo-Turkish War while keeping its plans secret. Franz approved a Tobacco and Alcohol Monopoly System to raise additional funds for the coming conflict.

  • Metternich argued that Russia was unlikely to abandon its goals in the Ottoman Empire, and Prime Minister Felix warned that the timing and scale of war remained uncertain.
  • Radetzky questioned whether Austria should wait for France to join the war, while Felix argued Britain could draw France into action.
  • Franz said Austria’s strategy depended on secrecy and proposed misleading the Ottomans into thinking Austria only sought the Danube basin.
  • Karl proposed a Tobacco and Alcohol Monopoly System to fund the coming war and estimated it could raise at least 35 million shield annually.
  • Franz approved legislation to implement the monopoly system, and Prime Minister Felix agreed to proceed.

Ch. 172France Enters the Fray

After France intervened in Jerusalem, Franz and Metternich considered how the resulting alliances could threaten Austria with a future war. Franz decided Austria should avoid attracting suspicion while it pursued its westward strategy and integrated South Germany.

  • Russia appointed Duke Alexander Menshikov as a special envoy and sent him to Constantinople after he inspected troops and the Black Sea Fleet.
  • Franz authorized Mestsel to handle Austria’s negotiations with the Ottoman Empire while he went fishing at Schönbrunn Palace.
  • Metternich told Franz that France had intervened in Jerusalem and that the Catholic Church hoped for Austria’s support.
  • Franz declined to offer more than verbal support, reasoning that France would not welcome Austrian involvement in its bid for prestige.
  • Metternich warned Franz that Louis-Napoleon Bonaparte’s restoration could strengthen an Anglo-French alliance and make a future Austro-French war more likely.
  • Franz concluded that Austria should restrain itself to avoid alarming other countries while it prepared to integrate South Germany.

Ch. 173Loli Raising Plan

Russian and Austrian representatives divided their Balkan spheres of influence during negotiations with the Ottoman Empire, then clashed with British representative Joseph Edward and suspended the talks. In Vienna, Franz welcomed Princess Helen and Empress Sisi from Bavaria, and the visit ended with two more girls staying at the palace.

  • Menshikov and Mestece agreed to divide Russian and Austrian commercial zones in the Balkans, angering Pasha Herdegle.
  • Joseph Edward challenged Menshikov's claim that Russia led the civilized world, and Mestece prevented their argument from becoming a duel.
  • Franz hosted Princess Helen and Empress Sisi at a welcoming banquet in Vienna while reflecting on Sisi's difficult future at court.
  • Franz danced with both cousins and spoke with them before they stayed at the Vienna palace.

Ch. 174The Vanishing Nation

Russia pressured the Ottoman Government over its foreign minister and Orthodox Christians, pushing Britain to consider how to draw Austria away from Russia. Meanwhile, Austria’s military recruitment surged and its language policies weakened Hungarian nationalism, leaving Fikvenna struggling to preserve Hungarian instruction.

  • Menshikov forced the Sultan's Government to replace Fuad with Rifat and demanded that Russia gain authority over Orthodox believers in the Ottoman Empire.
  • Palmerston urged John Russell to secure Austria's support against Russia, but concluded that Austria would switch sides only if Russian power threatened it.
  • Austrian recruitment lines grew as people sought military merit, while Welston was told to prioritize applicants who spoke Austrian language.
  • Fikvenna confronted Principal Engels over the Hungarian National School making Hungarian a paid elective, and Engels explained that government funding required Austrian language to be the sole compulsory language of instruction.

Ch. 175Only Interests Are Eternal

Fikvenna saw how the suppression of Hungarian language and culture had left the Hungarian National School without support, while former allies like Hanks embraced Austria’s policies for profit. He agreed to consider registering his struggling newspaper in Austrian, showing how even moderates were adapting to the new order.

  • Fikvenna attended a gathering at the deserted aristocratic club, where Liszt’s performance drew a crowd but few potential supporters for the Hungarian National School.
  • Hanks told Fikvenna that he had profited by stocking strategic materials ahead of Austria’s expected move against the Ottoman Empire.
  • Fikvenna warned Hanks that Austrian language policies were destroying Hungarian newspapers, books, and education, but Hanks defended unification as beneficial to Austria and its economy.
  • Fikvenna reflected on how the revolution’s defeat and its costs had turned Hungarians against revolutionaries and weakened support for national independence.
  • Hanks offered to help Fikvenna keep his newspaper by registering it with the Press Bureau and switching it to Austrian, and Fikvenna nodded.

Ch. 176Industrial Regulation

Franz addressed uneven regional development and ordered a nationwide agricultural report with regional pilot programs for cash crops. He also decided to limit Vienna’s industrial growth and pollution, leaving Felix to carry out the new restrictions.

  • Franz asked Felix why water conservancy investments were concentrated in the plains, and Felix explained that the population and demand were greatest there.
  • Franz ordered a nationwide agricultural production report and proposed regional cash-crop pilots, including raw silk production in the Italian region.
  • Franz told Felix to divert new factories from Vienna, prohibit factory approvals there for five years, and review operating factories for pollution.
  • Felix questioned whether government intervention and pollution controls were necessary, and Franz warned that industrial wastewater could contaminate a city’s water supply.
  • Felix accepted Franz’s instructions after hearing his explanation of the risks pollution posed to Vienna.

Ch. 177Countdown

Austria’s negotiations with the Ottoman Empire over Moldavia and Wallachia were pushed toward deadlock while Louis-Napoleon Bonaparte seized power in Paris. Russian and Ottoman positions remained irreconcilable, and the chapter ended with another Russo-Turkish war drawing near.

  • Abdulmejid I rejected Austria’s demands for Moldavia and Wallachia, but asked Mestece what Austria would pay for them.
  • Mestece offered one hundred million shields paid over a century, then made broader territorial demands to ensure the talks failed.
  • On June 12, 1851, Louis-Napoleon Bonaparte launched a coup in Paris, dissolved Parliament, and defeated the parliamentary faction’s resistance.
  • Franz accepted the coup as an expected shift in the balance of power, while British pressure eased and France sent military instructors to help the Ottoman army.
  • On July 23, 1851, Anglo-Russian negotiations in Saint Petersburg failed, bringing a new Russo-Turkish war closer.

Ch. 178Napoleon III

Louis-Napoleon Bonaparte exploited public support and political rivalries to proclaim himself Napoleon III, while Franz assessed the precarious foundations of the new empire. In Vienna, Franz agreed to use the need for Austria’s diplomatic recognition to encourage tensions over the Holy Places Question, while preparing to reassure Britain and France that Austria would remain neutral in a Russo-Turkish War.

  • Louis-Napoleon Bonaparte changed France’s constitution, courted the public and army, and secured an overwhelming referendum victory for imperial rule.
  • Louis-Napoleon Bonaparte proclaimed himself emperor on January 1, 1852, and the Bourbon Dynasty accepted the fait accompli.
  • Franz judged that Napoleon III’s political skill had overcome the Bonaparte Family’s weak foundations and the opposition of rival royal houses.
  • Metternich proposed using Napoleon III’s need for international recognition to seek a friendship treaty between Austria and France.
  • Felix noted that Napoleon III’s imperial dignity would make him unlikely to yield on the Holy Places Question, potentially troubling Russia.
  • Franz ordered Austria to add fuel to the crisis while preparing to assure Britain and France that Austria would offer Russia no more than diplomatic support.

Ch. 179The Price

Nicholas I rejected Napoleon III’s legitimacy and ordered Russia to prepare an ultimatum against the Ottoman Empire as the prospect of war grew. Meanwhile, Napoleon III faced a spreading uprising and a worsening fiscal crisis in France, which he sought to address by negotiating with financial groups.

  • Nicholas I ordered Karl Vossel to send France a diplomatic note condemning Napoleon III’s restoration and demanding his abdication.
  • Karl Vossel told Nicholas I that the Constantinople negotiations had failed, and Nicholas ordered Duke Menshikov to deliver an ultimatum to the Ottoman Empire.
  • An anti-imperial uprising spread from Paris to more than twenty French provinces, and Napoleon III imposed martial law and had thousands arrested or exiled.
  • Napoleon III’s raises, tax cuts, and expanded civil service strained France’s treasury, while financial difficulties forced him to shelve plans to expand the army.
  • Napoleon III asked Rouher how to resolve the fiscal crisis, and Rouher advised negotiating for support from France’s financial groups.

Ch. 180Near East War Erupts

Russia and Austria declared war on the Ottoman Empire, and the Sultan accepted British and French military help despite the loss of Ottoman control it would bring. Russian and Austrian troops entered the Danube basin, where Moldavia and Wallachia surrendered.

  • On March 27, Russia declared war on the Ottoman Empire, and Russian forces began their attack the next day.
  • At a Vienna conference, Franz, Metternich, Felix, and Marshal Radetzky decided Austria would enter the Danube basin while concealing its Western Advance Strategy.
  • On March 28, Austria declared war on the Ottoman Empire, and Abdulmejid I declared war on both Russia and Austria.
  • Abdulmejid I agreed to British and French terms allowing their military instructors to serve as commanders in exchange for faster reinforcements.
  • Russian forces attacked the Caucasus on March 28 and the Danube basin on March 29, as Austrian troops entered the basin.
  • Moldavia and Wallachia surrendered to the Russian and Austrian forces without resistance.

Ch. 181Ottoman Empire Crisis

Britain and France debated how to support the Ottoman Empire as Russia and Austria waged war, while Napoleon III pressed Britain to join the fighting. The Balkan Treaty gave Russia a route and supplies for its advance, leaving the Ottoman Empire facing an immediate threat to Bulgaria and its capital.

  • Queen Victoria convened a meeting, and John Russell said Britain planned to support the Ottoman Empire alongside France while treating Austria as a secondary concern.
  • Napoleon III urged Britain to send troops and warned that the Ottomans could soon be defeated if left to face Russia and Austria alone.
  • Napoleon III insisted Russia and Austria could not cooperate sincerely because Austria would fear Russian control of the Black Sea Straits.
  • On April 11, 1852, Russia and Austria signed the Balkan Treaty, transferring Moldavia and Wallachia to Austria in exchange for passage rights and logistical support for Russian troops.
  • Two hundred and fifty thousand Russian troops marched along the lower Danube toward Bulgaria, while Bulgarians prepared to welcome them and other Ottoman peoples grew restless.
Arc 7 of 47