Chapter Summaries

Minister Tom authorized funds for a deeper investigation into Colombia’s canal project, while Nino decided to recruit the United States of America and Spain as partners against Austria. Nino’s first approach to Morgan failed, leaving him without the consortium’s support.

• Minister Tom ordered Secretary Disifu to investigate Austria’s activities and Colombia’s canal project, then approved ten thousand francs for the work.
• Nino concluded that the United States of America had strong economic and strategic reasons to support the canal and sailed there to recruit partners.
• Nino visited the Morgan Estate and argued that canal control could help the Morgan Consortium overcome local protectionism.
• Morgan refused to participate, citing the Union’s limited 21% share, the investment risks, and the threat of Austrian influence in Panama.

French financiers planned to exploit the Panama Canal project by promoting it to investors despite doubts that it could succeed, while Morgan recognized the scheme and chose to cooperate. Franz agreed to let Austrian consortia join the venture but barred the canal company from listing in Austria.

• At a Paris private club, Bells persuaded French financial magnates to secure the canal rights, package the project, and draw in British and Austrian capital despite Old Duke's warnings about its prospects.
• In New York, Morgan saw that the French sought American and Spanish participation mainly to prevent Austria from obstructing the venture, and he decided to cooperate for profit.
• At Vienna Palace, Franz reviewed the intelligence and allowed Austrian consortia to cooperate with France, but forbade the Panama Canal company from listing in Austria.
• Franz left further negotiations and the division of profits to the participants, while Austria's strict securities rules made a domestic listing unlikely.

British commander Ismail sought reinforcements after Ethiopian forces inflicted heavy losses, while Napoleon IV weighed a French plan to develop the Panama Canal. Minister of Finance Allen persuaded him to let private capital lead the project, though Allen intended to leave the risks to others.

• Ismail blamed France and Austria for Ethiopia’s modern weapons and training, then concluded that his forces needed reinforcements to win.
• Napoleon IV focused on France’s slowing economy and rejected Allen’s claims that the Panama Canal would boost French exports, citing the risk of strengthening the United States.
• Allen argued that French control of the canal could give France leverage over trade throughout the Americas and proposed having private capitalists lead the project.
• Napoleon IV was persuaded by Allen’s proposal, while Allen privately resolved not to take responsibility for the risky venture.

France obtained the rights to develop the Panama Canal, while President Nino pushed the risky project toward construction and an IPO despite its costly conditions and labor shortages. In London, Prime Minister Benjamin confronted inflated British battle reports and received revised casualty figures.

• Minister Tom secured French authorization, and France obtained the Panama Canal development rights from Colombia in exchange for material aid.
• Nino organized a survey and examined findings that exposed Panama's difficult terrain, disease risks, and likely construction costs.
• Secretary Ralph told Nino that Colombia had refused to provide workers, and Nino ordered further negotiations while directing him to share survey data with the board but omit disease risks.
• Prime Minister Benjamin challenged a telegram claiming Britain had annihilated two hundred thousand enemy troops while losing a fifth of its forces.
• Secretary of State for War Fox said the telegram likely contained an extra zero and reported 5,876 British casualties and 15,796 enemy soldiers killed.

Benjamin’s cabinet concealed the British defeat in Ethiopia by blaming France and Austria and using the Panama Canal dispute to divert public attention. Franz declined to seize more Ethiopian territory and approved the French canal company’s request to recruit 200,000 laborers from Austria’s African colonies.

• Benjamin’s cabinet accepted Fox’s revised battle report, announced British victory claims, and ordered reinforcements of 80,000 troops for Ethiopia.
• Edward told Benjamin that France had obtained Panama Canal development rights, and Benjamin decided to accuse France publicly to distract the British public from the Ethiopian losses.
• Franz declined Stephen’s proposal to seize more Ethiopian territory before British reinforcements arrived, saying he wanted to test Ethiopia’s strength against Britain.
• Wessenberg reported that the French canal company offered 30 Divine Shields per laborer to import 200,000 workers from Austria within three years.
• Franz approved the French proposal and ordered the laborers recruited from the Somali Peninsula and other regions as needed.

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.