Chapter Summaries

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.

Napoleon IV weighed Russian and Prusso-Polish Federation appeals for French support, determined to prevent either rival from becoming too powerful. As Russian Crown Prince Alexandrovich avoided a public meeting with William I, Prussian envoy Jeffrey Friedman tried to convince France that Austria posed a growing threat.

• Foreign Minister Dumbledore told Napoleon IV that the Russian delegation had canceled its London visit and would arrive in Paris in three days.
• Napoleon IV said France would consider an alliance with the Prusso-Polish Federation only after it defeated Russia, and he insisted that neither Russia nor Prussia could be allowed to grow strong.
• Crown Prince Alexandrovich refused to attend the welcoming banquet with William I, and the two leaders avoided appearing together in Paris.
• At Versailles, Jeffrey Friedman handed Dumbledore intelligence about Austria and argued that its growing strength threatened France as well as the Prusso-Polish Federation.

Jeffrey Friedman tried to persuade French Foreign Minister Dumbledore that Austria threatened France, but Dumbledore rejected his arguments and warned that the Prusso-Polish Federation was also a potential rival. On the way back, Jeffrey concluded that the Federation’s war with Russia would leave it vulnerable to the united great powers, while McPhee urged him to defeat Russia and wait for divisions among the alliance.

• Dumbledore dismissed Jeffrey Friedman’s documents as exaggerated and rejected his claims about Austria’s military strength.
• Jeffrey argued that Austria’s growing population, economy, and armed forces threatened France, but Dumbledore insisted France could defend itself and warned that the Federation might become its rival.
• On the way back to the embassy, Jeffrey told Lieutenant General McPhee that Dumbledore’s blunt warning showed the United Kingdom, France, and Austria had deeper disagreements than expected.
• Jeffrey said the Federation would face the three great powers’ combined suppression if it defeated Russia, though neither the Federation nor Russia could end the war because their interests and grievances made reconciliation impossible.
• McPhee urged Jeffrey to focus on defeating Russia and trust that future divisions within the Anglo-French-Austrian Triple Alliance would give the Federation an opportunity.

France declined to take action against Austria despite growing concern about its military, while Russia and Austria completed negotiations over Russian loans and collateral. The Russian-Austrian agreement was signed in Vienna, followed by Austria guaranteeing Russia’s debt to the Nordic Federation.

• Dumbledore concluded that France would not restrain Austria or support the Prusso-Polish Federation without a worthwhile exchange of benefits.
• Wessenberg rejected Russia’s proposed collateral as inadequate, and Nikolayevich offered additional ports while seeking Austrian guarantees on loans and Black Sea access.
• Wessenberg agreed that Austria’s navy would stay out of the Black Sea as long as Russia did not default, but demanded security for the debt guarantee.
• Russia and Austria signed the Russo-Austrian Trade Agreement in Vienna on October 10, 1879, with Russia mortgaging territories and raising 480 million Divine Shield.
• A week later, Russia, Austria, and the Nordic Federation signed a contract in Saint Petersburg under which Austria guaranteed Russia’s debt to the Nordic Federation.

Franz funded the Russian Empire as the European powers chose sides, while Alexander II and the Prusso-Polish Federation prepared for war. The chapter ended with Moltke presenting a plan to drive the fighting toward the Dnieper River and cut off Russian supply routes.

• Franz ordered 100 million Divine Shield transferred to the Russians to support their war preparations.
• After hearing Alexandrovich's assessment of Britain, France, and Austria, Alexander II decided to declare war, and Paladru Wald reported that Russia had mobilized 1.68 million troops.
• Moltke showed William I the Russian deployments and explained the General Staff's plan to advance from Poland toward the Dnieper River before winter.
• Moltke identified cutting the Dnieper's waterborne supply route as a key goal for weakening Russian forces at the front.

Franz learned that the Second Prusso-Russian War had begun and assessed its consequences for Austria and the European balance of power. In France, Napoleon IV discovered that the war was drawing investment away from the African development plan, threatening a key part of the French economic strategy.

• Franz returned to the palace after learning that Russia and the Prusso-Polish Federation had declared war on each other and convened a cabinet meeting.
• Wessenberg reported that William I had mobilized males aged fifteen to sixty, while Felix warned that Prussian and Polish ambitions could threaten Austria.
• Franz predicted a prolonged war between evenly matched opponents and dismissed the immediate danger of a secret Prusso-French pact.
• Wessenberg reported that Prussia had sold its overseas possessions to France, raising suspicions of a secret agreement directed against Austria.
• Elsa warned Napoleon IV that French investors would favor war industries over North African colonies, imperiling the African development plan.
• Napoleon IV lost his good mood when he realized that the war could undo France's efforts to attract investment to Africa.

British leaders debated an army expansion as the Prusso-Russian War reshaped international priorities. They deferred the decision and turned to how Britain could profit while France and Austria focused on Europe, leaving South America open to British plans.

• War Secretary Fox urged Prime Minister Benjamin to expand the army for European and colonial needs, while Chancellor Garfield argued Britain should rely on diplomacy and its maritime strength.
• Fox cited rising pressure in India and plans against Afghanistan and Persia, but First Lord John Vassil argued the navy and marines could handle overseas missions and that Britain had time to wait.
• Benjamin set the army dispute aside for Parliament and convened the ministers to discuss the Prusso-Russian War and its global consequences.
• Foreign Secretary Edward predicted the war would devastate Prussia and Russia but leave Britain largely untouched, while Colonial Secretary Robert said France and Austria's focus on Europe would let Britain advance its plans in South America.

Marshal Moltke confronted the Prussian commanders over their stalled advance at Brest and ordered them to find a way to break through Russian defenses before winter. In private, he revealed that the Brest attack was meant to draw Russian forces while the Southwestern Army explored a breakthrough through Volhynia to encircle them.

• Moltke arrived at the front and saw that Russian artillery and resistance were stronger than he had expected.
• Moltke berated the commanders because the Prussian army had failed to capture Brest after a week of fighting, and Hohenlohe-Ingelfingen described the Russian strength and the Southwestern Army's losses.
• Moltke insisted that the army seize Kyiv and cut the Dnieper route before winter, ordering the commanders to find a way around Brest's defenses or sabotage the river channel.
• Hohenlohe-Ingelfingen argued that cutting the Dnieper would not deprive Russia of supplies and urged the army to focus on Moscow and Saint Petersburg, but Moltke told him to carry out his orders.
• Moltke privately explained that he had withheld the broader plan because of espionage risks and said the army might break through Volhynia and encircle Russian forces at Brest.

Franz and Albrecht discussed how the Prusso-Polish Federation might fight Russia, weighing a cautious defense against a risky naval strike on Saint Petersburg. Franz then learned Britain was preparing to aid Chile against Peru and Bolivia and ordered Austria to abandon its South American arrangements unless its interests were directly threatened.

• Franz studied the Russian deployment and asked Albrecht how Moltke should fight the war.
• Albrecht recommended defending Smolensk through the winter and suggested that a fleet-assisted surprise attack on Saint Petersburg could force Russia into a decisive battle.
• Franz rejected the naval attack as impractical, citing Prussian army-navy rivalry, the difficulty of keeping a fleet purchase secret, and Britain's and France's reluctance to intervene directly.
• Albrecht noted that making the navy essential to victory would make it harder for the Prusso-Polish Federation to suppress naval expansion afterward.
• Wessenberg reported that Britain's Pacific Ocean Fleet's Second Squadron was heading toward South America, likely to blockade Peru and Bolivia and help Chile.
• Franz decided Austria would abandon its South American arrangements unless its interests were directly harmed.

The Prussian Twenty-Second Division suffered heavy losses attacking Kovel, and Major General Luke suspected the Russians were deliberately drawing them into battle. At Russian headquarters, Major General Yadon-Ivanov praised the attrition strategy while Fike warned that it could exhaust his division too.

• Luke watched the Prussians and Russians fight a bloody bayonet battle, then learned the Twenty-Second Division had suffered 774 casualties in one day.
• Luke requested heavy artillery and told General Headquarters that his division could not guarantee taking Kovel without it, but Pasqualino said support might not arrive for four weeks.
• Luke and Pasqualino concluded that the Russians were inviting attacks to gain battle achievements while their second-line troops held Kovel.
• Yadon-Ivanov praised Fike's suggestion to lure the Prussians into attacking, while Fike warned that the near one-to-one casualty exchange could wear out Yadon's division.
• Yadon-Ivanov said he accepted the losses as a necessary sacrifice for victory, despite recognizing that Fike's advice might serve Austria's interests.

Franz’s staff debated the purpose of a Prussian division’s advance toward Pinsk while Austria watched the Prusso-Russian War from the air. After Britain detained ships bound for Peru and Bolivia, Franz backed a campaign to pressure Britain, and the chapter left Prime Minister Benjamin facing protests at home and diplomatic pressure from abroad.

• Austrian airship reconnaissance spotted a Prussian division bypassing Kamen and advancing toward Pinsk, prompting Franz to ask his staff to assess Moltke’s objective.
• General Morkes argued that the Prussians were likely targeting Brest, while other staff officers proposed alternative explanations and debated the risks.
• Foreign Minister Wessenberg told Franz that Britain had detained more than two hundred ships bound for Peru and Bolivia, including forty-five registered in Austria.
• Franz ordered Austria to demand the reopening of sea routes and compensation, and to rally other countries and France to pressure Britain.
• European capitalists and newspapers mobilized against the blockade, while protesters gathered outside the Prime Minister’s residence in London.
• Prime Minister Benjamin ordered the government to blame Chile for the detentions as Foreign Minister Edward warned that protests from twenty-two countries had created serious international pressure.