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AUSTRIA FAVOURS AUGUSTENBURG

local government, was 4,500,000, and their share of the Danish debt was 1,000,000; there remained, therefore, only 1,000,000 for the civil list, the army, the fortresses, the navy, and the charge of the central Government. Nothing was left for the future development of the country or the creation of a German fleet, and the only advantage would be that Germany would possess thirty sovereigns instead of twenty-nine. On the other hand, annexation with Prussia would extinguish the expense of the civil list, diminish that of the central Government, give Germany additional 10,000 combatants in peace and 30,000 in war from every million of inhabitants, and make it possible to lay the foundations of a German fleet. For these reasons annexation would further the interests of the Duchies, of Prussia, and of Germany.

Station at

Unfortunately, these facts were unknown or unrecognised by Prussia the population. They had sworn allegiance to the Duke of Establishes Augustenburg, whom they regarded as their protector from the her Naval hated domination of the Danes, were satisfied with their local independence, and had no desire to become part of a great nation. An address in favour of annexation to Prussia slowly obtained 200 signatures, but a similar address in favour of Augustenburg was speedily signed by 50,000 persons, of whom four-fifths came from Holstein. His Highness Duke Frederick VIII. was the darling of the people. Austria took advantage of this feeling by encouraging the Augustenburg agitation in the Duchies, and endeavoured to induce the smaller German States, who were, naturally, in favour of it, to bring about a division of the Bund in the same sense. This step was contrary to the agreement of January 16th, 1864, and it became necessary for Prussia to do something. Therefore, on March 24th, 1865, King William ordered the naval station of Prussia to be transferred from Dantzig to Kiel.

Policies.

Austria, however, pursued her course in spite of the warning Divergence of Bismarck that they were following gradually diverging lines. of Austrian The Bund passed a resolution in favour of Augustenburg, and and Prussian Austria protested against the establishment of the naval station at Kiel. Bismarck replied, somewhat ungraciously, that there was no reason why Austria should not follow the Prussians' example and transfer their station from Pola to Kiel if it pleased them. Bismarck now proposed that the local parliament of Schleswig-Holstein should be summoned to discuss the situation, but Austria imposed conditions for its meeting which could not be accepted. Excitement in the Duchies became more intense,

Convention of Gastein.

and at last Bismarck found himself obliged to face the question of a war with Austria. A Council to discuss the question was summoned at Berlin on May 29th, at which the Crown Prince Frederick and Moltke were present. The alternative was the annexation of Schleswig-Holstein, which would certainly bring about a war with Austria, or the recognition of Augustenburg, who was known to be friendly to Prussia and would accept the conditions which she proposed. The King was in favour of the first course, the Crown Prince of the second. Bismarck was convinced that war was inevitable, but did not wish it to take place immediately. Ultimately it was decided that no steps should be taken likely to provoke war, and that another attempt should be made to arrive at an understanding. Austria was not anxious for war, and she knew that France was well disposed to Prussia.

Accordingly, prolonged discussions took place in which the differences between the two Powers became more and more accentuated, until at last a compromise was arrived at by the Convention of Gastein on August 14th, 1865. This stipulated that the territory in dispute should be jointly administered, Austria being responsible for Holstein and Prussia for Schleswig, Lauenburg being surrendered to Prussia on the payment of a sum of money to Austria, while the rights of Augustenburg were left undecided. Bismarck was certain that war would eventually break out, but accepted the compromise as a temporary expedient. He wished, before war broke out, to secure the alliance of Italy and the neutrality of France. Prussia lost nothing by this arrangement, and Austria gained nothing. On the whole, the Convention was regarded as a triumph for Bismarck, and it brought him some friends in his own country, where the opposition to his policy gradually declined. The South German democrats called a meeting at Frankfort in October to insist upon the investiture of Augustenburg, but it proved a complete failure and very few Prussians attended it. Bismarck appeared to have the Prussian nation at his back.

The arrangements come to at Gastein were known in Paris. some days before their ratification. Mensdorff had given the information to Metternich, and Metternich had communicated it to Drouyn de l'Huys. Public opinion in France was not favourable to what had been done. Austria and Prussia were accused, on the pretext of safeguarding the rights of the population of Schleswig-Holstein, of having forcibly wrested the Duchies from Denmark and of violating the ancient right of the Duchies to

BISMARCK AND NAPOLEON

personal union. The whole of the Parisian press echoed these sentiments, the Revue des Deux Mondes for once agreeing with the Revue Contemporaine.

Goltz, under instructions from Bismarck, did his best to remove these feelings, and succeeded so far that the French Minister spoke of a possible understanding between France and Prussia in case of war, and of the possible compensation which France might receive for the aggrandisement of Prussia. There can be little doubt that Luxemburg was hinted at. At the same time France joined Great Britain in a public denunciation of the Convention.

Bismarck thought it well to have a personal interview with Bismarck the Emperor, and for this purpose travelled to Biarritz on Reassures September 30th and stayed there till October 12th. The day after Napoleon. his arrival he was received in audience by the Emperor, who asked him whether he had given Austria any securities with regard to Venice, and Bismarck said decidedly not. He declared he was opposed to any step which might bring about a European war, and that we must not make opportunities, but let them open of themselves. Napoleon then asked how Bismarck proposed to arrange the question of the Duchies with Austria; he replied that he would give Austria pecuniary compensation for Holstein, to which the Emperor made no objection. With regard to France receiving a compensation for the increase of Prussian territory through the annexation of the Duchies, Bismarck avowed that the addition of a million inhabitants to the existing population of Prussia was of no moment, and must rather be regarded as a pledge for the fulfilment of the mission which events had imposed upon the Prussian State. A strong Prussia would be an assistance to a friendly France, but a weak Prussia would always be seeking for alliances to defend herself against a France of whom she was afraid. For further compensation the Emperor expressed his conviction that they must await the development of events. He hoped the King of Prussia would write to him if any new circumstances should arise, and said it was impossible that France should ever ally herself with Austria against Prussia. When Bismarck returned to Berlin on November 7th he had the firm conviction that France would look upon the aggrandisement of Prussia with no unfriendly eye, and that no difficulties in the development of Prussian policy were to be apprehended from that quarter.

Such is the account of the interview at Biarritz given by Sybel in his famous History of the Founding of the German Empire

Two Great

Protagonists.

In

under William I., but a different story is told by Roloff in the Cambridge Modern History. He says that Napoleon encouraged Bismarck to proceed against Austria, signifying a wish for compensation should Prussia gain fresh acquisitions from the war. answer to this Bismarck made no promise, but seemed to imply that if Prussia improved her position in Germany there would be no objection to France's acquiring new territory, obviously either in Belgium or on the Rhine. Roloff avers that the Emperor was strongly in favour of the alliance between Prussia and Italy, and promised to recommend it in Florence.

Both statesmen parted on excellent terms. Napoleon counted on war in Germany, with France, as arbiter, receiving a share of the spoils. Bismarck was confident of vanquishing Austria with the help of Italy and of then evading the necessity of compensation to France. Henceforth Bismarck and Napoleon are the two protagonists in all European struggles, and a contest, at first secret and then open, began between them which finally ended at Sedan.

CHAPTER IV

THE HEGEMONY OF PRUSSIA

We have seen how Bismarck, by his visit to Biarritz, had assured Italy's Prothe neutrality of France in the event of war between Prussia and posal to Austria. We must now consider how he obtained the alliance of Austria. Italy. Whilst he was still in France the Court of Vienna was surprised by a diplomatic offer from La Marmora. As no regular diplomatic relations had existed between Austria and Italy since 1859, La Marmora sent Count Malaguizzi of Modena as his envoy. He offered to purchase Venetia from the Austrians at the price of 2,000,000,000 lire, or £80,000,000, to make a favourable commercial treaty with Austria, and to treat the Pope with consideration. Malaguizzi spent two months in Vienna and found that his proposals met with favourable consideration. Statesmen doubted whether, in view of the hostility of Prussia, Venetia could remain long in their possession, and merchants rubbed their hands at the proposal of Free Trade with Italy. The Prime Minister liked the prospect of two milliards to restore their shattered finances.

On the other hand, the clergy were unwilling to have any- Bismarck thing to do with an excommunicated sovereign. Austrian officers and Italy. regretted the loss of a pleasant Italian sojourn, and the Emperor was personally opposed to this scheme. But how was the Austrian deficit to be met? Count Larisch sought for a loan in Paris, but Rothschild positively refused to lend anything, and eventually the promise of a large sum was obtained at ruinous interest. The offer of Bismarck to purchase the Duchies put an end to the matter. Austria had already sold Lauenburg, and the proud old Empire was not prepared to barter away one by one the pearls of its diadem. The Emperor gave a decided negative to both propositions. If Italy desired Venetia, she must fight for it. Austria, however, was disposed to treat Italy with consideration and to prefer her friendship to that of Prussia, when suddenly Prussia acknowledged Victor Emmanuel as King of Italy, a step in which she was followed by the whole of the Zollverein, excepting Hanover and Baden, always devoted to the interests of Austria.

In the meantime, friction arose between Gablentz, who represented Austria and Holstein, and Manteuffel, who was

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