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Next, the point of contention between the parties was the restoration of the Pope Country's territorial status before the last war. Located in the central Apennine Peninsula, once its previous territory is restored, it could bisect Italy.

Friedrich: "The Pope Country holds a transcendent position, yet the Kingdom of Italy has continuously encroached upon its territory through various conspiracies and tricks. We should place the Pope Country in a special position; it does not participate in international affairs, and no country should invade it, or else the invader becomes an enemy of God, and anyone has the right to eliminate them."

This essentially turns the Pope Country into a vase or a permanent neutral state, which does not affect other countries. Only the forces within Italy desiring unification would be affected, as if a fishbone is stuck in their throat, causing discomfort.

Gamoer naturally opposed: "The Kingdom of Italy does not recognize the existence of the Pope Country; it merely serves as a puppet for the Austro-Hungarian Empire."

Friedrich: "Even being a puppet is better than being annihilated by a wicked country like Sardinia! Is this how your Sardinia Kingdom treats the Pope, and God's stance?"

Once religious issues are involved, the Austro-Hungarian Empire gains an advantage, given the Pope Country still influences some believers worldwide.

Seeing the two are about to argue again, Count Granville said: "Alright, since there is disagreement, let's proceed with analyzing and discussing each point."

The Austro-Hungarian Empire's ideal state for Italy was to dismember it, while reclaiming the Venice-Lombardy region. Italy's stance no longer mattered; now, it depended on the attitudes of England and Russia.

England had interests in the Sardinia Kingdom, hence hoped to maintain the integrity of the Kingdom of Italy. But expecting the Austro-Hungarian Empire to cease hostilities and allow Italy unification was impossible. The British themselves wouldn't allow Lobster Soldiers to land and fight against the Austro-Hungarian Empire, especially now, with Italy on the brink of defeat; it's best to let the Russians play the villain.

Thus, Count Granville addressed the Russian Minister of Foreign Affairs: "Mr. Gorchakov, what is your perspective on this matter?"

Gorchakov: "I don't have much opinion. However, I believe the integrity and unity of the Kingdom of Italy should be respected, and we support the Kingdom of Naples' independence."

Supporting all is also opposing all. Gorchakov didn't mention the Pope Country because, given his faith considerations, he wouldn't speak favorably for the Pope Country; it's better for it to perish soon and let the Eastern Orthodox Church gain discourse power over Christianity.

As for expressing goodwill towards the Kingdom of Naples, it's naturally because the Kingdom of Naples' independence is unlikely to change, unless a country truly wages war against the Austro-Hungarian Empire, which could be England, France, or even Prussia, but definitely not Russia.

Russia, although very angry at the Austro-Hungarian Empire, would never start a conflict over Italy, especially now that the Kingdom of Italy has become virtually extinct, and the Kingdom of Naples has already been restored. The Kingdom of Italy's value has greatly diminished, with a complete Italy barely restricting the Austro-Hungarian Empire, while a divided Italy would be easily defeated by it. Even if Russia sent troops, it likely wouldn't alter Italy's current situation much, at most hurt Hungary and Czechoslovakia in the east. If Russia did this, Austria would likely not be alarmed but pleased; the existence of Russia is one of the foundations for the Austro-Hungarian Empire's continuation. Even if successful, the final result wouldn't end up in its hands but would let the British reap benefits.

Thus, intervention in Italy for Russia is a thankless task, and Gorchakov paid no mind to Britain's provocations. To truly assist Italy, one still needs to observe Britain's attitude.

Seeing Gorchakov's indifference towards the Kingdom of Italy, Count Granville was helpless. Coincidentally, France had already been incapacitated, temporarily powerless in Italy, so surely Britain won't do it!

Count Granville still understood that the Austro-Hungarian Empire had become the biggest winner this time, and it was a matter of winning big or small. Since the Austro-Hungarian Empire couldn't be stopped, efforts should be made to minimize its gains.

Count Granville: "The Kingdom of Italy should bear a lot of responsibility for this war, but the Austro-Hungarian Empire is not without fault. Originally, the war could have been completely avoided; I think it's best for both countries to take a step back, given the current state of the war, the outcome is already clear."

By saying this, Count Granville, representing Britain, acknowledged the Austro-Hungarian Empire's victory in this war but still wanted to fight for the Kingdom of Italy somewhat.

Friedrich: "We can compromise, but at most, Sicily can remain within the Kingdom of Italy, but that's all there is to it."

The people of Sicily were already opposed to the Kingdom of Naples' rule, so this could be abandoned. If not for the Austro-Hungarian Empire's agitation and pressure on the Kingdom of Italy, the Kingdom of Naples wasn't planning to take this hot potato.

Gamoer: "The Austro-Hungarian Empire lacks sincerity for peace; Sicily is already under our control, so it can't be a negotiating condition."

Friedrich: "Ha, now the initiative of the changing war situation is in our hands; if we want to further dismember Italy, no one can stop us."

Friedrich's words incited opposition from England and Russia, but they also realized that if the Kingdom of Italy didn't surrender soon, even Sardinia might cease to exist. Although Italy's situation was already quite dire, it still had a comprehensive advantage compared to the Pope Country and the Kingdom of Naples.

Count Granville stated: "Venice can revert to the Austro-Hungarian Empire, but not Lombardy. The Kingdom of Naples should no longer merge with Sicily, nor should it ever restore the Two Sicilies Kingdom; the Pope Country remains unchanged."

Friedrich: "Lombardy must return to the Austro-Hungarian Empire, and the Pope Country's demand to regain territory in the east is reasonable."

Gamoer: "No! Lombardy and Venice are integral territories of the Kingdom of Italy; we resolutely oppose Austro-Hungarian Empire's hegemony and aggression."

Friedrich shrugged and said: "Count Granville, you see now; it's not that our Austro-Hungarian Empire doesn't want to negotiate. Given the choice Italy has made, don't blame us for continuing the war!"

Count Granville sternly threatened Gamoer: "Italy, as the instigator of the war, should accept punishment and stop being so ungrateful."

In essence, Count Granville still defended the Kingdom of Italy, but Italy also needed to cooperate. Italy lost this time, and lost. If Italy hadn't performed poorly on the battlefield, Britain wouldn't have been so passive. Therefore, Italy could only accept British mediation and the defeat's outcome.

Count Granville said to Friedrich: "Venice can be given to your country, but Lombardy absolutely cannot return to Austria; this is Britain's bottom line."

Friedrich bargained: "Lombardy doesn't need to fully return to the Austro-Hungarian Empire, but the eastern third must accept Austro-Hungarian rule."

This promised benefit to the Hungarians, of course, needed to be secured. After careful consideration, Count Granville agreed to this point.

Thus, through Anglo-Austrian consultations, the Italo-Austrian war ended, and the Austro-Hungarian Empire gained Venice and a third of Lombardy, the Pope Country regained territory along the eastern Adriatic coast, and the Kingdom of Naples gained independence and international recognition.

As for the Kingdom of Italy, under British threats, it was forced to sign the peace agreement. In essence, Britain protected the Kingdom of Italy, Sardinia, Sardinia Island, Sicily Island, and most of Lombardy within the Kingdom of Italy's borders, making it still the primary power in the Italian region.

The meeting was held in Birmingham, England, so the "1871 Peace Agreement between the Kingdom of Italy and the Austro-Hungarian Empire" is also known as the "Birmingham Peace Agreement."