Holy Roman Empire

In some sense, the refugee crisis also propelled the progress of the Prusso-Russian War. After replenishing his forces, Maoqi hastily launched a counteroffensive.

There was no choice, if they didn’t fight now, they would be even less capable later. They had hoped the refugees would delay the Russians’ movements, but they hadn’t expected this trouble to follow them all the way back.

The Russians did not immediately launch an assault, not only because they needed to rest their troops, but also because they were constrained by logistics. Ivanov was a cautious commander and was resolute in not rushing into a decisive battle unless the logistics were in place.

No matter how much the Berlin Government tried to rally, the population had already set the upper limit. After losing most of its territory, the Kingdom of Prussia had just over ten million people left, all of whom capable of bearing arms were sent to the battlefield.

In this respect, they couldn’t compare with the Russians; the longer the conflict dragged on, the more it favored the Russians.

Of course, this was only true militarily. Economically, the Tsarist Government couldn’t hold out much longer either. If not for Ivanov’s insistence, the Russian Army would have launched an attack much earlier.

These were the secrets Maoqi could not have known. Even if he had known, it wouldn’t have been of any practical use, since they still had to fight.

The government having no money didn’t mean they couldn’t get any money. In times of crisis, robbing Peter to pay Paul was also a way to deal with emergencies.

The Russian Empire had deep reserves; as long as they were willing to pay the price, they could scrape together the funds needed for several months of warfare.

Maoqi’s efforts were not in vain, as the Prussian Army successively defeated the threatening Tenth Russian Army, the Third and Sixth Russian Armies that had followed the refugees, and inflicted heavy damage on the Eighth and Ninth Russian Armies stationed around the Poznan region.

If one didn’t look at the overall battlefield, no one would believe that the Prussian Army, with such impressive battle records, was actually in its death throes.

In just two short months, Maoqi had caused the Russians over five hundred thousand casualties. As a price for victory, the Prussian Army also suffered nearly three hundred thousand casualties.

With limited differences in the fighting strength of the soldiers, obtaining a 3:5 exchange ratio as the attacking force was tactically impeccable.

Yet tactical victories still couldn’t make up for strategic defeats.

The Russians didn’t just passively take hits; Ivanov set the battlefield in the East Prussia region where the Russian advantage was even more apparent. As for the Russian Army engaging Maoqi, their sole mission was to tie down the main force of the Prussian Army.

On March 18, 1880, the battle of East Prussia ended with a Russian victory, after nearly three hundred thousand casualties were suffered.

This was just the beginning. Having lost the painstakingly managed East Prussia region, West Prussia was also unable to withstand the Russian blade, and the flame of war continued to burn towards the heartland of the Kingdom of Prussia.

…

In the Vienna Palace, putting down the battle report and looking at the map of the Kingdom of Prussia, Franz knew that the Prusso-Russian War should end now.

The Kingdom of Prussia had already been weakened substantially; the Rhineland region sold to the German Federation, the Silesia area to Austria, and Prussian Saxony was also sold off.

Now with the Poznan region falling into Russian hands, the loss of East Prussia, most of West Prussia, and Pomerania turning into a battlefield, the Junker aristocracy’s foundation was severely damaged.

Continuing this war no longer held any relevance for Austria. If they didn’t stop this war now, the Russians would reach the Ode River, which was not what Franz wanted to see.

"What’s the internal situation like in Prussia and Russia?"

To intervene, they naturally needed to understand the respective situations of Prussia and Russia first. Franz had an intelligence organization and had obtained the information early on, but that was something not to be exposed.

An intelligence organization that frequently appeared in the public eye was not in fact an intelligence organization; it would be more suitable as a government department.

Franz had always sought to minimize the presence of the intelligence organization, and except for a few senior government officials and members of the nobility, no one else even knew that the Emperor had a secret intelligence organization in his hands.

Even those who knew didn’t take it seriously, as the organization was too low-profile, low-profile enough to be forgotten.

Over the years, except for collecting intelligence, Franz hardly ever activated this secret organization for missions; it was the exposed and government-flagged intelligence organizations that were responsible for carrying out tasks.

Just like the Jin Yi Wei (Imperial Guards), no matter how important they are or how much they contribute to the country, if they pose a threat to their own interests, the bureaucrats will find a way to crush them if they can’t keep control in their hands.

Creating obstacles and causing trouble is nothing; the real problem is framing, defamation, and then pressure from public opinion, forcing the Emperor to give up.

History told Franz that emperors who compromised on this issue didn’t end up well, no matter whether it was Zhu Yunwen or Zhu Yujian—they were both classic negative examples.

So, you are talking about public opinion kidnapping and moral attacks, right? Well, I’ll just hide the intelligence organization. Normally it won’t show up at all—it will only collect the dirty secrets of domestic bureaucrats and interest groups.

This dirt is the ammunition, and when needed, throwing it out can blast away a large swath.

By comparison, overseas intelligence work is merely a sideline. Collecting some basic information is fine; the real responsibility lies with the overt intelligence organization, which is accountable to both the Emperor and the government.

It’s not only for balance but also a practical necessity. Special agents are high-risk jobs, especially for spying overseas, often requiring the Ministry of Foreign Affairs to intervene for rescue; it’s inevitable to interact with them.

Moreover, during international diplomacy, intelligence is needed for support. To cooperate with each other, the overseas branches of the intelligence organization also fall under the embassies.

Foreign Minister Wessenberg answered, "The situation in the Kingdom of Prussia is very bad. Even after the expulsion of refugees, the lives of ordinary people have been affected, and many have to rely on wild turnips to stave off hunger.

According to messages from the embassies, just this month, the Berlin Government has suppressed eight labor strikes and three revolutions. Right now, the Kingdom of Prussia is like a powder keg.

The Russian Empire is slightly better off. Victories on the battlefield have, to some extent, covered up the crisis, but the domestic labor disputes are very severe.

In the past year, there have been more than a hundred strikes, which are almost catching up to the French.

This past winter, more than fifty cities, including St. Petersburg, experienced varying degrees of supply shortages.

To save coal, residents of St. Petersburg had to join together to cook meals, and many areas saw whole families cramming into one room to keep warm."

Strikes in Russia did not catch Franz’s attention, mainly because there was that anomaly of France, which had already reset his expectations.

It turns out that the French people’s love for strikes has a historical legacy. Even now, in the nineteenth century, the French people have taken to this meaningful activity.

Unlike later times with many challengers, nowadays, France leads the world in labor strikes with a high three-digit number annually; there’s currently no one who can match them.

In all the years since Franz ascended the throne, the total number of strikes in Austria might not even come close to the annual amount in France.

Of course, this is just counting organized strikes involving more than a thousand participants; as for small-scale strikes, no one knows how many happen every day.

That makes sense, after all, France now is a combination of France and Italy, both with rich experience in striking; it’s normal to have a higher number of strikes.

Winter has passed, and the people’s demand for materials is decreasing; the Tsarist Government has survived the most dangerous time.

It’s different for the Berlin Government. The frequent uprisings of the Revolutionary Party undoubtedly show that Prussia’s internal weakness has reached an extreme.

War is not the problem—"****ism" makes the Prussian people not afraid of war, provided that they are well-fed first.

Starving is absolutely unacceptable; it’s no wonder they united in animosity to expel the refugees—who would want an extra bunch competing for food when they themselves are not even full?

Franz puzzledly asked, "Prussia is connected to us by the Ode River and the River Elbe, and they have a fairly comprehensive railway network. They should have both water and land transportation and shouldn’t be lacking in food supplies, right?

Hols, how much grain has the Berlin Government bought from us in the recent months?"

After the sea routes were blocked, only Austria, Denmark, and the German Federation remained bordering the Kingdom of Prussia that could trade.

Without a doubt, the Berlin Government would turn to Austria for grain imports, as the other two didn’t have that much to sell to them.

Minister of Agriculture Hols replied, "After Christmas, we have successively exported 768,000 tons of agricultural products to the Kingdom of Prussia, including 200,000 tons of flour, 300,000 tons of potatoes, 120,000 tons of corn, 20,000 tons of soybeans, and 30,000 tons of meat products..."

Potato exports had surpassed flour, and Franz knew this was a harbinger of economic collapse in Prussia. It was only when they truly could no longer hold out that they would make large-scale purchases of the cheaper potatoes.

With a sigh, Franz said, "Even at a time like this, there are still people hoarding goods. Wilhelm I’s control over the country is really not that great, they deserve their defeat this time.

"Let the Foreign Ministry step in for mediation. The Kingdom of Prussia is about to collapse, and the Russians have had their fill, I believe they won’t refuse our mediation this time.

"We must try to hold this international conference in Vienna; now we need to show everyone the efforts we’ve made to maintain the territorial integrity of the German Region."

What results from this doesn’t matter; as long as everyone sees the efforts made by the Vienna Government, that’s sufficient.

War is a high-risk activity. As the defeated party, the Berlin Government will surely pay a heavy price this time.

This was something Franz was pleased to see. Without a sense of crisis, how could the many sub-states in the German Region realize Austria’s importance?

The overbearing Kingdom of Prussia served as a perfect negative example, awakening the crisis awareness of the Germans and deeply ingraining the idea of unification.

This meant that the Vienna Government was destined not to clean up after the Kingdom of Prussia. One had to pay one’s own debts, and a harsh armistice treaty was inevitable.

With uncertainty, Foreign Minister Weisenberg asked, "Your Majesty, wouldn’t it be too soon to leave the British out of the picture?"

The London Government had been calling for mediation, toying with it for months without any result.

If at this moment the Vienna Government steps in and achieves the goal, it would be a real slap in the face.

This is not only a matter of face but also involves international influence. It is imaginable that after the Vienna Peace Conference, the British prestige in Europe will plummet to rock bottom.

Franz shook his head, "Sooner or later we would come to this. Opportunities that come knocking shouldn’t be missed to weaken the British—next time, who knows when it will be.

"Don’t you think it’s an interesting thing to let the countries of Europe feel that Britain is in decline?"

"That Napoleon IV, who’s been biding his time for so many years, should also let his own light shine. If this continues, I estimate he might go crazy from the pent-up frustration.

"Keep in mind, the London Government was ready to let Prussia merge and establish a North German Empire to confront us. If they dare do that, our small counterstrike is not excessive, right?"

It wasn’t that Franz underestimated Napoleon IV; it was mainly that the internal situation in France was really bad. Compared to Napoleon III, his control over the country was much weaker.

France has fallen behind in the past few years, not only objectively due to a lack of resources but also directly related to changes in the government’s economic policy.

Sometimes the more you do, the more mistakes you make. Is developing North Africa a good idea? Of course, it’s good to add a source of resources and a market for goods, but the key is to be able to develop it effectively.

The policies of the Government look good on paper, many of which have borrowed Austria’s successful experiences; the key issue is that the national conditions differ.

First, the Paris Government lacked effective execution. Napoleon IV did not have the commanding authority, and the French Cabinet lacked efficient cooperative capability.

This was a pit left by Napoleon III. Although it cleared the way for Napoleon IV to take power, the cost was an escalation of internal political strife.

Lacking sufficient prestige, Napoleon IV had to play a balancing act within the government in order to seize power, and this internal fighting consumed a great deal of the French government’s energy.

Secondly, there was the issue of cultural tradition. Whether it be the French people or the Italians, influenced by maritime civilization, they are passionate about commerce and have little interest in farming.

Even if people are brought to the colonies, they prefer to stay in cities, and there are too few who are willing to settle down and cultivate the land.

Capitalists clearly lack interest in remote colonies. Even if they invest in colonies, they prefer mining, which promises to be highly profitable.

The few that manage plantations are national treasures, too few and far between.

With impetuous hearts, everyone is eager for get-rich-quick schemes, unwilling to struggle gradually. The notion of working hard to prosper has no market in France.

Society’s overarching environment cannot be transformed by the effort of a single individual, if one cannot change society, they must change themselves.

If Napoleon IV were mediocre, it would be fine, with the robust capital of France, maintaining the status of a great power would pose no issue.

But if he harbors grand ambitions, that’s when tragedy would strike. When ambition exceeds strength, a societal backlash is inevitable.

Seeing Franz’s expression, Weisenberg hesitated, wanting to say but stopping short, He really wanted to say, "The United Kingdom’s plans are all indulged by Austria."

To establish North Germany, it’s not enough to have just Hanover and Prussia, it’s also essential to pull in other German Confederation states.

With more participants involved, state secrecy naturally becomes a joke.

Perhaps the British have yet to notice the problem, after all, the London Government has been extremely cautious this time. The allies they’re courting are all states with distant relations to Austria.

The plan has progressed to the present where all those in the know, combined, might not even exceed thirty individuals, all from the absolute upper echelons of their respective nations—betrayal is out of the question.

In theory, as the masters of a nation, it is impossible to betray one’s own country. However, there are always exceptions, and if anyone sees that prospects for North Germany are dim and want to secure a backup plan for themselves, then there’s nothing one can do.

If it were the height of the Prussian-Austrian union, Franz would certainly try to interfere. Yet at this stage, whether Prussia and Austria merge is no longer important.

The war inflicted tremendous damage on the Kingdom of Prussia, a loss of massive amounts of territory and population, and the burden of enormous debt, representing a complete mess.

If North Germany were to be formed, the Central Government simply won’t have the energy for anything else, they must first find a way to ensure the Kingdom of Prussia survives.

This is not a joke, the Kingdom of Prussia is rife with widows and orphans post-war, the economy is utterly withered, and without a significant injection of funds, they will collapse on their own.

At this time, one cannot count on the British, who are not in the charity business. To think they are stirring up North Germany with good intentions is unthinkable.

In addition to needing to counterbalance Austria, it is more likely to ensure that the Kingdom of Prussia’s debts can be properly serviced. The former is merely a slogan, while the latter is what domestic interest groups need.

Just thinking about the massive debt the Berlin Government carries makes Franz recoil; this time it’s truly an unaffordable burden.

The United Kingdom’s debt + other countries’ debt + domestic debt + compensation for injured soldiers + post-war reconstruction costs, and possibly even a Russian war indemnity.

How nice the name North German Empire sounds; first help the Berlin Government repay its debts, otherwise why would the Kingdom of Prussia come in as a junior partner?

3 billion divine shield, it seems not enough to pay off the debt of the British alone; 3 billion divine shield, it appears still unable to fill the gap; 3 billion divine shield, maybe enough, but who knows before the dust settles?

3 billion divine shield, what’s the concept here?

The Central Government of the New Holy Roman Empire has a fiscal income of less than 2 billion divine shield, and it would take fifteen years of fiscal revenue just to fill this huge gap.

Of course, these 3 billion divine shield do not need to be paid in a lump sum, and it includes the calculation of the interest on funds, the final amount needed to be paid.

If it’s just the principal, not to mention the still unborn North Germany, even the Vienna Government wouldn’t have the capacity to take on such a debt.

Even with installment payments, the Berlin Government lacks the ability to pay such a massive debt, and that would require meticulous management.

What the Berlin Government will do next, Franz is almost clear about. First of all, pride must be cast aside; begin printing money at full capacity, using inflation to wipe out domestic debt.

International loans must also be gradually negotiated down, striving to get creditors to waive some interest, ideally only repaying the principal. Issued bonds must be postponed in redemption, repaying whenever there is money.

Guessing it might be possible to cut the debt in half, the Berlin Government still wouldn’t be able to pay it, which means only the Central Government can share part of the burden.

The question is, would other states be willing to pay for the Kingdom of Prussia? When it comes to their own interests, what is the North German Empire?