Chapter 0666: Suppression of the Austro-Hungarian Empire

"Your Excellency, after all, the Austro-Hungarian Empire is an ally of the Empire. We cannot exert pressure on them with such overwhelming force. Doing so would tarnish the reputation of the Empire and strain our relations with Austria-Hungary," von Wicht remarked, shaking his head.

The Italians were indeed deluded; the Empire had every right to gain those benefits from Italy. However, this did not mean that the Empire would assist them in pressuring Austria-Hungary.

"Then what should we do, Your Excellency? Must we truly resort to war with Austria-Hungary?" Paolo Boselli asked, his voice filled with anguish.

Von Wicht paused for a moment, then responded, "The terms Austria-Hungary has proposed are indeed excessively harsh."

"Yes, Your Excellency, they are most certainly severe," Boselli quickly affirmed.

"Then, what price are you prepared to pay Austria-Hungary?" von Wicht inquired.

"Your Excellency, after paying Germany two billion marks in war indemnities, we are left with little. The immense toll the war has taken on our country also requires substantial funds for recovery. Therefore, the most we could offer Austria-Hungary would be five billion krone in war indemnities," Boselli replied.

Von Wicht furrowed his brow. The Italians were not without audacity, slashing Austria-Hungary's war indemnity demands to a mere tenth of the original sum. Though five billion krone was still a considerable amount, it paled in comparison to Austria-Hungary's expectations.

"Five billion krone is far too little. Convert it to five billion marks," von Wicht said firmly.

Boselli was initially taken aback, but quickly nodded in agreement. Five billion marks, though slightly more than five billion krone, was still a modest increase—just an additional one billion marks. While this sum would cause some discomfort for Austria-Hungary, it was still manageable. It was a significant reduction from Austria-Hungary's original demand.

"Very well, Your Excellency. If it is five billion marks, Austria-Hungary should be able to bear that," Boselli said.

Von Wicht nodded in approval. "As for the territory of Venice and its eastern regions, they should be ceded to Austria-Hungary. They have long coveted that land. If we refuse them, they will not relent. The Empire does not wish for these negotiations to collapse entirely. The number of lives lost in this war is already too great; we do not wish to add more."

Boselli paused, contemplating the suggestion before reluctantly nodding. Though ceding such a fertile and prosperous region to Austria-Hungary would significantly weaken Italy's power, especially with the loss of Sicily, it was a strategic concession. By satisfying Austria-Hungary's territorial ambitions, Italy could potentially prevent the war from escalating further. And if the opportunity arose in the future, there might still be a chance to reclaim those territories.

"Very well, Your Excellency. The Kingdom of Italy agrees to cede those territories to Austria-Hungary," Boselli said.

"Regarding Italy's colonies, let Libya be transferred to the Empire, while Italian East Africa will be handed over to Austria-Hungary. Such a vast colonial expanse should suffice to satisfy them," von Wicht proposed.

Libya, rich in oil reserves, was a valuable asset. Given Germany's investments in its oil fields, it was inconceivable to relinquish it to Austria-Hungary. However, ceding Italian East Africa was a reasonable concession to make.

"Very well, Your Excellency. The Kingdom of Italy has no objections to this," Boselli agreed promptly.

The Italians had long known that their overseas colonies would be lost after their defeat in the war. With so much of their homeland already lost, they had no illusions about retaining their distant territories.

Fortunately for Italy, the war had been confined to the Alps, and their homeland had not suffered significant damage. Once the conflict ended, Italy could quickly begin its recovery.

"Your Excellency, then the terms of Italy's compensation to Austria-Hungary are as follows: First, Italy will pay Austria-Hungary five billion marks in war indemnities. Second, the territories east of Venice will be ceded to Austria-Hungary. Third, the Italian colony of East Africa will be transferred to Austria-Hungary. The fourth and fifth terms will be consistent with the agreements we reached with Germany," Boselli outlined.

Von Wicht nodded in agreement. "These are merely suggestions from the Empire. Whether Austria-Hungary accepts the Empire's goodwill is another matter entirely. Do not place all your hopes on the Empire. If Austria-Hungary remains obstinate, you may have to make further concessions."

Boselli nodded vigorously. "The German Empire is the world's foremost power and the leader of the Central Powers. Austria-Hungary will not reject the Empire's goodwill."

Boselli remained at von Wicht's residence until three in the morning before departing. As he left, his face was adorned with a smile. The secret talks had yielded significant results. Not only had Italy reached an agreement with the German Empire, but it had also garnered Germany's support. The terms of the peace treaty with Austria-Hungary would be far less burdensome.

For the Kingdom of Italy, this was undoubtedly a crucial development.

Von Wicht, too, wore a smile on his face. The Italians had proven themselves shrewd. The Empire's demands had all been met. The two hundred billion marks in war indemnities would provide the Empire with additional funds for its use, including the development of the newly acquired Eastern European territories.

Sicily would be ceded to the Empire, and with the acquisition of Corsica from France, the Empire would secure two footholds in the Mediterranean. Though Sardinia remained under Italian control, the expansion of the Empire's influence in the Mediterranean was now undeniable.

The transfer of Libya to the Empire would also ensure a steady supply of oil, bolstering Germany's energy security.

While the Empire had indeed suffered great losses during the war, the spoils of victory had far outweighed them.

At the same time, the Empire began to assert its dominance over Austria-Hungary. In doing so, it sought to solidify its position as the preeminent power in Europe. While this might be seen as a betrayal of their ally, the Empire's interests had to come first.