The Austrian government’s laissez-faire attitude undoubtedly emboldened the North German nationalist elements. Although the governments of the various states did not take an official stance, popular sentiment continued to rise. To ensure the plan’s smooth implementation, German Emperor George I privately declared that establishing a North German Empire was a key step in the process of German unification. On the surface, this made sense. Moving from a three-way balance of power to a two-way balance indeed brought Germany one step closer to unification. However, upon closer reflection, the problem was much more complicated. If the merger between the German and Prussian entities is considered the North German Empire, then the new Holy Roman Empire that Franz is tinkering with would effectively become a South German Empire. Beyond that, the question of who ultimately unifies whom remains to be thoroughly debated. Does George I intend for the north to unify the south under its banner? Well, if that were the case, it’s unlikely that any sensible person would believe it. If we compare it to the peak period of the Prussian-Polish Federation and a merger with Germany, there might have been a slight chance. However, that slim opportunity was contingent on Austria being collectively besieged by European countries. At this point, even that small chance is gone. The Kingdom of Prussia, which has been severely weakened, now has a comprehensive national strength that does not even match Bavaria’s. Moreover, the Comedy Empire is at most comparable to the power of only a few states within the Holy Roman Empire. Not only is its strength insufficient, but there are also numerous internal problems. To make matters worse, the military forces remain disorganized. The armies of each state exist independently, and the central government lacks command authority. If that were all, the more crucial issue is that the vast majority of states, including Hanover, have mutual defense treaties with Austria. These treaties are primarily aimed at countering the French, but they also carry implications for the Russians. According to the treaties, when faced with an invasion by a foreign enemy, a coalition force centered on Austria is to be formed. This was a contribution of Metternich. The international environment at that time was completely different from now, with everyone only concerned about the threats from France and Russia. At that time, Austria was considered harmless, so everyone was happy to join the alliance. Now, however, this treaty has become a double-edged sword. While it protects the security of the German Federal Empire, it also restricts the German central government’s ability to consolidate the military forces of the states. The Austrian government can call on everyone to participate in joint exercises, but the German central government cannot. They do not possess that authority, and the state governments would not cooperate. In order to unify domestic military and political affairs, George I held multiple negotiations with the governments of the various states, all of which ended in failure. In the absence of external threats, no one was willing to give up the power they held. That once insignificant mutual defense treaty had become one of the legal foundations for the states to independently maintain their own armies. After repeated failures, George I was on the verge of despair and ready to give up. However, at that moment, the British offered him a new glimmer of hope. The establishment of the North German Empire would bring about another round of political reshuffling. The Kingdom of Prussia, originally his greatest competitor, had lost its eligibility to contest for leadership of the empire due to the war’s impact. Due to financial reasons, the Prussian government would even be forced to make a series of concessions in exchange for financial aid from the central government. This included the command of the army. Indeed, the Prussian government was no longer planning to maintain an army. It was not that Wilhelm I did not want an army, the problem was that they simply could no longer afford to support one. At this point, the Prussian government couldn’t even afford to pay pensions. Exchanging an army that they already lacked the means to support for financial assistance was, in every way, a beneficial move. Unlike Austria, Hanover was limited in size. If the two countries’ armies were merged, the experienced Junker nobles would easily gain an advantageous position. This was also Wilhelm I’s way of appeasing the military. By exchanging benefits to ensure that pensions could be paid regularly, it was far more acceptable to lose some power than to have everyone return to farming. It was a win-win situation. The concessions were not limited to military matters. The financial concessions were even harsher. The Prussian government proposed that, as long as Hanover agreed to assume the debts, the Kingdom of Prussia’s financial revenues could be completely handed over to the central government for unified distribution. There was no doubt that George I resolutely rejected such an unreasonable demand in no uncertain terms. What a joke! He was not the type to covet the states’ financial revenues, and he would never accept that. Unlike the generosity shown in financial and military matters, when it came to territory, the Prussian government became stingy. The two sides were unable to reach an agreement for a long time. … In the Hanover Palace, George I angrily threw aside the documents in his hand and shouted, “Damn Prussian brutes, do they really think that we are the same single-minded oafs as them? They only want to reap benefits without being willing to pay the price. Where in the world does such a thing exist? They are always scheming and treating everyone like fools, showing not the slightest bit of German spirit. It seems that having spent too much time with the Poles, they have forgotten who they are and completely abandoned our fine traditions…” Although it was unclear how George I managed to connect “single-minded” with “scheming” in his outburst, Prime Minister Philipp went along and said, “Your Majesty, do not worry. Harsh reality will eventually sober up those Prussian brutes. Right now, they are still lost in the glory of their past and have not fully grasped their current situation. Once the Vienna Conference is over, they will know exactly what choice to make.” Frankly speaking, George I’s curses were not without merit. Although the Prussian government appeared to make significant concessions, they were merely engaging in an exchange of interests. If they wanted to take over financial power, they had to shoulder the debts left behind. If they wanted to assume military command, they had to pay for the casualties and pensions. Debt is absolutely off-limits. If George I were to dare take on the debt in the name of the central government, the Imperial Parliament wouldn’t hesitate to not only veto it but also replace the emperor. As for the military, that can be negotiated later. The Prussian government has already paid a considerable amount in pensions, and the remaining portion is something that would have to be paid in installments each year. When it comes to soldiers’ pensions, no country in the world can claim that it does a better job than the Kingdom of Prussia. No matter how tight the finances are, Wilhelm I has never neglected this issue. Even if there have been occasional delays, they were quickly remedied. Pensions even account for a significant share of the enormous military expenditures of the Prussian government. George I’s expression softened slightly as he said, “Let it be so! On this matter, we cannot make any concessions. Although we do not know what price the Kingdom of Prussia will have to pay at the Vienna Conference, we can certainly secure the traditional territories of the German region. The remainder of these territories far exceeds that of Hanover. Without weakening the Kingdom of Prussia, even if a North German Empire is established, we would not be able to maintain our dominant position. Securing the two duchies of Schleswig and Holstein and the territories west of the Elbe is our minimum requirement and forms the basis for restraining Prussia in the future. The Ministry of Foreign Affairs will continue to work with the British government. The plan was proposed by them, and now we need to secure their support.” The two duchies of Schleswig and Holstein and the Prussian territories west of the Elbe, when considered solely in terms of land area, actually surpass the Kingdom of Hanover. Of course, the Kingdom of Hanover has a more prosperous economy and a larger population. Their cultural traditions are the same, so absorbing this “fat piece of meat” is acceptable. Moreover, by breaking away from the Kingdom of Prussia, they can avoid the massive post-war debts and high taxes, which would leave the local people feeling relieved. Once this territory is integrated, along with the Rhineland controlled by the Imperial Parliament, and after the merging of Prussia and Germany, the central government will have the strength to suppress the Kingdom of Prussia and maintain an absolute advantage over the other states. In this context, as long as the Kingdom of Prussia makes concessions on military and political issues, the smaller states will not be able to hold out for long. The rest will have to be achieved over time. Theoretically, in another 20 to 30 years, political means could be used to essentially integrate the North German Empire and elevate it to the status of a great power. If it weren’t such an enticing prospect, there would be no way for George I to remain indifferent. Who would want to be a subordinate when they could stand on their own? Even though the chances of failure are somewhat high, it is clearly less risky than joining the Holy Roman Empire. There’s no helping it. When Austria unifies all of Germany, that is precisely when a great European war will break out. With the entire world as an enemy, George I had no confidence in Austria. Rather than leaving his fate in the hands of others, he preferred to control it himself. Daring to step in so early to join the game between Britain and Austria, George I naturally prepared an escape route. Now he stands with the British because aligning with them promises greater benefits. Even if he fails, it doesn’t matter. The unique structure of the Holy Roman Empire dictates that as long as one doesn’t push things too far, the Austrian government won’t go to extremes. If he succeeds, he will establish the foundation of an empire. If he fails, he can simply abdicate, and the throne of Hanover will still be secure. As long as there is no direct armed conflict on the battlefield, Austria has no reason to abolish his throne. The worst that could happen is that he is forced to step down, with his descendants continuing as kings. A low-risk, high-reward venture is always enticing. “Yes, Your Majesty!” replied the Foreign Minister. “Your Majesty, although our financial revenue is not low, our expenditures are also substantial, leaving us with limited funds available for buying land. During negotiations, it is crucial to control the transaction price and avoid exceeding the market value by too much,” reminded the Minister of Finance, Gottfried Fallersleben. The term “market value” is somewhat misleading in the current context, as the situation is more accurately described as having prices but no real market. This has been the case not just now, but for most of the time. Excluding colonial transactions, it is rare for European countries to be willing to sell their own territories unless absolutely necessary. In these times, land valuations are generally not high. However, any territory within Europe, regardless of its actual value, tends to command a high price. International land transaction prices can only serve as a reference. The specific price must be determined based on the needs of both parties, taking into account various factors comprehensively. For instance, the Russians sold Alaska, which spans over a million square kilometers, for just a few million guilders. In contrast, the Kingdom of Prussia previously sold the Rhineland, which is only a few tens of thousands of square kilometers, for over a hundred million guilders. A similar case is the territorial transaction of Prussian Saxony. Even during wartime, it could be sold for tens of millions of guilders. George I waved his hand and said, “Money is not an issue. The British are more than willing to take on this deal. The Kingdom of Prussia owes them a massive debt, which could turn into bad debt at any moment. The bankers have been extremely anxious about this for a long time. Right now, what the Prussians lack most is money. They might be willing to make concessions in other areas, but when it comes to ‘money,’ there is no room for negotiation. The Ministry of Foreign Affairs just needs to do its best. As long as the final transaction price does not exceed what we paid for the Rhineland region previously, we can accept it.” It must be admitted that George I’s judgment in grasping people’s hearts was quite accurate. The British were indeed very worried about the Prussian government collapsing, as their loans would turn into bad debt. At this point, if Hanover was willing to step in, the British would dare to lend even without collateral. In essence, this was a matter of shifting money from one hand to the other. Hanover would borrow money to buy land, and the Prussian government would use the money to repay the British. Fundamentally, the British didn’t need to spend a single penny. By simply transferring funds on the books, they could complete two transactions and, at the same time, reduce their own financial risks. Hanover’s financial situation was solid, with almost no government debt. Lending to them was undoubtedly safer than lending to Prussia, which was on the verge of bankruptcy. The worse a government’s finances are, the more they prioritize money. For the Prussian government at this time, money was no longer just money—it was their lifeline. Without sufficient funds, they would collapse on their own.
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