After rounds of fierce verbal sparring and behind-the-scenes bargaining, on June 16, 1905, the nations of the world gathered in Vienna to sign the Treaty of Vienna, bringing the World War to a formal and complete end. Overall, the treaty was relatively generous to most countries. Even toward the defeated powers, the terms could hardly be called excessively harsh. Those states that had withdrawn early and switched sides were now, at least nominally, considered members of the Continental Alliance, and were no longer held accountable for wartime responsibility. The real reckoning fell on only three countries: Britain, Japan, and the United States. Among them, the British Empire suffered the most. As one of the main pillars of the war effort, it was stripped down to the bone. The main provisions of the treaty were as follows: I. All defeated nations (Britain, Japan, and the United States) formally acknowledge their defeat and accept full responsibility for the outbreak and consequences of the World War. II. All colonial possessions are to be ceded to the Continental Alliance.
(Specifically: The Holy Roman Empire receives British Australia, Canada, New Zealand, parts of the Indochinese Peninsula, and various overseas islands, including Hawaii, Madagascar, Sri Lanka, and others; Spain regains control of the Strait of Gibraltar; Spain, Portugal, the Netherlands, Belgium, the Nordic Federation, Sardinia, Greece, and others jointly divide British India…) III. War reparations totaling 66 billion guilders are to be paid over 99 years, with principal and interest included, at a monthly interest rate of 0.5%. (Allocation: Britain 33 billion, the United States 32.5 billion, Japan 0.5 billion.) (Distribution of reparations: the Holy Roman Empire 79.6%, the Russian Empire 8.8%, Spain 4.9%, the Netherlands 3.5%, Belgium 0.7%, …) Addendum: In consideration of national fiscal realities, annual repayments need only amount to no less than 15% of government revenue. Any unpaid balance will automatically roll over, accruing compound interest. IV. In the interest of maintaining global peace and stability, the defeated nations are prohibited from developing any military-industrial capacity. All weapons and equipment must be purchased from member states of the Continental Alliance. V. The armed forces of the defeated nations must be strictly limited so as not to disrupt regional balance. This includes regular armies, police forces, militias, and any other armed organizations. The size of these forces will be reviewed and set annually by the soon-to-be-established United Nations. VI. From the date of signing, all territorial transfers must be completed within one year. All British, Japanese, and American forces are to withdraw fully to their home territories. VII. Within one month of the treaty’s signing, all nations are to begin exchanging prisoners of war. Any surplus prisoners are to be ransomed in accordance with international conventions. … All told, there were more than a hundred clauses. The content looked extensive, but compared with the punishment once imposed on France, it was still far lighter. Surrender early and you lose half. Surrender late and you lose everything. If anyone was to blame, it was the French for giving up too late. When Britain surrendered, it still had a Royal Navy in hand. When France surrendered, allied armies were already closing in on Paris. Of course, that was only the surface reason. The real reason was that France posed a far greater long-term threat, while Britain, isolated overseas, would be completely toothless once stripped of its colonies. Just look at the treaty and it becomes obvious. Even the Royal Navy failed to catch the interest of the Holy Roman government. Everyone understood why. Even the richest landlord has limits. The Holy Roman Navy was already massive. With the era of aircraft carriers approaching, taking in a pile of outdated battleships would serve no purpose other than towing them out for target practice or scrapping them for metal. In any case, postwar Britain could not afford to maintain them. In fact, it was hard to find any country in the world that could. Annual maintenance costs alone exceeded the total fiscal revenue of most nations. Even a fire sale would find no buyers. Bound by the Treaty of Vienna, Britain would lose its entire military-industrial base, meaning spare parts would become impossible to obtain. For most countries, buying such one-time-use warships would amount to nothing more than wasting dock space. Having limited potential had its own advantages. After paying colonies, reparations, and surrendering its arms industry, Britain managed to preserve the British Isles. That success, however, was only temporary. Five years later, referendums in Ireland, Scotland, and Wales were still waiting. Even pushing those referendums back by five years was the result of strenuous effort by the British government. After all, Britain had made far too many enemies in the past. The Holy Roman government had been persuaded, but the other nations had no intention of letting Britain off lightly. It was easy to imagine that the British Isles would face years of unrest ahead. A Britain with its hands and feet tied could no longer intimidate anyone. Old grudges would be settled, old scores repaid. That was inevitable. No matter how severe the turmoil became, Britain, as a defeated nation, had no means of starting a war in retaliation. Most of the clauses were unremarkable. The one that drew the most attention was reparations. Not because the total sum was unprecedented. Compared to what France once paid, Britain was actually paying tens of billions less. What truly shocked people was how the reparations burden was divided among Britain, the United States, and Japan. Japan paying only five hundred million was easy enough to understand. Japan was already dirt poor to begin with. Five hundred million guilders amounted to more than a decade of its fiscal revenue. Any more than that and it would truly be a case of debts so heavy that another straw would break the camel’s back. Moreover, although Japan had chosen the wrong side, it had still rendered meritorious service in striking at Russia. That kind of contribution could not be acknowledged openly, but a bit of preferential treatment was only reasonable. After all, Japan had lost all its colonies and was likewise subjected to strict military limitations. That said, the Japanese government probably did not feel this “leniency” at all. Once the treaty terms were made public, cries of “punish the traitors” were bound to erupt again. By comparison, the treatment of the United States was downright ruthless. Also an accomplice, Japan paid only five hundred million, while the United States was saddled with 32.5 billion, essentially on par with Britain. There was no mystery here. This was yet another product of backroom dealing. The total reparations sum of sixty-six billion guilders had been jointly set by the Continental Alliance, but how that burden was divided among Britain, the United States, and Japan was the result of maneuvering by the three countries themselves. In order to drive wedges between them, the Holy Roman government deliberately turned a blind eye. In the end, Britain, the most ruthless operator of the lot, came out on top and successfully dumped half of the debt onto its allies. That was already with some parties deliberately sabotaging Britain out of spite. Otherwise, the United States would have paid even more. No matter how others saw it, Franz simply could not understand how the Americans had dared to sign such a treaty. After all, the Japanese delegation had outright refused to sign in protest of the unfair treatment at the Vienna Conference. Of course, once the allied fleet blockaded the Sea of Japan and Tokyo was treated to a “bonfire festival,” the Japanese representative promptly signed his name. It was said that the unfortunate man intended to commit seppuku after signing, but since there was no katana on hand, the act had to be postponed. He was then duly warned by officials of the foreign ministry. Cutting his own belly was fine, as long as it was done back home. If he caused trouble in Vienna, the Southeast Asian Fleet would pay Tokyo a visit. With the signing of the Treaty of Vienna, half the work of the conference was complete. What followed would be the establishment of the United Nations and the construction of a new international order. Unlike the old balance-of-power system, this time it was absolute dominance by a single power. In theory, Franz could now shape the world order entirely according to his own will. Obviously, that was impossible. Weak as the other countries might be, without their cooperation, no international order could actually be established. As the biggest winner of this war, the Holy Roman Empire now needed a stable world. Stirring up trouble everywhere, sowing discord among nations, and playing balance-of-power games were tricks for island states like Britain. A dominant continental hegemon had no need for such petty maneuvers. Open, aboveboard strategy was more than enough. Gazing at the map on the wall, where the double-headed eagle banners now spanned the globe like a striking tapestry, Franz spoke slowly, “The establishment of the United Nations should be accelerated. However, its organizational structure and specific functions do not need to be finalized immediately. The world war has only just ended. International tensions are in a period of temporary relaxation. Right now, no country wants an organization sitting above their heads and issuing orders. If we push too hard, we will only provoke resistance. In the short term, the United Nations will function purely as a liaison body. Its concrete responsibilities can be filled in gradually, according to future needs. This world has never truly been peaceful. As long as humanity exists, conflict will always be the main theme. When international tensions rise again, the nations will naturally come to understand the value of the United Nations.” Being the boss was no easy task. For the sake of long-term stability, Franz had to take other countries’ sentiments into account. He could not afford to alienate everyone. The United Nations had to exist, but it could not be seen as a Holy Roman conspiracy, a tool to interfere in other nations’ internal affairs or to dominate the world. As the sole hegemon, and one that had left all competitors far behind, Franz was in no hurry at all when it came to shaping the international order. There was no need to rush. If everything were settled at once, what would the next emperor have left to do? Chancellor Chandler said, “Your Majesty, the United Nations itself will not be difficult. As long as the organization is not granted real power, no country will refuse to join. The real trouble lies in what comes after. The agreements have been signed, but whether each country will actually carry them out as promised remains an open question. Britain should not be a major problem. In this world war alone, it lost at least three million people, and domestic anti-war sentiment is at its strongest. Moreover, our punishment of the British Empire is not excessively harsh. Aside from the rather large reparations, most of the terms have little direct impact on ordinary British citizens. Japan and the United States are another matter entirely. Just look at the behavior of the Japanese delegation. Japan’s domestic opinion simply cannot accept these armistice terms, and unrest is almost inevitable. As for the United States, it hardly needs mentioning. Its internal contradictions are already severe. Even before the Vienna Peace Conference has officially begun, turmoil has erupted at home. The clauses aimed at the United States are far too harsh. Once they are made public back there, it will almost certainly trigger another storm.” The overall situation was something politicians worried about. Ordinary people reacted according to their hearts. If they were unhappy, then they were unhappy, plain and simple. Fragile Japanese nationalism and the chaotic mess that passed for ideology in the United States were clearly incapable of withstanding the blow of the Treaty of Vienna. Once the streets descended into turmoil, politics would inevitably be affected as well. Japan at this point already showed signs of sliding into madness. If a coup were launched to overthrow a so-called sellout government, Franz would not be surprised in the slightest. The United States was different. Its nationalism might be overflowing, but each state was effectively a powerful regional lord, with authority hardly weaker than the constituent states kneeling beneath the Holy Roman Empire. A coup was unlikely, but impeaching a president and replacing the government could happen at any moment. With political instability, treaties became nothing more than scraps of paper. If Japan and the United States failed to honor their commitments, it was not even clear who one was supposed to negotiate with. Franz tapped the table lightly and said calmly, “Let them make a fuss. It may even bring us some unexpected gains. Russia suffered enormous losses in this war, yet gained nothing from India afterward. They are sitting on a mountain of resentment. If Japan is not punished, Nicholas II will not be able to swallow that anger. Did not the Qing Empire recently want to recover the colonies occupied by Japan? In that case, if Japan starts causing trouble, we will sell Japan’s colonies to the Qing Empire. Order the Southeast Asian Fleet to blockade Japanese waters and let them send troops to reclaim the territory themselves. The United States is even easier to deal with. We are not afraid of them making noise. We are afraid they might stay quiet. Add fuel to the fire and stir up conflicts among the states. The war was clearly launched by the eastern states for their own interests. Why should the western and central states foot the bill? If things really spiral into a breakup of the United States, then waiving reparations is not out of the question. The responsibility lies with Washington. Newly independent successor states have no obligation to pay for it.”
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