Persian Empire 1845

Chapter 425 Ceasefire
In this battle, Austria's total losses were: over 8000 captured, and over 18000 killed, wounded, or missing, including nearly 800 officers. In return, the Prussian army suffered 16000 casualties and over 4000 captured. The score was 1-1.

More than 1000 Iranian mercenaries were killed, and Grand Duke Albrecht wrote to the Emperor, hoping to offer condolences to the families of these fallen soldiers. But who would offer condolences to Prussia?

Wilhelm I, Bismarck, and Moltke sat together, the atmosphere heavy with tension. They could have ended the war this time, but now they had to reconsider.

Bismarck also received a telegram from Iran. The ambassador had investigated and found that Austria was backed by Iran, and that 80% of their supplies and war expenses were purchased or borrowed from Iran. This strongly supported Austria's actions.

"We all underestimated Iran," Bismarck said with a wry smile, recognizing it as a major blunder. Prussia should have considered this when it supported Britain's actions during the Malayan crisis; Iran was now there for revenge.

Wilhelm I also looked grim. He had finally managed to suppress the liberals in parliament, but they were likely to rise again. It was a real headache. Crown Prince Frederick, on the other hand, proposed peace talks. Their situation was already quite unfavorable; if they were dragged into a protracted war by Austria, their domestic finances would collapse.

Prussia was spending 110 million tlers daily on military expenses, and two months of continuous fighting had depleted its initial reserve of 2500 million tlers. To address this, Bismarck ordered the privatization of the Cologne Railway, obtaining 2400 million tlers, and also issued an additional 2000 million tlers in national bonds. However, this money was now only enough to last seven days; if the war could not be ended, they would face bankruptcy.

"Would things be much better if we launched another attack?"

Wilhelm I questioned Moltke, but received a poor answer. It was now certain that Iran had aided Austria, and they had already witnessed the power of these weapons in Berlin. Forcing Iran to intervene directly would likely lead to another seven-year war. This was unacceptable to Bismarck.

"Send someone to Vienna and tell them we want to negotiate."

Bismarck decided to bow to reality. Although it might delay unification for a few years, he could continue to build up his strength and try again later.

Just as he gave the order, the Prussian envoy arrived with shocking news: the Austrian Emperor had decided to invite Wilhelm I and Bismarck to Prague for peace talks regarding the war.

Bismarck's mind was racing at lightning speed. He didn't know what was going on with Austria proposing peace talks. But it was a good thing nonetheless; ending the war now was the best thing ever.

Vienna, the capital of Austria.

Inside Schönbrunn Palace, Franz had just finished a cabinet meeting. He had decided to take the Foreign Minister to Prague, and he still had a draft speech in his hand; he planned to dissolve the German Confederation.

Austria's influence within the German Confederation gradually waned, leaving only the four southern states with some remaining influence, but this was limited to marriage alliances and religious matters. Like Austria, they were Catholic, and the Habsburgs frequently intermarried with them; the Wittelsbach family, which ruled Bavaria, historically intermarried with the Habsburgs. Franz's Empress was also Bavarian.

Economically, Austria did not join the German Customs Union, and therefore its ties with them were quite weak.

While other states were forced to withdraw from or join Prussia, Austria was forced to make the most painful decision: to dissolve the German Confederation and submit the matter to the Frankfurt Parliament. Although Reichberg had some objections, the dissolution of the Confederation seemed inevitable. The loosely structured administration was unable to respond effectively to major issues; although Prussia unilaterally dissolved the Confederation, it required the recognition of the permanent presidency, Austria.

"Your Majesty, we have already borrowed 9000 million crowns from Iran. We can't borrow any more, or we'll go bankrupt."

Austria paid a hefty price to provide collateral for the loan. This included the Vienna-Krakow and Lviv railway, the port of Venice, farms in Hungary, and salt mines in Transylvania—all of which were bundled together and given to Iran.

Furthermore, an agreement needs to be signed with Iran in the future, requiring further economic cooperation between the two sides. Faced with the need for large-scale economic development, Franz has no other choice but to further embrace his financial backer, Iran.

Planner's words brought Franz to his senses; Austria's enormous national debt had to be repaid. If that was the case, then the only option was to painfully relinquish the family's centuries-old territory.

"Okay, let's go then."

Franz and Reichberg were to travel to Prague, and when news of the Battle of Kregniz spread, some unrest arose in the other states, but the Prussian army managed to quell it. News of peace talks between Prussia and Austria also emerged, leaving everyone wondering why the Austrian army hadn't pressed their advantage, given that this was a golden opportunity to drive the Prussian army out in one fell swoop.

These remarks were confined to discussions among citizens; bureaucrats scoffed at them, unaware of the government's predicament. The finances were on the verge of collapse; survival was the priority.

Prior to the peace talks, Austria requested that Iran mediate. Prussia disagreed and proposed that France participate, but Austria refused. Prussia also stated that if Iran did not join, the negotiations would have broken down.

Iran! Iran! Iran! Austria can't live without Iran. Bismarck gets a headache just hearing the word "Iran," but he still agreed. No matter how powerful you are, it's useless without money.

“Inviting Iran would probably take up too much time,” Bismarck said to the Austrian envoy.

"Prime Minister, there is no need to worry. The Shah of Iran has already arrived in Bucharest and should arrive in Prague in another week."

These words left Bismarck speechless. Good heavens, this is what they were waiting for. Was he going to follow in the footsteps of Catherine the Great of Russia and mediate the Austro-Prussian War like she did the War of the Bavarian Succession?

Economic considerations prevailed, and the king agreed to the proposal. The two countries agreed to hold peace talks on July 4th, and to maintain the current status quo until then.

Both countries began redeploying their troops, but only within those two nations; fighting continued on the southern front between Austria and Italy. General Bednek, having moved to Venice, displayed his talent, besieging Milan and sending troops to advance towards Parma, a key transportation hub. Italy launched three counter-offensives, all of which were repelled, and it seemed he was in danger.

(End of this chapter)