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The reborn Prince Hechingen of the Swabian branch of the Hohenzollern family perceives the unfolding situation in Europe, where war is imminent. Europe cannot afford to delay. The strategy involves establishing a presence in East Africa, fostering immigration and development, and laying the foundations for agriculture. This gradual approach leverages the crisis to expedite the process of industrialization

African Entrepreneurship History

Chapter 78: The Austro-Hungarian Empire

On May 29, 1867, Emperor Franz Joseph of Austria and Deak reached a consensus and signed the "Austria-Hungary Compromise Plan," officially dividing the Austrian Empire into two separate entities: Austria and Hungary. This marked the end of the Austrian Empire's dominance.

Under the new arrangement, citizens could choose either Austrian or Hungarian citizenship but not both. The Austro-Hungarian Empire was established with Emperor Franz Joseph serving as the ruler of both Austria and Hungary. This dual rule highlighted the fragile and somewhat absurd nature of the new empire.

Decisions within the Austro-Hungarian Empire required negotiations between the governments of Austria and Hungary, leading to administrative conflicts from the outset.

Ernst found himself dealing with the Hungarian government due to the changing political landscape. He was interested in testing whether this new government would hinder his actions, shifting his dealings from the Austrian to the Hungarian authorities.

Ernst discovered that the Austro-Hungarian Empire was easier to deal with than the Austrian Empire. The Hungarian government, influenced by nationalism, cooperated with Ernst, particularly in immigration matters. Ernst found that his immigration efforts were smoother in the Austro-Hungarian Empire, which included regions like Slovenia, Croatia, Galicia, Czech Republic, and Slovakia.

Hungary's struggle for independence was motivated partly by economic interests, as losing Austria would leave them vulnerable. The presence of various ethnic groups, especially the Slavic Yugoslavs, posed a challenge to Hungary's national unity.

Ernst's cooperation with Hungarian nobles allowed him to export non-Magyar populations from Hungary to the East African colonies. This partnership aimed to reduce the presence of other ethnic groups in Hungary and solidify Hungary's position as a separate entity.

Ernst's goal was to ensure that Hungary did not impede his population relocation efforts, preventing Franz from repeating history by intervening to protect non-Hungarian ethnic groups.

Ernst approached Franz at Schönbrunn Palace to discuss the situation. He warned Franz against making substantive promises to the non-Hungarian ethnic groups in Hungary, as such actions might provoke instability.

Ernst advised Franz to express concern rather than take an active role in protecting the interests of these groups, as direct involvement could lead to backlash from Hungarian nobles and potentially worsen the situation.

Franz listened to Ernst's advice and recognized the complexities of dealing with the newly formed Austro-Hungarian Empire, showing willingness to proceed with caution.