Divine Wisdom, or Common Sense?

The Kaiser of the German Reich needed to do very little regarding the negotiations between himself and the Kingdom of Italy. As the disputes that existed between them and the Central Powers primarily revolved around claims regarding lands in Austro-Hungary.

Fundamentally, the Kingdom of Italy, the House of Savoy, and any other parties with any stake in the game were required to completely withdraw any claims they may have over the disputed lands in perpetuity, specifically those revolving around lands in Southern Tyrol and Trient.

In addition to this, the Kingdom of Italy was made to pay war reparations in an amount that did not exceed the reasonable. Ultimately, Franz Jospeh was wise enough to understand that with gains made in the Balkans, specifically revolving around Serbia, and the already tumultuous nature of the region. Adding anymore lands to the Austro-Hungarian Empire at this time would be borderline suicidal.