Hungarians, as Deak had hoped would be the case,
were given an enormously advantageous position. Humiliated by her
expulsion from a confederation which she had been accustomed to
dominate, Austria, after the Peace of Prague (August 20, 1866), was no
longer in a position to defy the wishes of her disaffected sister
state. On the contrary, the necessity of the consolidation of her
resources was never more apparent.

*508. The Compromise Effected, 1867.*--July 3 occurred the disaster at
Sadowa. July 15 the Emperor summoned Deak to Vienna and put to (p. 459)
him directly the question, What does Hungary want? Two days later he
accorded provisional assent to the fundamentals of the Deak _projet_
and designated as premier of the first parliamentary ministry of
Hungary Count Julius Andrassy. The working out of the precise
settlement between the two states fell principally to two men--Deak,
representing the Hungarian Liberals, and Baron Beust, formerly chief
minister of the king of Saxony but in 1866 brought to Vienna and made
Austrian chancellor and minister-president. After prolonged
negotiation a _projet_, differing from the original one of Deak in few
respects save that the unity of the monarchy was more carefully
safeguarded, was made ready to be acted upon by the parliaments of the
two states. February 17, 1867, the Andrassy ministry was formed at
Budapest and May 29, by a vote of 209 to 89, the terms of the
Ausgleich, or Compromise, were given formal approval by the Diet. At
Vienna the Reichsrath would probably have been disposed to reject the
proposed arrangement but for the fact that Beust held out as an
inducement the re-establishment of constitutionalism in Austria. The
upshot was that the Reichsrath added some features by which the
_projet_ was liberalized still further and made provision at the same
time for the revision and rehabilitation of the Imperial patent of
1861. During the summer two deputations of fifteen members each,
representing the respective parliaments, drew up a plan of financial
adjustment between the two states; and by acts of December 21-24 final
approval was accorded on both sides to the whole body of agreements.
Already, June 8, in the great cathedral at Buda, Francis Joseph had
been crowned Apostolic King of Hungary and the royal succession under
the terms of the Pragmatic Sanction of 1713, after eighteen years of
suspension, had been definitely resumed.[654]

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