been their wisest plan to do so--openly
to support the claim of Augustenburg, to demand that the Estates of
Holstein should be at once summoned, and if Bismarck carried out his
threats, to put herself at the head of Germany and in the name of the
outraged right of a German Prince and a German State to take up the
Prussian challenge.

There were, however, serious reasons against this. The Emperor was very
reluctant to go to war, and, as so often, the personal feelings of the
rulers had much to do with the policy of the Government. Then the
internal condition of Austria both politically and financially was very
unsatisfactory; it would have been necessary to raise a loan and this
could not be easily done. There was also the constant danger from Italy,
for Austria knew that, even if there were no alliance, as soon as she
was attacked on one side by Prussia, the Italians on the other side
would invade Venetia. Count Metternich was instructed to ask Napoleon,
but received as an answer that they could not hope for a French
alliance; the Austrians feared that he might already be engaged on the
side of Prussia. For all these reasons it was determined to attempt to
bring about a compromise. A change of Ministry took place, and Count
Blome, one of the new Ministers, was sent to Gastein. He found both the
King and Bismarck not disinclined to some compromise. The reports both
from Florence and Paris did not seem to Bismarck to be entirely
satisfactory: he did not find such readiness as he had hoped for; he
feared that some secret understanding might be arrived at between
Austria and Napoleon; and then, as we have seen, he was really anxious
to avoid war for the sake of the Duchies; he had not given up his
intention of war with Austria some day, but it would be impossible to
find a less agreeable excuse for it.

"Halbuber and Augustenburg are acting so that we shall soon have
to apply force; this will cause bad blood in Vienna; it is not
what I wish, but Austria gives us no choice,"

he had written a few days before. After a few days of indecision a
compromise therefore was agreed upon. The joint administration of the
Duchies was to be given up; Austria was to administer Holstein, Prussia,
Schleswig; they both undertook not to bring the question before the
Diet; the Duchy of Lauenburg was to be handed over absolutely to the
King of Prussia, the Emperor of Austria receiving two million thalers
for his share. Lauenburg was t