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Emperor Franz Josef died in the evening November 21th, 1916. With his death the Thronfolger Karl became Emperor of Austria and (designated) King of Hungary.

Karl decided to begin his rule with a new government. He immediately (December 1st) changed many of the important posts. His new Minister of War became Moritz Auffenberg, Freiherr Auffenberg von Komarów, an experienced Army officer and former minister of War. Stephan (István) Baron Burián von Rajecz, the former Foreign minister became new minister of Finance. Ottokar Czernin. Graf Czernin von und zu Chudenitz an experienced diplomat became Foreign Minister. Auffenberg and Czernin were protegees of Franz Ferdinand, who had informed Karl of his plans to rebuild the Monarchy in 1913, while Burian got his job to placate the Hungarians. He replaced Ernst von Koerber with Heinrich Karl Maria Clam-Martinic – as Ministerpräsident of Cisleithania, but István Tisza Graf von Borosjenő und Szeged remains Hungarian Prime minister. Karl delayed his coronation as Hungarian King (as Franz Ferdinand had planned for himself) to be able to make reforms without being bound by oath to Hungary. His Last decision was the replacement of Franz Conrad von Hötzendorf as chief of staff with Artur Arz von Straußenburg.

With the successful campaign against Romania nearing its end Karl decided to try to make peace and end the bloody war. In attempt to persuade Germany to support his peace initiative he sent his Foreign Minister to Germany. The German OHL agreed to a peace offer, but the text presented to Karl was offering nothing to the Entente and Karl realised that the Entente would put such an offer down. He decided to act on his own and let his German ally know of this:

“Either you agree to make a substantial peace offer to the Entente or I will make peace on my own conditions. After not receiving an answer Karl ordered Ottokar Czernin to send a letter to the French Prime minister Aristide Briand on January 3rd using the Austrian and French Embassies in Switzerland.

“….

Your Excellency!

His Imperial Majesty Karl, Emperor of Austria and King of Hungary has ordered me to ask for your terms for a Ceasefire between the Entente Nations and Austria-Hungary. This terms and the ceasefire should pave the way to a peace treaty between your nations and Austria Hungary on an even level. His Imperial Majesty is of the firm conviction that further bloodshed is only giving harm to all our nations and an honourable peace treaty is giving or nations the much deserved time to heal the wounds this conflict had inflicted.

I must inform you that I speak only on behalf of Austria-Hungary and not on behalf of the German Empire, Bulgaria or the Ottoman Empire.

With this letter I send a list of demands and concessions which are the base of peace negotiations.

Yours Sincerely

….”

Those is condensed the list of demands and concessions:

ALL:

Private persons and enterprises residing in a signatory nation whose assets were seized by any other signatory nation are entitled to compensation by the seizing nation. This compensation must be claimed within 5 years of ratification of this treaty. A commission made up of one representative each of both signatory nations and representative of a neutral nation (Austria-Hungary suggests the United States) decides on the legality and amount of such claims.

Austria-Hungary commits itself to expulse forces of the German Empire, Bulgaria and the Ottoman Empire from its territory within three months of ratification of this treaty. Austria Hungary likewise withdraws all forces from territory belonging or occupied by the German Empire, Bulgaria and the Ottoman Empire within a month of ratification of this treaty. Austria Hungary withdraws all forces from territory belonging to a signatory nation within a month of ratification of this treaty unless otherwise stated.

Prisoners of war are to be returned to their home country as fast as practical after ratification of this treaty. Interned civilians are to be released immediately and they are provided with save passage to their home country if they wish so.

SERBIA:
* - Austria-Hungary has no territorial demands on Serbia.
* - Serbia has to declare that elements linked to parts of her government had part in the assassination of Franz Ferdinand.
* Serbia pays an amount of 1 million crowns to Austria-Hungary, those cover the expenses of Austria-Hungary for investigation of the assassination.
* Serbia is limited to an army of 30.000 officers and enlisted men for ten years (Starting with ratification of the peace treaty).
* Serbia and Austria Hungary have no further demands, monetary or otherwise on each other.
* Austria-Hungary withdraws all forces from Serbia within three months of ratification of a peace treaty between Serbia, the German Empire, Bulgaria and the Ottoman Empire. Austria Hungary does not allow forces of the German Empire, Bulgaria and the Ottoman Empire to occupy additional Serbian territory (see attached map no. 1).

RUSSIA:
* Austria-Hungary has no demands territorial, monetary or otherwise on the Russian Empire and expects a border as status quo ante. Likewise the Russian Empire has no demands territorial, monetary or otherwise on Austria-Hungary. Troops occupying territory of the other nation are to be withdrawn as soon a peace Agreement between Russia and the German Empire is ratified. Austria-Hungary does not allow German troops to occupy Russian territory occupied by Austria-Hungary (see attached map no. 2).

MONTENEGRO
* Montenegro cedes the Lovcen (see attached Map no. 3) to Austria-Hungary.
* Austria-Hungary has no other demands territorial, monetary or otherwise on Montenegro. Likewise the Montenegro has no demands territorial, monetary or otherwise on Austria-Hungary.

FRANCE, the United Kingdom and Commonwealth States
* Austria-Hungary has no demands territorial, monetary or otherwise on France, the United Kingdom and Commonwealth States and expects a border as status quo ante. Likewise France, the United Kingdom and Commonwealth States have no demands territorial, monetary or otherwise on Austria-Hungary.

BELGIUM
* Austria-Hungary has no demands territorial, monetary or otherwise on Belgium and expects a border as status quo ante. Likewise Belgium has no demands territorial, monetary or otherwise on Austria-Hungary except see below.
* Austria-Hungary recognizes that Belgium was unjustly attacked with the help of Austro-Hungarian military forces. To symbolically compensate the wronged nation Austria donates a fonds with 2 million crowns to rebuild destroyed churches and orphanages.

JAPAN:
Austria-Hungary sells its Tientsin concession to the Empire of Japan for the sum of 1 million crowns. Austria-Hungary may trade freely in China.
* Austria-Hungary has no other demands territorial, monetary or otherwise on the Empire of Japan and expects a border as status quo ante. Likewise the Empire of Japan has no demands territorial, monetary or otherwise on Austria-Hungary.

ITALY:
* Austria-Hungary has no demands territorial, monetary or otherwise on the Kingdom of Italy and expects a border as status quo ante. Likewise the Kingdom of Italy has no demands territorial, monetary or otherwise on Austria-Hungary.
* Austria-Hungary acknowledges that Italy has interest in Italian settled territory of Austria-Hungary. Austria-Hungary offers Italy the opportunity to buy certain parts of this territory (see attached maps 4 and 5/Trentino and Lands along the Isonzo). The Price is to be determined by a joint commission between The Kingdom of Italy, Austria-Hungary and the United States as neutral party. The Kingdom of Italy renounces all other territorial claims on Austria-Hungary. Italian speaking citizens of those territories of Austria-Hungary (see attached map 6) are allowed to leave Austria-Hungary within 3 years from ratification of this treaty with a compensation of 50% worth of their immobile assets.
* Italy is allowed to build and maintain an Italian university in Triest. Austria-Hungary acknowledges all academic titles issued by this University if the meet the standards required in both Austria-Hungary and the Kingdom of Italy.
* Albania is to be restored as a nation. Italy and Austria-Hungary have a joint protectorate of Albania for the next 25 years. Wilhelm of Wied is to be reinstated as head of state in Albania.
* Austria-Hungary gets a lease of the Town of Vlore and adjacent lands for 99 years (see attached map 7).

Ideas - how would the Entente react, what Counter proposals would they have - did I miss something on the proposal.

(I have some ideas of things that went different earlier...)
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