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An old scenario from soc.history.what-if (1999), probably posted by this board's Mikestone8 on that board.

Copied without permission, but with admiration:

"It is July 15, 1866, and King Wilhelm I of Prussia is a broken and defeated
man.

It is barely a week since his armies suffered shattering defeat at the hands of
Archduke Albrecht of Austria. The bespectacled, unprepossessing Hapsburg,
appointed at the last minute after the idolised General Benedek died of
typhoid, proved himself a better commmander than anyone could have anticipated.
As the sun set on July 8, half the Prussian Army (including the Crown Prince,
in a vain, desperate death-ride to save his father from defeat) lay dead on the
stricken field, and within hours the King and Von Moltke will be captured by
Austrian cavalry. As for Von Bismarck, the Prussian Prime Minister, nothing is
known of him. He was last seen fleeing northwards on a fast horse.

Emperor Franz Josef arrived in Prague only yesterday, but Wilhelm already knows
what to expect. The preliminary peace terms are draconian. Prussia is to lose
all Silesia to Austria, restore Saxony to her pre-1814 borders, and surrender
all the Rhine Provinces (final disposition undetermined) and all other
territory west of the Elbe. The rump of the Prussian kingdon will be saddled
with a huge indemnity and probably resrictions on its armed forces. It is even
worse than Tilsit.

And what hope for the future. Dear Fritz, a good, good boy even if a bit too
easily influenced by liberal politicians and that English wife of his, lies
dead on the field. His seven-year old son, almost a cripple with that useless
arm, will likely never be able to lead an army. The King walks around in a
daze, eyes brimming with tears, murmuring "A crippled child, a crippled
Prussia".

Nor does the diplomatic front offer much hope. Louis Napoleon dislikes Austria,
but his people dislike Prussia even more, and if he makes trouble he can always
be bought off with a chunk of the Rhineland. As for the Tsar, his nobles hate
him for taking away their serfs, and Russia is still not recovered from the
Crimean War and the recent Polish revolt. No, there will be no reprieve.

The doors open, and an equerry comes in "His Imperial Majesty will see you now,
your Majesty" Well, it is time. King William straightens up, walks through the
door. A quotation keeps ringing through his head "For the thing which I
greatly feared is come upon me, and that which I was afraid of is come unto
me."

Franz Josef rises as he enters, indicates a chair. He begins to speak,
outlining the peace proposals. Suddenly, the King knows what he must do.

"Your majesty, those terms are the ruin of Prussia. Do whatever you will, but I
will never sign them. I would sooner abdicate my whole kingdom to you than see
it dismembered in such a way".

For a moment, there is dead silence in the room. The Emperor sits frozen to the
spot, as if trying to absorb what he has heard. Finally he says "Does your
majesty really mean that?"

"Indeed I do. I have always put my people first, whatever lying tongues may
say. I would rather see Prussia whole and intact under the rule of another,
than have it torn limb from limb to save a remnant for myself" If your Majesty
agrees, I will write at once to those army commanders who are still in the
field, informing them that the House of Hohenzollern no longer reigns, and
ordering them to place themselves under your Majesty's orders as though they
came from me"

Silence again, for a moment, in the words of William's ADC "We could almost
feel history holding its breath" Then Franz Josef spoke "I accept"

The Prussian generals were stunned at the news. At first, some refused to
believe that the King really meant what he said. However, as his Aides
confirmed it, one by one they obeyed. After all, what was the alternative?
Berlin was ablaze with revolt at the news of the disaster. Were they to fight
on in alliance with those incendiaries? Foreign help? All that would lead to
was further war, and a partition of Prussia between her voracious neighbours.
Better to accept their King's decision. After all, the Hapsburgs in their turn
might fall on bad times. God willing, the Hohenzollerns might be restored one
day. This way, at least there would be a Prussia to restore them to.

By the end of June, the entire Prussian Army has sworn allegiance to King Franz
Josef. So, incidentally, has Count Bismarck, who emerged from hiding on the
20th. Louis Napoleon and Tsar Alexander are stunned at the news, but unsure
what to do. The remaining Prussian Army is on the Rhine, ready to fight off any
French advance. If Russia moves, the whole of Albrecht's victorious army stands
ready to meet her. Queen Victoria writes to her widowed daughter that Williams
action is "infamous" but Britain has no intention of intervening.

Any thoughts on what comes next?"
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