Rump Austrian Empire after World War I Revised

Propably. Neither side is going to give up Lviv.
I wanted to say that without this war, Western Ukraine did not pass to Poland. And given the losing Entente, Poland does not have many arms suppliers, which in real history were the Entente countries. It should be taken into account that Germany and Austria were allies of the Ukrainian state.
 
While the agreement had now been signed by all of the parties another series of talks was to take place between Poland,the Ukraine Germany, Austria, Hungry Czechoslovakia regarding the borders of Poland, Czechoslovakia, Ukraine, Germany and Lithuania. There was expected to be much disagreement between the parties but Austria was hoping that there could be some agreements even if they were minor
 
Talks regarding the border issues did not see major changes to the German -Polish border but Germany and Austria were able to convince Poland to reach an agreement with Liuthania and another one with the Czechs. The agreement with Lithuania saw Vilnius returned and Germany help to pay for a rail and road to a port in Liuthania giving the Poles another outlet to the Baltic. Poland refused to return any of the Ukrainian territory as long as there was any connection between the Ukraine and Russia
 
Italy had signed a trade agreement with Russia and was in talks to help design new capital ships for the Russian Imperial Navy. This was all a result of the Italian Government working to reach a settlement of the Ukraine Problem. The Austrians had found that Prime Minister Balbo was more interested in improving conditions for Italy than in grabbing territory. Italy two colonies in East Africa continued to be under Italian control but Balbo had started to make improvements with Public works, schools, Hospitals and heading them in the direction to self rule. Still Austria was leary of trusting the Italians too much.
 
Austria had developed a better relationship with the Balbo administration than under the last Fascist Administration run by Mussolini. Balbo had now developed Italy's oil resources. this had resulted in the country being energy poor to energy rich. The Italian Navy was able to operate without having to worry about running out of fuel. Italian Made cars would now be made in Russia.
 
Austria's Foreign Minister Traveled to London for talks with his British counter part. Kaiser Otto I visited Prague, Warsaw and Berlin to hold talks with Austria's friends.
 
Austrian Intelligence was busy trying to keep an eye on the goings on in Yugoslavia, Greece, Bulgaria, Romania, Italy, the Ukraine, Poland and Hungry. The Austrian Royal Navy had not added any capital ships to its fleet. It had added some German designed Submarines and two intelligence gathering ships.
 
The Royal Austrian Navy had seen little support in the Imperial Parliament to build capital ships. The had gotten some money to modernize the old capital ships that were left over from the old Empire. Kaiser Karl I had supported spending some money to keep them operational. Crown Prince Otto had rejected building new ships of that type. Thus cruisers, Destroyers,submarines and support vessels were the only ships to be built.
 
The Royal Austrian Navy launched a New Heavy Cruiser and a new light cruiser. The Kaiser was now looking at scrapping both of the old Imperial Battleships.
 
Kaiser Otto I had had discussions with the Navy Minister and the Commander in Chief of the Royal Austrian Navy. The Kaiser made clear that he saw no reason to support the construction of new Capital Ships. Austria had no colonies and the new Heavy cruiser would give Austria 2 fast heavy cruisers capable of showing the flag and supporting the Navy's Destroyer fleet. Currently the navy had 2 battleships which had been modernized to an extent 1 CA with a second nearing completion,2 light cruisers, 12 Destroyers,24MTBs.15 submarines,2AOs,4 Mine-layers, 4 Minesweepers and 2 Intelligence ships under construction.
 
Austria Proposed a New Naval Arms Limitation Treaty in an effort to stop another arms race. The Austrians wanted to check the Italian plans to build a lot of new capital ships.In addition the Kaiser could see no reason to spend large amounts of money building capital ships and he wanted to fund only enough ships to ensure that shipping could reach Austrian ports. Funding the Army and the Air Force would absorb a lot of the Imperial treasury.
 
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Russia however wanted to build a fleet so that could project power. The Italians were torn in two directions they also would like to replace a lot of the older ships and now felt that they could gain money from Russia for helping to design battleships for the Russian Navy. Germany had limited their building of capital ships.
 
The Italian government decided to push ahead with designing warships for the Russians. It would help to stimu;ate the Italian Naval designs and provide money for the economy. However in doing so he was upsetting the Austrian,German,British and Romanian governments.
 
Kaiser Otto I had had discussions with the Navy Minister and the Commander in Chief of the Royal Austrian Navy. The Kaiser made clear that he saw no reason to support the construction of new Capital Ships. Austria had no colonies and the new Heavy cruiser would give Austria 2 fast heavy cruisers capable of showing the flag and supporting the Navy's Destroyer fleet. Currently the navy had 2 battleships which had been modernized to an extent 1 CA with a second nearing completion,2 light cruisers, 12 Destroyers,24MTBs.15 submarines,2AOs,4 Mine-layers, 4 Minesweepers and 2 Intelligence ships under construction.

Proposal: An integral part of the Navy's deployment strategy was close cooperation with the Air Force. The Seefliegerdivision was part of the Imperial Air Force, but its operational and tactical command was transferred to the Imperial Krieg Marine (IKM). While basic flight training takes place within the framework of regular flight schools and training schools, continuing training and education is carried out by the Naval Aviation Academy, attached to the Naval Academy. Also, orders for machinery, equipment and armaments must go through the Air Ministry. But again, there is a special, separate department where "admirals" are represented and which has separate budgets. This ensures that, while maintaining the maximum degree of standardization, the Seefligerdivision gets what it needs, not just leftovers and unwanted surpluses.
 
Kaiser Otto I met with the Chancellor, the Commander of the Royal Austrian Navy and the Air Minister.> It was agreed that the Seeflieger Division while part of the Royal Austrian Air Force would remained operationial and tactical attached to the Navy. The Kaiser was thus retaining the set up that was used during the Imperial days.
 
With a smaller empire the Austrian Imperial Government would be reducing the size of the fleet.. The oldest battleships would be scrapped and the guns stripped for use in fortification.
 
The Austrian Empire was still trying to recover from the cost of the First World War. It was fortunate that the war had ended with an agreement between the powers.It had just come in time to prevent the fall of Russia to the Reds. Kaiser Karl had seen the breaking away of Hungry,Czechoslovakia and the Polish territories but with a lot of hard work he had convinced the Croatian and Slovenian parts of the empire to stay with Austria. Still Karl had come down with an illness as a result of all of the stress and the Spanish flu that hit Europe hard. Crown Prince Otto had become his fathers strong right hand to fill in for his father and assist his mother
 
Karl recovered but the doctors warned him and the Empress that his health was not fully recovered he might have 5 to 10 years but Otto would have to take on a lot more responsibilities and he would have to think about getting married and having an heir.
 
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