pp. 315-318. See too volume viii. of Ollivier's work, _L'Empire
libéral_, published in 1904; and M. de la Gorce's work, _Histoire du
second Empire_, vol. vi. (Paris 1903).

The completeness of Prussia's triumph over Austria and her German
allies, together with the preparations of the Hungarians for revolt,
decided the Court of Vienna to accept the Prussian terms which were
embodied in the Treaty of Prague (Aug. 23); they were, the direct
cession of Venetia to Italy; the exclusion of Austria from German
affairs and her acceptance of the changes there pending; the cession to
Prussia of Schleswig-Holstein; and the payment of 20,000,000 thalers
(about £3,000,000) as war indemnity. The lenience of these conditions
was to have a very noteworthy result, namely, the speedy reconciliation
of the two Powers: within twenty years they were firmly united in the
Triple Alliance with Italy (see Chapter X.).

Some difficulties stood in the way of peace between Prussia and her late
enemies in the German Confederation, especially Bavaria. These last were
removed when Bismarck privately disclosed to the Bavarian Foreign
Minister the secret demand made by France for the cession of the
Bavarian Palatinate. In the month of August, the South German States,
Bavaria, Würtemberg and Baden, accepted Prussia's terms; whereby they
paid small war indemnities and recognised the new constitution of
Germany. Outwardly they formed a South German Confederation; but this
had a very shadowy existence; and the three States by secret treaties
with Prussia agreed to place their armies and all military arrangements,
in case of war, under the control of the King of Prussia. Thus within a
month from the close of "the Seven Weeks' War," the whole of Germany was
quietly but firmly bound to common action in military matters; and the
actions of France left little doubt as to the need of these timely