The "misunderstanding" that occurred in the Panama area was simply too great, with an accidental armed conflict wiping out an entire division, a matter so unbelievable that no one would dare to trust such a claim.
To explain is to disguise, it would serve no function. Not long after the incident, the Austro-Central American colonial government declared their responsibility for the affair, which was in fact a result of Franz's intervention.
By proactively taking responsibility, they could minimize and possibly recover international reputation to the greatest extent, reducing the negative impact to the lowest.
There was naturally no question of investigating responsibilities. The practices of the Austro-Central American colonial government were not mistaken; the colonial empires of those days all behaved like that.