"Ahem!" Vaschet cleared his throat, drawing the attention of all present before he spoke. "Gentlemen, it is undoubtedly best if we can avoid the outbreak of another war. This conflict is nearing its end, and there is no need to ignite new hostilities. Such a course would not serve the interests of any nation. The German Empire believes that the Austro-Hungarian Empire and the Kingdom of Italy would be better off resolving their differences through peaceful negotiations."
Paul Boselli nodded repeatedly. "The Kingdom of Italy does not desire war; we are merely responding defensively. The terms proposed by the Austro-Hungarian Empire are simply too harsh for us to accept. Should they force the conflict upon us, we will be compelled to fight to the death."
Boselli's expression bore the weight of grievance, as though all these troubles had been thrust upon them by others.
"As the victors of this war, the Austro-Hungarian Empire is entitled to the rightful spoils!" Crown Prince Karl's face remained flushed with anger.
"The Kingdom of Italy is willing to pay reparations to the Austro-Hungarian Empire, alongside other compensations. However, we cannot, in good conscience, comply with the demands of the Austro-Hungarian Empire. Those terms are far too excessive for us to bear," Boselli explained.
"Mr. Boselli, what terms does the Kingdom of Italy find acceptable?" Vaschet inquired.
"We find the demand for five hundred billion kronen in war reparations to be insupportable," Boselli replied. "If the sum could be reduced to one billion marks, we could accept it."
"What?" Crown Prince Karl nearly leapt from his seat. A billion marks might seem like a vast sum to an ordinary person, but to a nation, it was paltry. Especially when compared to the enormous reparations received by Germany after this war, one billion marks was laughable, an insult to the Austro-Hungarian Empire.
"One billion marks? Is Italy attempting to humiliate the Austro-Hungarian Empire?" Baron Berchtold's face was similarly clouded with fury. The reparations Italy had agreed to pay Germany were a staggering two hundred billion marks—an order of magnitude more substantial than the mere one billion marks they were now offering to Austria-Hungary.
"Indeed, one billion marks is far too little," Vaschet agreed.
Boselli hesitated, then, with a grimace of pain, replied, "Very well, we could offer twenty billion marks. Anything beyond that is beyond Italy's means."
"Twenty billion marks?" Crown Prince Karl scowled, his rage intensifying. "Is this some kind of joke? Such a meager amount—Austria-Hungary would rather go to war than accept such an insult! If the Imperial Army defeats you, I assure you, the cost will be far greater!"
"Fifty billion marks. The Kingdom of Italy shall pay fifty billion marks in reparations to the Austro-Hungarian Empire. The German Empire believes this sum is more reasonable," Vaschet interjected.
"Very well, Your Excellency. In light of the German Empire's involvement, the Kingdom of Italy is willing to offer fifty billion marks in reparations," Boselli conceded.
"Fifty billion marks? Impossible! It still falls far short of the demands set by the Austro-Hungarian Empire!" Crown Prince Karl refused to relent, his face contorted with anger.
Before the Crown Prince could escalate further, Baron Berchtold intervened, restraining him.
"Your Excellency, fifty billion marks is indeed far from our expectations. However, we shall report this proposal to our homeland. If they consent, we shall have no objections," Berchtold said.
Crown Prince Karl glared at Berchtold, unsure of why he had taken this course. Yet, the Crown Prince was no fool. He wisely bit his tongue, recognizing there was little to gain from further antagonizing the situation.
Vaschet nodded. "I am confident that His Majesty the Emperor will agree."
"Does the Austro-Hungarian Empire still insist that the Kingdom of Italy cede Venice and its eastern territories?" Vaschet asked, his tone measured.
"Venice is a key city for the Kingdom of Italy. However, in the interest of peace, we are willing to cede it to the Austro-Hungarian Empire," Boselli replied, shaking his head in reluctant acceptance.
On the Austro-Hungarian side, there was no objection. They had long coveted those territories, and the prospect of acquiring them was a satisfactory concession.
"As for the Austro-Hungarian Empire's demand for Italy's overseas colonies, that is a more difficult matter. Libya has already been ceded to the Empire. Perhaps Austria-Hungary might take Italy's East African territories instead? Your Highness, Baron Berchtold, what is your opinion?" Vaschet inquired.
"Take East Africa? Austria-Hungary, too, desires Libya. How about this: we exchange territories? Austria-Hungary receives Libya, while the German Empire claims Italy's East African colonies," Crown Prince Karl proposed.
It was clear from his suggestion that the Crown Prince had set his sights on Libya's newly discovered oil reserves. Without this newfound resource, he would have shown no interest in that barren land. But with oil now a highly prized commodity, gaining control over Libya would provide Austria-Hungary a tremendous strategic advantage.
"I regret, Your Highness, but the treaty has already been signed. Libya now belongs to the German Empire. Moreover, the Empire has made considerable investments in Libya and is poised to reap its rewards. We cannot, under any circumstances, transfer control of Libya to another," Vaschet replied, his stance unwavering.
"Your Excellency, we are allies with the German Empire. The German Empire, as a powerful nation, should be considerate of its allies," Crown Prince Karl pressed, his voice tinged with a mixture of frustration and hope.
But Vaschet remained firm, his response increasingly resolute.
Baron Berchtold quickly interjected, "The Austro-Hungarian Empire would be amenable to acquiring Italy's East African territories. However, the final decision rests with our homeland. We have no authority to make this determination."
"Very well, then. As for the remaining terms, they should align with the treaty between the German Empire and the Kingdom of Italy. The key issue is the war reparations. The German Empire does not wish to see the war reignited, and we ask that the Austro-Hungarian Empire carefully consider the German Empire's suggestions when making their decision," Vaschet concluded.