"The Empire has set forth these three conditions. Should the Kingdom of Spain be willing to accept them, then this conflict may come to an end. However, if the Kingdom of Spain refuses, I regret to say that the negotiations shall collapse. All subsequent consequences will be borne by the Kingdom of Spain!" Vashet declared, his gaze shifting between the American and Spanish ambassadors.
The American ambassador furrowed his brows, taken aback by the unexpected demands from the Germans. The Spanish ambassador, on the other hand, turned pale, perceiving these terms as nothing short of a lion's greedy demand. Yet, seeing the unyielding attitude of the Germans, he understood that if Spain rejected these conditions, the conflict could very well escalate into a full-scale war. And, even more troubling, the war's scope might expand, which would undoubtedly spell disaster for Spain.
The Spanish ambassador looked pleadingly at the American ambassador, silently hoping for some form of intervention.
"Ahem! Minister Vashet, your nation's demands seem excessively harsh. The dispute between Germany and Spain originates from Gibraltar. Spain could agree to lease Gibraltar to Germany, and that would resolve the conflict, wouldn't it? This arrangement would be beneficial for both Germany and Spain," the American ambassador suggested.
Vashet glanced at the American ambassador, his tone unwavering as he replied, "The leasing of Gibraltar was an offer made by the Empire before the conflict began. However, the Kingdom of Spain rejected the Empire's request without hesitation, thus humiliating the Empire. Now, with the conflict already in full swing, is it realistic to expect the Empire to settle for its original request and end the war?"
Clearly, Vashet's reasoning adhered to a bold and unrelenting logic. However, with Germany now holding an undeniable advantage, if Spain refused the German terms and negotiations broke down, leading to the outbreak of war, the consequences would be unbearable for Spain.
"Minister Vashet, as for the possibility of ceding Gibraltar to the German Empire, I must consult with my government. However, the remaining two conditions, I believe His Majesty the King will never accept. Ten billion marks is an astronomical sum for Spain; we simply cannot afford such a payment. Furthermore, the Balearic Islands are an integral part of Spain's sovereign territory, and we can never consider ceding them," the Spanish ambassador responded.
In the aftermath of this war, the Spanish were well aware that they would likely lose Gibraltar. If the Germans were lenient, Spain might retain sovereignty over Gibraltar while leasing it at a nominal price. Should the Germans take a harsher stance, Gibraltar would be ceded outright.
However, the enormous compensation of ten billion marks, coupled with the demand for the Balearic Islands, was an unacceptable proposition. Spain's financial state was precarious; such a sum could easily bankrupt the nation. Moreover, the Balearic Islands were a cherished part of Spain's homeland—giving them up was inconceivable.
Vashet shook his head slightly. "The Empire has already expended significant resources, including ammunition and other war supplies. The Empire has also suffered considerable casualties. These expenses must be compensated. Therefore, ten billion marks is not excessive. As for the Balearic Islands, they have been under the control of various powers—Roman, Vandal, Byzantine, Arab, and Aragonese. Aragon initially governed the islands as a vassal of the Mahoka Empire until 1344, after which they were incorporated into the Empire. Later, they were absorbed by Spain. In the early 18th century, they were occupied by Britain and only became part of Spain in 1833. Thus, Spain's rule over the islands has been relatively brief and cannot be considered a truly native territory. The islands, therefore, should be used to compensate for the Empire's losses and calm the Empire's wrath. This, indeed, is a very reasonable arrangement. Should the Kingdom of Spain persist in its obstinacy, the consequences will be dire. The Empire's dignity cannot be challenged. Any nation that dares to provoke the Empire will pay a heavy price for it."
"You have two days," Vashet continued, his voice firm. "Two days to consider. Should the Kingdom of Spain fail to accept the Empire's terms by then, it will signal the collapse of these negotiations, and there will be no further opportunity for peace talks."
With that, Vashet turned and left the American Embassy. His departure did not carry the tone of a negotiator but rather that of someone delivering an ultimatum.
As Vashet exited, the Spanish ambassador's face drained of color. He knew that the Germans were serious this time. Refusing their demands would likely result in severe consequences.
The American ambassador's expression darkened as well. Even with America intervening as a mediator, the Germans had dared to present such harsh terms—clearly, they had little regard for America's role in this matter.
"What should we do now?" the Spanish ambassador asked, his face a mask of despair.
"Report to your government," the American ambassador replied.
It was clear that the Germans had no respect for America's influence, and in this matter, the United States seemed powerless to intervene. If Spain rejected Germany's terms, the conflict could very well intensify, and Germany would likely escalate its offensive. In such a case, Spain would have no hope of defending itself.
"Very well, let my government deal with this headache," the Spanish ambassador muttered, resigned.
The Germans' hardline stance left him with no recourse. The only thing he could do now was pray—pray that Spain would survive this crisis.
When the Spanish ambassador sent the German demands to Spain, King Alfonso XIII was livid.
"My God! The Germans are being insatiable! They not only want Gibraltar, but they also demand ten billion marks in compensation and even the cession of the Balearic Islands! Are they treating us like a defeated nation, ripe for plunder?" King Alfonso raged.
The Spanish military and political ministers remained silent, heads bowed. The terms put forth by the German government had caught them off guard. Still, given Germany's status as the world's strongest power, they understood why the Germans might treat Spain as vulnerable, ripe for subjugation.