Bismarck began by completing and bringing to a conclusion the arrangements for a commercial treaty with Italy; at the beginning of January the King of Prussia sent Victor Emmanuel the order of the Black Eagle; Bismarck also used his influence to induce Bavaria to join in the commercial treaty and to recognise the Kingdom of Italy.  Then on January 13th he wrote to Usedom that the eventual decision in Germany would be influenced by the action of Italy; if they could not depend on the support of Italy, he hinted that peace would be maintained; in this way he hoped to force the Italians to join him.

Affairs in the Duchies gave Bismarck the opportunity for adopting with good grounds a hostile attitude towards Austria; Gablenz, the new Governor of Holstein, continued to favour the Augustenburg agitation.  Many had expected that Austria would govern Holstein as a part of the Empire; instead of doing so, with marked design the country was administered as though it were held in trust for the Prince; no taxes were levied, full freedom was allowed to the Press, and while the Prussians daily became more unpopular in Schleswig the Austrians by their leniency won the affection of Holstein.  At the end of January, they even allowed a mass meeting, which was attended by over 4000 men, to be held at Altona.  This made a very unfavourable impression on the King, and any action of Austria that offended the King was most useful to Bismarck.  “Bismarck is using all his activity to inspire the King with his own views and feelings,” wrote Benedetti, the French Ambassador, at this time.  At the end of January he felt sufficiently secure to protest seriously against the Austrian action in Holstein.  “Why,” he asked, “had they left the alliance against our common enemy, the Revolution?” Austria, in return, refused peremptorily to allow Bismarck any voice in the administration of Holstein.  Bismarck, when the despatch was read to him, answered curtly that he must consider that henceforth the relations of the two Powers had lost their intimate character; “we are as we were before the Danish war, neither worse nor better.”  He sent no answer to the Austrian despatch and ceased to discuss with them the affairs of the Duchies.

This was a fair warning to Austria and it was understood; they took it as an intimation that hostilities were intended, and from this day began quietly to make their preparations.  As soon as they did this, they were given into Bismarck’s hands; the Prussians, owing to the admirable organisation of the army, could prepare for war in a fortnight or three weeks’ time less than the Austrians would require; Austria to be secure must therefore begin to arm first; as soon as she did so the Prussian Government would be able, with full protestation of innocence, to point to the fact that they had not moved a man, and then to begin their own mobilisation, not apparently for offence but, as it were, to protect themselves from an unprovoked attack.  In a minute of February