Chapter 482: Bosnia
In March 1878, while the Russo-Turkish War was still ongoing, Austria-Hungary, in accordance with a prior agreement with Russia, moved its troops into Sarajevo just as Ottoman rule over the Balkans was crumbling. This arrangement had been Russia's way of keeping Austria-Hungary neutral during the war.
Due to East Africa's interference, Russia's expansion in Central Asia and the Middle East had not gone as smoothly as in history. Fearing a shift in Austria-Hungary's stance, Russia had offered up Bosnia as a bargaining chip.
The Bosnia region—modern-day Bosnia and Herzegovina—was one of the most turbulent areas in European history. Its capital, Sarajevo, was infamous as the trigger point of World War I.
From Ernst's perspective, Bosnia wasn't especially valuable. However, it lay at the crossroads of civilization—where Catholicism, Orthodoxy, and Islam all collided. It was a hotspot for cultural conflict.
Even in the 21st century, Bosnia seemed peaceful on the surface, but Ernst believed that with just a little provocation, the region could plunge back into chaos. It was an even more dysfunctional state than Austria-Hungary's dual monarchy system: two governments (Bosnia and Herzegovina), three presidents (one for each major faith group), and two capitals (Banja Luka and Sarajevo).
As Austria-Hungary occupied Bosnia, the Hechingen Consortium followed, rapidly acquiring land.
Under Ottoman rule, most of Bosnia's land was held by the Timar class—similar to European feudal lords.
However, the Timar system differed from Western feudalism. The Ottoman Empire had stronger central control, limiting the power of landowners. For instance, land couldn't be inherited (except for a few exceptions), and most of it had to be distributed to farmers for hereditary cultivation. Lords couldn't freely seize land, and their personal holdings were limited. Taxes were also monitored by the empire.
As Ottoman military expansion stalled, and the ruling class became corrupt, Timars could no longer earn through war and began exploiting the lower classes to maintain their income. Restrictions became meaningless.
By the late 17th century, land consolidation accelerated. Timars began using any means to seize land—developing private fields and bankrupting peasants.
Thus, the Hechingen Consortium's land acquisition proceeded smoothly, ultimately absorbing 30% of Bosnia's arable land.
Of course, the collapse of Ottoman rule wasn't the only reason for their success. More importantly, other major powers simply weren't interested in Bosnia.
Over 40% of Bosnia was mountainous, 20% hilly, only 5% was flatland, and nearly 30% consisted of karst terrain. In Europe, that made it one of the worst places to invest—comparable to Guizhou in the Far East, although even Guizhou had more plains and was three times larger.
After Austria-Hungary's occupation, few domestic business groups showed interest—except the Hechingen Consortium.
Working with the military, the Consortium was able to purchase land from the Timars at low prices. To pressure them further, they even stirred up unrest.
They spread rumors that Austria-Hungary planned to confiscate Muslim lands and purge the Islamic elite. This sparked over thirty major riots, causing serious trouble for the military.
These purges were indeed part of Austria-Hungary's plan—but they had hoped to proceed quietly. Despite the area being easily occupied, local power structures were still strong and needed gradual dismantling.
General Ronaldinho from the Austrian military angrily confronted Hechingen agent Belk: "Mr. Belk! Are your people spreading these rumors? Over thirty riots broke out because of them. You've created a huge mess for us!"
The Consortium was supposed to proceed discreetly—but now the region was in turmoil.
Belk feigned innocence. "General Ronaldinho, how could that be? Our Bosnia Agricultural Development Company is a law-abiding business. We would never disrupt local peace and unity."
"Hmph. Don't take me for a fool. You're clearly doing this for land."
"General, that's pure speculation. You need proof. Sure, we benefited—but it could just as easily be anti-Ottoman elements sowing discord to resist imperial rule."
Then Belk handed over a letter. "This is from your father. He asked us to deliver it. Read it, then decide."
After reading, the once-righteous Ronaldinho changed his tune. "If these rumors were spread by enemies of the Ottomans, then I suppose it makes sense. Such dissidents must be dealt with severely."
Belk pressed further. "Indeed. For the good of the Empire, we must also begin reeducating the local population. They must understand their place, don't you agree?"
Ronaldinho squinted. "Mr. Belk, who exactly are you speaking for?"
Belk replied, "Why, for fellow Germans, of course. Don't you think there are too few Germans in the Empire? That's not good for stability."
Ronaldinho narrowed his eyes. "Mr. Belk, who are you really working for?"
Belk smiled calmly. "General, these are just my personal opinions—nothing more. This conversation stays between us."
Of course, Ronaldinho didn't believe him. Belk's company clearly had powerful backing. Few groups could acquire so much land in Bosnia. Still, Belk had a point—Austria-Hungary's biggest instability was its lack of ethnic Germans.
"But Bosnia is populated only by Slavs," Ronaldinho argued. "There are no Germans here."
Belk smiled. "Who said that? I've seen plenty of people in Bosnia who were forced to become Slavs under Ottoman rule. If we help them reclaim their identity, they'll return to the German nation. Bosnia has always been imperial land—foreign rulers just altered history to deceive the people."
Belk's words made Ronaldinho even more convinced this wasn't just business. Behind Belk stood the Hechingen Consortium—and their actions were part of a larger plan to Germanize Bosnia. Once they controlled the economy, culture would follow.
The Ottoman Empire had used similar methods—tax policies and assimilation had made Muslims the majority in Bosnia.
Austria-Hungary, on the other hand, had weak responses to nationalism. And with Hungary blocking many reforms, the government had to rely on private actors.
Bosnia's weak economy and sparse population gave the Consortium an opening. If they applied their East African model here, it might help stabilize imperial rule.
Historically, Austria-Hungary ruled Bosnia for over 20 years—only to see Serbia eventually gain the upper hand. Ernst had found that outcome unacceptable. Though he wouldn't openly blame Franz, he understood the political constraints he faced.
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