he had written a few days before. After a few days of indecision a compromise therefore was agreed upon. The joint administration of the Duchies was to be given up; Austria was to administer Holstein, Prussia, Schleswig; they both undertook not to bring the question before the Diet; the Duchy of Lauenburg was to be handed over absolutely to the King of Prussia, the Emperor of Austria receiving two million thalers for his share. Lauenburg was the first new possession which Bismarck was able to offer to the King; the grateful monarch conferred on him the title of Count, and in later years presented to him large estates out of the very valuable royal domains. It was from Lauenburg that in later years the young German Emperor took the title which he wished to confer on the retiring Chancellor. [Illustration] CHAPTER X. OUTBREAK OF WAR WITH AUSTRIA. 1865-1866. The arrangement made at Gastein could not be permanent; it was only a temporary expedient to put off the conflict which henceforward was inevitable--inevitable, that is, if the Emperor of Austria still refused to sell Holstein to Prussia. It was, however, so far as it went, a great gain to Prussia, because it deprived Austria of the esteem of the other German States. Her strength had hitherto lain in her strict adhesion to popular feeling and to what the majority of the Germans, Princes and people alike, believed was justice; by coming to a separate agreement with Prussia, she had shaken their confidence. Bavaria especially was much annoyed by this change of front, and it seemed probable that the most important of the southern States would soon be ranged on the side of Prussia. This was a consummation which Bismarck ardently desired, and to which he addressed himself with much energy.