Austria now sought in the question of the Elbe duchies an occasion for re-establishing her influence in Germany. The ambitions of Prussia were notorious, and Austria had no wish to see her rival still further strengthened by the annexation of the duchies. In this attitude she was sure of the support of the German princes, and of German public opinion, which was enthusiastically in favour of the Augustenburg claimant. She therefore took up the cause of Duke Frederick, and under her influence a small majority of the federal diet decided to request the two powers to invest him with the sovereignty of Holstein. Bismarck's reply was to deny the competency of the diet to interfere; and in the Prussian parliament the minister of war moved for a special grant for the creation of a war-harbour at Kiel. Against this Austria protested, as having the same right as Prussia to Kiel; an angry correspondence followed; but neither power was quite prepared for war, and on the 20th of August 1865 the convention of Gastein, to use Bismarck's phrase, "papered over the cracks." Pending a settlement, Schleswig was to be occupied and administered by Prussia, Holstein by Austria; while Lauenburg was made over absolutely to Prussia in return for a money payment. This was so far a diplomatic victory for Prussia, as it ignored entirely the claims of the duke of Augustenburg. Hostile attitude of France. Bismarck had consented to the convention of Gastein in order to gain time to prepare the ground for the supreme struggle with Austria for the hegemony of Germany. He had no intention of postponing the issue long; for the circumstances of the two powers were wholly favourable to Prussia. The Prussian army had attained an unprecedented excellence of organization and discipline; the Prussian people, in spite of the parliamentary deadlock, were loyal and united; while in Austria army and state were alike disorganized by nationalist discontent and the breakdown of the centralized system. But there were other factors to be considered. The attitude of Napoleon was dubious; the active alliance of Italy was necessary to the certainty of Prussian success; and the policy of Italy depended ultimately upon that of France. Lastly, the conscience of King William, though since the acquisition of Lauenburg he had "developed a taste for conquest," shrank from provoking war with a German power. The news of the convention of Gastein, which seemed to re-cement the union of Germany, had been received in France with clamorous indignation; and on the 29th of August, under pressure of public opinion, the French government issued a circular note denouncing it as an outrage on national liberty and European law, the protest being backed by note of the 14th of September circulated by Lord John Russell on behalf of the British government. But Napoleon was himself little inclined to use the warlike tone of his people; and Bismarck found it