The blow which King Ferdinand had inflicted on the prestige of the Young Turks in October 1908, by proclaiming his independence, naturally lent lustre to the Bulgarian cause in Macedonia. Serbia, baffled by the simultaneous Austrian annexation of Bosnia and Hercegovina, and maddened by the elevation of Bulgaria to the rank of a kingdom (its material progress had hitherto been discounted in Serbian eyes by the fact that it was a mere vassal principality), seemed about to be crushed by the two iron pots jostling it on either side. Its international position was at that time such that it could expect no help or encouragement from western Europe, while the events of 1909 (cf. p. 144) showed that Russia was not then in a position to render active assistance. Greece, also screaming aloud for compensation, was told by its friends amongst the great powers that if it made a noise it would get nothing, but that if it behaved like a good child it might some day be given Krete. Meanwhile Russia, rudely awakened by the events of 1908 to the real state of affairs in the Near East, beginning to realize the growth of German influence at Constantinople, and seeing the unmistakable resuscitation of Austria-Hungary as a great power, made manifest by the annexation of Bosnia and Hercegovina, temporarily reasserted its influence in Bulgaria. From the moment when Baron Aehrenthal announced his chimerical scheme of an Austrian railway through the _Sandjak_ of Novi Pazar in January 1908— everybody knows that the railway already built through Serbia along the Morava valley is the only commercially remunerative and strategically practicable road from Berlin, Vienna, and Budapest to Salonika and Constantinople—Russia realized that the days of the Mürzsteg programme were over, that henceforward it was to be a struggle between Slav and Teuton for the ownership of Constantinople and the dominion of the Near East, and that something must be done to retrieve the position in the Balkans which it was losing. After Baron Aehrenthal, in January 1909, had mollified the Young Turks by an indemnity, and thus put an end to the boycott, Russia in February of the same year liquidated the remains of the old Turkish war indemnity of 1878 still due to itself by skilfully arranging that Bulgaria should pay off its capitalized tribute, owed to its ex-suzerain the Sultan, by very easy instalments to Russia instead.