The completeness of Prussia's triumph over Austria and her German allies, together with the preparations of the Hungarians for revolt, decided the Court of Vienna to accept the Prussian terms which were embodied in the Treaty of Prague (Aug. 23); they were, the direct cession of Venetia to Italy; the exclusion of Austria from German affairs and her acceptance of the changes there pending; the cession to Prussia of Schleswig-Holstein; and the payment of 20,000,000 thalers (about £3,000,000) as war indemnity. The lenience of these conditions was to have a very noteworthy result, namely, the speedy reconciliation of the two Powers: within twenty years they were firmly united in the Triple Alliance with Italy (see Chapter X.). Some difficulties stood in the way of peace between Prussia and her late enemies in the German Confederation, especially Bavaria. These last were removed when Bismarck privately disclosed to the Bavarian Foreign Minister the secret demand made by France for the cession of the Bavarian Palatinate. In the month of August, the South German States, Bavaria, Würtemberg and Baden, accepted Prussia's terms; whereby they paid small war indemnities and recognised the new constitution of Germany. Outwardly they formed a South German Confederation; but this had a very shadowy existence; and the three States by secret treaties with Prussia agreed to place their armies and all military arrangements, in case of war, under the control of the King of Prussia. Thus within a month from the close of "the Seven Weeks' War," the whole of Germany was quietly but firmly bound to common action in military matters; and the actions of France left little doubt as to the need of these timely precautions. On those German States which stood in the way of Prussia's territorial development and had shown marked hostility, Bismarck bore hard. The Kingdom of Hanover, Electoral Hesse (Hesse-Cassel), the Duchy of Nassau, and the Free City of Frankfurt were annexed outright, Prussia thereby gaining direct contact with her Westphalian and Rhenish Provinces. The absorption of Frankfurt-on-the-Main, and the formation of a new league, the North German Confederation, swept away all the old federal machinery, and marked out Berlin, not Vienna or Frankfurt, as the future governing centre of the Fatherland. It was doubtless a perception of the vast gains to the national cause which prompted the Prussian Parliament to pass a Bill of Indemnity exonerating the King's Ministers for the illegal acts committed by them during the "Conflict Time" (1861-66)--acts which saved Prussia in spite of her Parliament.