On 30 January 1889, tragedy strikes the House of Habsburg when liberal Crown Prince Rudolf of Austria-Hungary and his young mistress Baroness Mary Vetsera are found dead at the hunting lodge at Mayerling in the Vienna Woods, 24 km southwest of the capital, in an apparent murder-suicide by Rudolf. In Vienna, and at Mayerling, imperial officials contrive to hide the events of the Mayerling incident to prevent a massive public scandal, misleading the emperor and the empress about the true nature of the deaths. Rudolph’s letters and the report by Professor Widerhoffer finally reveal the truth to the royal couple. The episode, narrated in hindsight, ends with news of the assassination of the Empress in 1898 in Geneva.

Britain’s King Edward VII makes a visit to the Royal Russian yacht to discuss an alliance with Russia. Meanwhile, Russia’s Foreign Minister Alexander Izvolsky, begins intriguing to have the Bosphorus opened to the Black Sea Fleet, preferring access to the Dardanelles over guaranteeing Serbian sovereignty against Austria in the Balkans. He quickly finds himself outplayed by Alois Lexa von Aehrenthal when Austria rapidly annexes the Turkish territory of Bosnia and Herzegovina, precipitating the Bosnian crisis. In its wake and with the sting of the loss to Japan still fresh, Russia is again outwitted and embarrassed by diplomatic intrigues and forces beyond its borders.

Franz Josef fears for Austria-Hungary’s future in the hands of his reform-minded nephew and heir-presumptive Franz Ferdinand, especially because of the time that he spends with Kaiser Wilhelm. However, he soon gets news of the assassination of Franz Ferdinand and his lower-ranked wife, Sophie Chotek, in Sarajevo. Initially, he accepts the “providence” of the event and refuses calls to mobilise the army and to punish Serbia. However, the Kaiser quickly insists on immediate and decisive action against Serbia, dismissing the preparedness and will of Russia, downplaying the military threat from France and setting a chain of events in motion that leads to the outbreak of the First World War.