The Ericsson company also established a factory for telephones and switchboards in Budapest in 1911.  Aeronautic industry The first airplane in Austria was Edvard Rusjan's design, the Eda I, which had its maiden flight in the vicinity of Gorizia on 25 November 1909.  The first Hungarian hydrogen-filled experimental balloons were built by István Szabik and József Domin in 1784. The first Hungarian designed and produced airplane (powered by a Hungarian built inline engine) was flown at Rákosmező on 4 November 1909.
In his [Wilhelm's] opinion, though, there was no need to wait patiently before taking action. The Kaiser said that Russia's stance would always be a hostile one, but he had been prepared for this for many years, and even if war broke out between Austria–Hungary and Russia, we could rest assured that Germany would take our side, in line with its customary loyalty. According to the Kaiser, as things stood now, Russia was not at all ready for war. It would certainly have to think hard before making a call to arms.  But now the leaders of Austria–Hungary, especially General Count Leopold von Berchtold, backed by its ally Germany, decided to confront Serbia militarily before it could incite a revolt; using the assassination as an excuse, they presented a list of ten demands called the July Ultimatum,  expecting Serbia would never accept.
The count finally signed the trialist proclamation after heavy pressure from the king on 23 October 1918.  Language was one of the most contentious issues in Austro-Hungarian politics. All governments faced difficult and divisive hurdles in deciding on the languages of government and of instruction. The minorities sought the widest opportunities for education in their own languages, as well as in the "dominant" languages—Hungarian and German. By the "Ordinance of 5 April 1897", the Austrian Prime Minister Count Kasimir Felix Badeni gave Czech equal standing with German in the internal government of Bohemia; this led to a crisis because of nationalist German agitation throughout the empire.
 After the Austrian defeat at Königgrätz, the government realized it needed to reconcile with Hungary to regain the status of a great power. The new foreign minister, Count Friedrich Ferdinand von Beust, wanted to conclude the stalemated negotiations with the Hungarians. To secure the monarchy, Emperor Franz Joseph began negotiations for a compromise with the Hungarian nobility, led by Ferenc Deák. On 20 March 1867, the re-established Hungarian parliament at Pest started to negotiate the new laws to be accepted on 30 March.
7% (17, 948) 12. 8% (2, 333, 979) 24. 9% (653, 184) 11. 0% (2, 007, 916) 0. 7% (17, 592) 7. 1% (1, 306, 384) 1. 3% (33, 759) 5. 0% (911, 227) 0. 8% (21, 231) Unitarian 0. 4% (74, 275) 0. 0% (21) 0. 1% (17, 066) 0. 0 (386) Largest cities Data: census in 1910 Rank Current English name Contemporary official name Present-day country Population in 1910 Present-day population 1.
 Trade with the geographically neighbouring Russia, however, had a relatively low weight (1910: 3% of all exports /mainly machinery for Russia, 7% of all imports /mainly raw materials from Russia). Automotive industry Prior to World War I, the Austrian Empire had five car manufacturer companies. These were: Austro-Daimler in Wiener-Neustadt (cars trucks, buses),  Gräf & Stift in Vienna (cars),  Laurin & Klement in Mladá Boleslav (motorcycles, cars),  Nesselsdorfer in Nesselsdorf (Kopřivnice), Moravia (automobiles), and Lohner-Werke in Vienna (cars).
The Cisleithanian (Austrian) part contained about 57 percent of the total population and the larger share of its economic resources, compared to the Hungarian part. There were three parts to the rule of the Austro-Hungarian Empire: the common foreign, military, and a joint financial policy (only for diplomatic, military, and naval expenditures; later also included the Bosnian affairs) under the monarch the "Austrian" or Cisleithanian government (Lands Represented in the Imperial Council) the "Hungarian" or Transleithanian government (Lands of the Crown of Saint Stephen) Electoral districts of Austria and Hungary in the 1880s.
Many of the state institutions and the modern administrative system of Hungary were established during this period. Economic growth centered on Vienna and Budapest, the Austrian lands (areas of modern Austria), the Alpine region and the Bohemian lands. In the later years of the 19th century, rapid economic growth spread to the central Hungarian plain and to the Carpathian lands. As a result, wide disparities of development existed within the empire.
 These establishments, which in the middle of the 19th century had had a predominantly German character, underwent in Galicia a conversion into Polish national institutions, in Bohemia and Moravia a separation into German and Czech ones. Thus Germans, Czechs and Poles were provided for. But now the smaller nations also made their voices heard: the Ruthenians, Slovenes and Italians. The Ruthenians demanded at first, in view of the predominantly Ruthenian character of rural East Galicia, a national partition of the Polish University of Lwów. Since the Poles were at first unyielding, Ruthenian demonstrations and strikes of students arose, and the Ruthenians were no longer content with the reversion of a few separate professorial chairs, and with parallel courses of lectures.
 Initially telephony was available in the homes of individual subscribers, companies and offices. Public telephone stations appeared in the 1890s, and they quickly became widespread in post offices and railway stations. Austria–Hungary had 568 million telephone calls in 1913; only two Western European countries had more phone calls: the German Empire and the United Kingdom. The Austro-Hungarian Empire was followed by France with 396 million telephone calls and Italy with 230 million phone calls.  In 1916, there were 366 million telephone calls in Cisleithania, among them 8.
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However, the Royal Italian Army were halted on the river, where four battles took place over five months (23 June – 2 December 1915). The fight was extremely bloody and exhausting for both the contenders.  On 15 May 1916, the Austrian Chief of Staff Conrad von Hötzendorf launched the Strafexpedition ("punitive expedition"): the Austrians broke through the opposing front and occupied the Asiago plateau. The Italians managed to resist and in a counteroffensive seized Gorizia on 9 August. Nonetheless, they had to stop on the Carso, a few kilometres away from the border. At this point, several months of indecisive trench warfare ensued (analogous to the Western front). As the Russian Empire collapsed as a result of the Bolshevik Revolution and Russians ended their involvement in the war, Germans and Austrians were able to move on the Western and Southern fronts much manpower from the erstwhile Eastern fighting.
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The Act of 5 November 1916 was proclaimed then to the Poles jointly by the Emperors Wilhelm II of Germany and Franz Joseph of Austria-Hungary. This act promised the creation of the Kingdom of Poland out of territory of Congress Poland, envisioned by its authors as a puppet state controlled by the Central Powers, with the nominal authority vested in the Regency Council. The origin of that document was the dire need to draft new recruits from German-occupied Poland for the war with Russia. Following the Armistice of 11 November 1918 ending the World War I, in spite of the previous initial total dependence of the kingdom on its sponsors, it ultimately served against their intentions as the cornerstone proto state of the nascent Second Polish Republic, the latter composed also of territories never intended by the Central Powers to be ceded to Poland.
The Battle of Zborov (1917) was the first significant action of the Czechoslovak Legions, who fought for the independence of Czechoslovakia against the Austro-Hungarian army. Italian front 1915–1918 In May 1915, Italy attacked Austria–Hungary. Italy was the only military opponent of Austria–Hungary which had a similar degree of industrialization and economic level; moreover, her army was numerous (≈1, 000, 000 men were immediately fielded), but suffered from poor leadership, training and organization. Chief of Staff Luigi Cadorna marched his army towards the Isonzo river, hoping to seize Ljubljana, and to eventually threaten Vienna.
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On 24 October 1917, Austrians (now enjoying decisive German support) attacked at Caporetto using new infiltration tactics; although they advanced more than 100 km (62. 14 mi) in the direction of Venice and gained considerable supplies, they were halted and could not cross the Piave river. Italy, although suffering massive casualties, recovered from the blow, and a coalition government under Vittorio Emanuele Orlando was formed. Italy also enjoyed support by the Entente powers: by 1918, large amounts of war materials and a few auxiliary American, British, and French divisions arrived in the Italian battle zone.
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