Franz Joseph I of Austria the Empire on 6 October 1908. However a diplomatic crisis erupted, as both the Serbs and the Italians demanded compensation for the annexation, which the Austro-Hungarian government refused to entertain. The incident was not resolved until the revision of the Treaty of Berlin in April 1909, exacerbating tensions between Austria-Hungary and the Serbs. On 28 June 1914 Franz Joseph's nephew and heir Archduke Franz Ferdinand, and his morganatic wife Sophie, Duchess of Hohenberg, were assassinated by Gavrilo Princip, a Yugoslav nationalist of Serbian ethnicity, during a visit to Sarajevo. When he heard the news of the assassination, Franz Joseph said
Archduke Franz Ferdinand of Austria of Franz Joseph and Maximilian) and of his second wife, Princess Maria Annunciata of Bourbon-Two Sicilies. In 1875, when he was only eleven years old, his cousin Francis V, Duke of Modena died, naming Franz Ferdinand his heir on condition that he add the name "Este" to his own. Franz Ferdinand thus became one of the wealthiest men in Austria. In 1889, Franz Ferdinand's life changed dramatically. His cousin Crown Prince Rudolf committed suicide at his hunting lodge in Mayerling. This left Franz Ferdinand's father, Karl Ludwig, as first in line to the throne. Karl Ludwig died of typhoid fever