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 employed a staff of sixteen. His authority was reinforced in 1907 when he secured the retirement of the Emperor's confidant Friedrich von Beck-Rzikowsky as Chief of the General Staff. Beck's successor, Franz Conrad von Hötzendorf, was personally selected by Franz Ferdinard. Franz in 1913, as heir-presumptive to the elderly emperor, had been appointed inspector general of all the armed forces of Austria-Hungary ("Generalinspektor der gesamten bewaffneten Macht"), a position superior to that previously held by Archduke Albrecht and including presumed command in wartime. In 1894 Franz Ferdinand met Countess Sophie Chotek, a lady-in-waiting to Archduchess Isabella, wife of Archduke Friedrich,