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
Assassination of Archduke Franz Ferdinand recall (Danilo Ilić was a teacher but it is unclear if the teacher in question was Ilić as Ilić can be placed in Brod but not Loznica) so I could sent them into Bosnia.' Because of that 'I went to Loznica and either that day or very soon afterwards sent Rade and that teacher into Bosnia.' Soon thereafter occurred the Sarajevo assassination of Archduke Franz Ferdinand." On the eve of his execution, Malobabić told a priest: "They ordered me to go to Sarajevo when that assassination was to take place, and when everything was over, they ordered me to come