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After defeating the Turks together with the Serbs in the 1878 war, Austria annexed Bosnia and Herzegowina. This did not sit well with the Serbs, who had expected to build a "Greater Serbia", including the countries that Austria had now kept for themselves.

After that and moreover, the Serbs were often treated as second-class citizens within the Austrian Empire, the German Austrians and the Magyars of Hungary being the dominant groups.

The murder of Franz Ferdinand was plotted by a group of Serbian activists who saw his visit to Serajewo on the very commemoration date of the defeat of the Turks by the Serbs as a provocation. It is ironic that of all the people in power in the Austrian Empire, Franz Ferdinand probably was most in favor of more political rights and a form of autonomy for the Serbs.

After his murder, the Austrians issued an ultimatum to the Serbian republic that unless they agreed to an Austrian inquiry on Serbian soil (with the Austrians to have unlimited powers) Serbia would be invaded by Austria.

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