In 1867, the Austrian Empire enacted a reform known as the Austro-Hungarian Compromise of 1867. This established separate parliaments and administrative operations for the historic kingdom of Hungary and the Austrian Empire, whilst both remained unified under a single head of state as Emperor of Austria and King of Hungary. This was a reaction to the Habsburg Empire’s crippling debt following a number of wars and a need for support from the kingdom of Hungary. The region of Istria and the city of Trieste were parts of the former Kingdom of Illyria, which was dissolved in 1849 and reconstituted to form part of the Austrian Littoral. This subsequently became part of Cisleithania (northern and western Austria-Hungary) following the Compromise of 1867. The area had long been home to many different nationalities and contained part of Friuli which was a remnant of the Venetian Republic, most of which was ceded to Italy following the Third Italian War of Independence in 1866.
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