Bosnia and Herzegovina in Austria - Hungary The Condominium of Bosnia and Herzegovina was established when Bosnia Vilayet was occupied by Austria - Hungary after the Congress of Berlin in 1878 , while officially remaining part of the Ottoman Empire . Three decades later , in 1908 , Austria - Hungary formally annexed the occupation zone and put it under joint control of Austria and Hungary . History . Occupation . Following the Russo - Turkish War of 1877 - 78 , in June and July 1878 the Congress of Berlin was organized by the Great Powers . The resulting Treaty of Berlin caused Bosnia and Herzegovina to nominally remain under sovereignty of the Ottoman Empire , but was de facto ceded to Austria - Hungary , which also obtained the right to garrison the Sanjak of Novi Pazar . The Austro - Hungarian Army engaged in a major mobilization effort to prepare for the assault on Bosnia and Herzegovina , commanding by the end of June 1878 a force of 82 , 113 troops , 13 , 313 horses and 112 cannons in the VI , VII , XX , and XVIII infantry divisions as well as a rear army in the Kingdom of Dalmatia . The primary commander was Josip Filipović ; the forward XVIII infantry division was under the command Stjepan Jovanović , while the rear army commander in Dalmatia was Gabriel Rodić . The occupation of Bosnia and Herzegovina started on 29 July 1878 and was over on 20 October . The Ottoman army in Bosnia and Herzegovina at the time consisted of roughly 40 , 000 troops with 77 cannons , that combined with local militias to around 93 , 000 men . The Austro - Hungarian troops were occasionally met with ferocious opposition from elements of both Muslim and Orthodox populations there , and significant battles occurred near Čitluk , Stolac , Livno and Klobuk . Despite setbacks at Maglaj and Tuzla , Sarajevo was occupied in October 1878 . Austro - Hungarian casualties amounted to over 5 , 000 and the unexpected violence of the campaign led to recriminations between commanders and political leaders . The fierce resistance of Muslim was expected as Austrian - Hungarians were aware that their occupation means that Bosnian Muslims will lose their privileged status based on their religion . Tensions remained in certain parts of the country ( particularly Herzegovina ) and a mass emigration of predominantly Muslim dissidents occurred . However , a state of relative stability was reached soon enough and Austro - Hungarian authorities were able to embark on a number of social and administrative reforms which intended to make Bosnia and Herzegovina into a " model colony " . With the aim of establishing the province as a stable political model that would help dissipate rising South Slav nationalism , Habsburg rule did much to codify laws , to introduce new political practices , and generally to provide for modernization . Ethnic relations . The Austro - Hungarian administration advocated the ideal of a pluralist and multi - confessional Bosnian nation . Joint Imperial Minister of Finance and Vienna - based administrator of Bosnia Benjamin Kallay promoted " Bošnjaštvo " , a policy that aimed to inspire in Bosnia ' s people ' a feeling that they belong to a great and powerful nation ' and viewed Bosnians as " " speaking the Bosnian language and divided into three religions with equal rights . " " . Between 1861 and 1869 , Topal Osman Pasha , an Ottoman grand vizier had striven to do the same . The policy attempted to isolate Bosnia and Herzegovina from its irredentist neighbours ( Orthodox Serbia , Catholic Croatia , and the Muslims of the Ottoman Empire ) and to negate the concepts of Croatian and Serbian nationhood which were already current among Bosnia and Herzegovina ' s Catholic and Orthodox communities , respectively , in the mid 19th century . Croats and Serbs who opposed the policy , mostly ignored Bosnian nationhood and instead sought to claim Bosnian Muslims as their own , a move that was rejected by most of them . Following the death of Kallay , the policy was abandoned and by the latter half of the 1910s nationalism was an integral factor of Bosnian politics , with national political parties corresponding to the three groups dominating elections . The idea of a unified South Slavic state ( typically expected to be spearheaded by independent Kingdom of Serbia ) became a popular political ideology in the region at this time , including Bosnia and Herzegovina . Certain Muslim circles in Bosnia and Herzegovina issued a newspaper called " " Bošnjak " " ( Bosniak ) . This newspaper caused fierce discussions in Bosnia and Herzegovina , Croatia and Serbia . The newspaper supported Kállay ' s policy , whose goal was to strengthen Austrian - Hungarian rule in occupied Bosnia and Herzegovina . Even though Kállay ' s policy wasn ' t widely accepted , even amongst Muslims , the newspaper " " Bošnjak " , " nevertheless , represented special national aspiration of certain Muslim circles in Bosnia and Herzegovina . Kállay ' s policy was finally defeated in mid - 1890 - is when Bosnian Serbs and Muslims requested their religious - educational autonomy in 1896 and 1899 . His policy had , nevertheless , a potential possibility to resist Croatian and Serbian national aspirations , but still , after 1899 and 1900 his policy of Bosnianhood didn ' t represented any significance in Bosnia and Herzegovina ' s policy . Austrian - Hungarian authorities , soon after they occupied Bosnia and Herzegovina , took religious communities under their sovereignty . By number of its regulations , Austrian - Hungarian authorities completely took Muslim community under their jurisdiction , while Muslim religious officials become Austrian - Hungarian state officials . Such move of Austria - Hungarian authorities was made to isolate Bosnian Muslims from Istanbul and the Ottoman Empire . Muslims were largely unhappy with their new status , which led to creation of a Muslim opposition . This Muslim opposition demanded , at first , Muslim religious autonomy , but later , as it grew stronger , they demanded even autonomy under the Ottoman Empire . In order to accomplish their goals , the Muslim opposition tried to align it self with the Serbs , who at the same time demanded their religious - educational autonomy . But , unsolved agrarian relations between the Muslim leadership and the Serbs was an obstacle for Muslims to create a far - reaching alliance . Their alliance was based on tactical and political significance . Later , Muslim leadership emphasized sultan ' s sovereignty over Bosnia and Herzegovina demanding their ability to regulate their religious relations with consent of Shaykh al - Islām , superior authority in the issues of Islam . With Kállay ' s death in 1903 , the situation in Bosnia and Herzegovina was liberalized . The national movements in Bosnia and Herzegovina were transformed in politician parties . In 1906 , the Muslims founded the Muslim National Organization ( MNO ) in 1906 , the Serbs formed the Serbian National Organization ( SNO ) in 1907 , and the Croats formed the Croat National Union ( HNZ ) in 1908 . Another significant Croatian party , though less represented then the HNZ , was the Croatian Catholic Association ( HKU ) . The MNO considered Bosnia and Herzegovina to be part of the Ottoman Empire until the collapse of the Austria - Hungary in 1918 . They considered Austria - Hungary a European assign to control Bosnia and Herzegovina . Their main goal was to achieve Muslim religious autonomy and to maintain the agrarian relations that were in force at the time . In 1909 they achieved their religious autonomy . Austrian - Hungarian authorities signed a treaty with the Ecumenical Patriarchate of Constantinople by which they the Austrian - Hungarian Emperor gained control over the Serbian Orthodox Church in Bosnia and Herzegovina in exchange for annual reimbursement . Serbs largely disapproved the Austrian - Hungarian control over their religious institutions so they organised a struggle in order to gain their religious autonomy . The struggle was ended in their favour in 1905 . After gaining the religious autonomy , the Serbs gathered around four political groups , out of which three become notable . The notable groups become known under name of their official gazets , the " Srpska riječ " ( Serbian Word ) , the Petar Kočić ' s " Narod i Otadžbina " ( the People and Fatherland ) and the Lazar Dimitrijević ' s " Dan " ( the Day ) . Later they demanded unity under one party , which was approved to them , so they founded the Serbian People ' s Organisation . As a relative majority , the Serbs were a dominant political factor , and as such they demanded Bosnia and Herzegovina ' s autonomy and considered it a part of the Ottoman Empire and Austria - Hungary an assign to control Bosnia and Herzegovina . Serbian politics in Bosnia and Herzegovina was dominated by the three factions gathered around the three newspapers . The main problem of Serbian civic politics was the agrarian reaction . It found it self under the pressure form Serbian peasantry that demanded a liberation from the feudal relations , while on the other hand it had a wish to maintain cooperation with the Muslim People ' s Organisation in achieving the national aspirations . The group gathered around the Kočić ' s " Narod and Otadžbina " newspaper completely stood for Serbian peasantry against the Muslims in order to change the agrarian position of the peasantry . Kočić ' s group also banned any cooperation with the Austrian - Hungarian authorities . The group gathered around Dimitrijević also advocated a radical change of the agrarian relations and criticised the Serbian civic leadership for neglecting the peasantry , but they advocated cooperation with the Austro - Hungarian authorities in changing the agrarian relations . The main goal of Serbian politics in Bosnia and Herzegovina was destruction of the Autrian - Hungarian authority in Bosnia and Herzegovina and to secede Bosnia and Herzegovina to the Kingdom of Serbia . Their goals , however , weren ' t an obstacle for economic cooperation with the Austrian - Hungarian authorities . In order to suppress national aspirations , the Austrian - Hungarian authorities tried to limit the activity of the Franciscans in Bosnia and Herzegovina . The Emperor and the Holy See were conducting a discussion about the reestablishment of the Catholic Church in Bosnia and Herzegovina . The Emperor had in goal to implement his secular power within the Church and at the end , in 1881 , the Holy See fold under his demands under a condition that he doesn ' t mention his secular power in a bulla , which he , however , did . After establishing secular power over the Catholic Church in Bosnia and Herzegovina , the Emperor established the cathedral in Sarajevo and named Archbishop dr . Josip Štadler as its head . Just before the occupation of Bosnia and Herzegovina , the Croatian Sabor asked from the Emperor to adjust situation in Bosnia and Herzegovia so it can be unified with the Kingdom of Croatia - Slavonia and the Kingdom of Dalmatia . The Emperor refused to accept their demand and he dismissed the Sabor . This was done as the Austrian - Hungarian authorities had in plan to isolate Bosnia and Herzegovina from its neighbouring Slavic countries , Croatia and Serbia , and to halt national aspirations of the peoples in Bosnia and Herzegovina . The authorities didn ' t only suppressed the Croatian and Serbian name , but also any flags , coats of arms and folk songs . Any activity that would emphasise a common interest of Croats in Bosnia and Herzegovina and those in the Triune Kingdom was suppressed at its beginning . As they were unable to form a political party , especially under the Kállay ' s administration , Croats formed various musical societies , reading rooms , schools , economic institutions and newspapers . The authorities forbade to those societies to use word " Croatian " , even though they allowed use of the name word " Serbian " for Serbian societies . Only later they allowed using the word " Croatian " . Such policy by the authorities was pushed by Hungarian circles , especially under Kállay and his successor Stephan Burián von Rajecz . The goal of their policy was weakening of the Croatian position in Bosnia and Herzegovina by strengthening of Serbian position , in order to make unification of Bosnia and Herzegovina with Croatia less likely . Even though the authorities tried to isolate Bosnia and Herzegovina from the influence of neighbouring Slavic countries , Croatian people in Bosnia were nevertheless influenced by all three major political movements from Croatia , first the Illyrian movement , later Yugoslavism and Croatian nationalism . In Croatian politics there were two factions and their formal political organising run slowly . The fundamental reason of this Croatian political dividation was disagreement between the Franciscan Bosnian Province and the Archbishop ' s Chancery on dividation of parishes within the archdiocese . The first intitiative for creation of a Croatian political party came from the Croatian intelligentsia which gained support from the Franciscans . In 1908 , after some preparations , it founded the Croatian People ' s Union with Ivo Pilar as its main ideologist . In its program , the HNZ advocated annexation of Bosnia and Herzegovina by Austria - Hungary and its unification the rest of Croatian lands . In relations with the Serbs , the HNZ stood for a strict reciprocity , rejecting idea of Bosnia and Herzegovina ' s unification with any other country or its autonomy . The HNZ didn ' t demanded any changes in social relations or changes in the agrarian relations . They tried to maintain good relations with the Muslim population , which was only way to gain political strength . Because of this , they were harshly criticized by the Štadler ' s Croatian Catholic Association that advocated the ban of the serf system . Pilar considered that the HNZ ' s goals can only be achieved if Croats get support from the Muslim population , and at the same time , he criticied Štadler for his Catholic propaganda . Štadler , who was Pilar ' s main opponent , considered that catholic Croats shouldn ' t be educated in any way other than as Catholics , thus advocating segregation between Catholics and Muslims . The HKU like the HNZ advocated unification of Bosnia and Herzegovina with other Croatian lands . It also promoted Christian morals , and unlike the HNZ , the HKU advocated abolishment of the serf system as they had no relations with the Muslims . Annexation . Even though Bosnia and Herzegovina was still part of the Ottoman Empire , at least formally , the Austrian - Hungarian authorities had factual control over the country . Austria - Hungary waited for a chance to incorporate Bosnia and Herzegovina formally as well . Situation of Bosnia and Herzegovina was depending from the international situation , which Austrian - Hungarian authorities were aware of . They used the Young Turk Revolution in the Ottoman Empire to finally annex Bosnia and Herzegovina . The revolution brought constituency in the Ottoman Empire in July 1908 . The Austrian - Hungarian authorities were afraid that the revolution could spread to Bosnia and Herzegovina , as it had support from the Bosnian Muslims and the Serbs , who supported the autonomy of Bosnia and Herzegovina within the Ottoman Empire . On 7 September 1908 , the SNO and the MNO demanded that Bosnia and Herzegovina gains constitution as part of the Ottoman Empire . On 5 October the Emperor Franz Joseph announced the annexation of Bosnia and Herzegovina and ordered to the Minister of Finance to make a news constitution for Bosnia and Herzegovina . The annexation was announced in Sarajevo two days later , on 7 October . This annexation led to the international crisis , which was solved on 26 February 1909 when the Ottoman Empire recognised the annexation when it received material compensation and when the Austrian - Hungarian garrisons left the Sanjak of Novi Pazar . By this , Bosnia and Herzegovina was formally under the Austrian - Hungarian sovereignty . On 21 March 1909 , the German Empire sent an ultimatum to the Russian Empire to recognise the annexation , which Russian did immediately . Soon , the Kingdom of Serbia recognised the annexation on 31 March and the Kingdom of Montenegro did so on 5 April . The annexation caused unrest amongst the Muslim and Serbian population . The Muslims couldn ' t believe that Sultan ' s sovereignty can be removed with one proclamation and that they are now ruled by a Christian emperor . The MNO and the SNO refused to give any official statement about the annexation . In Budapest they held a meeting on 11 October 1908 they issued the " Message to the People of Bosnia and Herzegovina " , where they stated that the people couldn ' t reconcile with the Austrian - Hungarian occupation in 30 years and asked for the people to remain calm and wait for the decision of the superpowers . Both parties announced that they will continue the struggle for the autonomy of Bosnia and Herzegovina . However , since all European countries had already recognised the annexation , the SNO and the MNO , that wanted to continue their activity as legal parties , also recognised the annexation ; the SNO did so in May 1909 and the MNO in February 1910 . Unlike the Serbs and the Muslims , the Croats widely accepted the Austrian - Hungarian annexation with enthusiasm . In an audience at the Emperor Franz Joseph , the representatives of the HNZ , Pilar , Nikola Mandić and Antonije Sunarić expressed the gratitude of the Croatian people to the Emperor for the annexation at the end of October 1908 . However , Croatian enthusiasm didn ' t last long , as the Austrian - Hungarian authorities didn ' t join Bosnia and Herzegovina with the rest of Croatia . Politics . In Bosnia and Herzegovina , every major ethnic group was represented by its political party . The Muslims were represented by the Muslim People ' s Organisation , the Serbs were represented by the Serbian People ' s Organisation , while the Croats were represented by the two political parties , the Croatian People ' s Union and the Croatian Catholic Association . The Diet of Bosnia was established in 1910 . Administration . Bosnia and Herzegovina was governed jointly by Cisleithania ( Austria ) and the Lands of the Crown of Saint Stephen ( Hungary ) through the joint Ministry of Finance . In the Ministry of Finance , there was the Bosnian Office which controlled Bosnia and Herzegovina over the Government based in Sarajevo . The Government of Bosnia and Herzegovina was headed by a governor , who was also a commander of military forces based in Bosnia and Herzegovina . The government was also composed of the governor ' s deputy and chiefs of departments . At first , the government had only three departments , administrative , financial and legislative . Later , other departments , including construction , economic , education , religion , and technical , were founded as well . In the 1910 Constitution , the Emperor proclaimed Bosnia and Herzegovina to be unique administrative territory under responsible leadership of the joint finance minister . With the implementation of the constitution , the position of Bosnia and Herzegovina didn ' t changed . It remained a " corpus separatum " administrated by Austria and Hungary . The constitution implemented three new constitutions , the Diet of Bosnia , the National Council and the municipal councils . The Diet of Bosnia had very limited legislative powers . The main legislative power was in hands of the emperor , parliaments in Vienna and Budapest and the joint minister of finance . The Diet of Bosnia only proposed decisions which needed to be approved by the both parliaments in Vienna and Budapest . The Diet also had no impact on the administrative - political institutions , the National Council and the municipal councils and also it didn ' t have right to participate in every decision making ; the Diet could participate only in decisions that mattered Bosnia and Herzegovina exclusively , while decisions on armed forces , commercial and traffic connections , customs and similar matters , were made by the parliaments in Vienna and Budapest . The Austrian - Hungarian authorities left the Ottoman division of Bosnia and Herzegovina untouched , they only changed the names of divisional units . Thus the Bosnia Vilayet was renamed to " Reichsland " , " sanjak s " were renamed to " Kreise " , " kaza s " were renamed to " Bezirke " , while nahiyah s were renamed to " Exposituren " . There were six " Kreise " and 54 " Bezirke " . Head of the " Reichsland " was a " Landsschef " , heads of the " Kreises " were " Kreiseleiters " and heads of the " Bezirke " were " Bezirkesleiters " . Religion . The emperor of Austria - Hungary had the ability to appoint and dismiss religious leaders and to control religious establishments financially through agreements created with the papacy , the Ecumenical Patriarchate , and the Sheikh ul - Islam . The occupation of Bosnia and Herzegovina led to great reforms of the Catholic Church in that country , after centuries in the Ottoman Empire . In 1881 , Vrhbosna was elevated to an archdiocese , and the dioceses of Banja Luka and Mostar - Duvno were formed . Work began on the Cathedral of Jesus ' Heart in Sarajevo in 1884 and was completed by 1889 .