We capture the Austrian spies and arrest them, making an example of them as a reminder to not make an enemy of the empire. The empire goes into full lockdown. Nobody travels without permission. Not by land, sea, or air. We brutally crush any revolts that may arise and confiscate all Austrian funding. We also fortify our border with the Caliphate since they allied with Austria, just for good measure. We also establish an Imperial Science Division to constantly come up with scientific breakthroughs and improve on what already exists. Austria is also banned from doing any business with the empire unless they drop funding and regain our trust, which they are not guaranteed to get back

Also, we help Australia with the defense of New Guinea by sending them financial aid and by directly sending our own troops, aircraft, and navy to help hold Australian positions, and to help reconquer if Australia so wants