 During this period, ideas were being discussed for the reform of the German Confederation.Bernstorff revived a project from 1849 to form a narrow Prusso-German "Bundestaat" in order to ward off such initiatives by Austria, and argued for a "Lesser German" union under Prussian leadership and excluding Austria; these plans were not pursued for the time being, however, as they were undermined by mistrust of political elements.Bernstorff also negotiated military conventions with various northern German states, concluded a free-trade agreement with France as part of changes to the "Zollverein" policy to isolate protectionist Austria, and swiftly recognized the new Kingdom of Italy as a state in hopes that it would help collaborate against Austria.