According to Wikipedia:
Beginnings:
"Pope Innocent III succeeded to the papacy in 1198, and the preaching of a new crusade became the prime goal of his pontificate, expounded in his bull Post miserabile. His call was largely ignored by the European monarchs: the Germans were struggling against Papal power, and England and France were still engaged in warfare against each other. However, due to the preaching of Fulk of Neuilly, a crusading army was finally organised at a tournament held at Écry by Count Thibaut of Champagne in 1199. Thibaut was elected leader, but he died in 1201 and was replaced by an Italian count, Boniface of Montferrat.
Boniface and the other leaders sent envoys to Venice, Genoa, and other city-states to negotiate a contract for transport to Egypt, the object of their crusade; one of the envoys was the future historian Geoffrey of Villehardouin. Earlier crusades focused on Palestine had involved the slow movement of large and disorganised land hosts across a generally hostile Anatolia. An attack on Egypt would clearly be a maritime enterprise, requiring the creation of a fleet. Genoa was uninterested, but in March 1201 negotiations were opened with Venice, which agreed to transport 33,500 crusaders, a very ambitious number. This agreement required a full year of preparation on the part of the Venetians to build numerous ships and train the sailors who would man them, all the while curtailing the city's commercial activities. The crusading army was expected to consist of 4,500 knights (as well as 4,500 horses), 9,000 squires, and 20,000 foot-soldiers.
The majority of the crusading army that set out from Venice in October 1202 originated from areas within France. It included men from Blois, Champagne, Amiens, Saint-Pol, the Ile-de-France and Burgundy. Several other regions of Europe sent substantial contingents as well, such as Flanders and Montferrat. Other notable groups came from the Holy Roman Empire, including the men under Bishop Martin of the Pairis Abbey and Bishop Conrad of Halberstadt, together in alliance with the Venetian soldiers and sailors led by the doge Enrico Dandolo. The crusade was to be ready to sail on June 24, 1202 and make directly for the Ayyubid capital, Cairo. This agreement was ratified by Pope Innocent, with a solemn ban on attacks on Christian states.
Zara:
"As there was no binding agreement among the crusaders that all should sail from Venice, many chose to sail from other ports, particularly Flanders, Marseilles, and Genoa. By 1201 the bulk of the crusader army was collected at Venice, though with far fewer troops than expected: 12,000 instead of 33,500. About 4-5,000 knights and 8,000 foot soldiers showed up. The Venetians had performed their part of the agreement: there lay 50 war galleys and 450 transports—enough for three times the assembled army. The Venetians, under their aged and blind Doge Dandolo, would not let the crusaders leave without paying the full amount agreed to, originally 85,000 silver marks. The crusaders could only initially pay 35,000 silver marks. The Doge threatened to keep them interned unless full payment was made so then a further 14,000 marks was collected, and that only by reducing themselves to extreme poverty. This was disastrous to the Venetians, who had halted their commerce for a great length of time to prepare this expedition. In addition to this about 14,000 men or as many as 20-30,000 men (out of Venice's population of 60-100,000 people) were needed to man the entire fleet, placing further strain on the Venetian economy.Dandolo and the Venetians considered what to do with the crusade. It was too small to pay its fee, but disbanding it would lead to great shame upon Venice, as well as the loss of significant money and trading activities. Following the Massacre of the Latins of Constantinople in 1182, the ruling Angelos dynasty had expelled the Venetian merchant population with the support of the Greek population. These events gave the Venetians a hostile attitude towards Byzantium but it remains unclear if Constantinople was always intended to be the target and the issue remains under fierce debate today. Dandolo, who joined the crusade during a public ceremony in the church of San Marco di Venezia, proposed that the crusaders pay their debts by intimidating many of the local ports and towns down the Adriatic which would culminate in the attack of the port of Zara in Dalmatia. The city had been dominated economically by Venice throughout the 12th century, but had rebelled in 1181 and allied with King Emeric of Hungary and Croatia. Subsequent Venetian attacks were repulsed, and by 1202 the city was economically independent, under the protection of the King.
The Hungarian king was Catholic and had himself agreed to join the Fourth Crusade (though this was mostly for political reasons, and he had made no actual preparations to leave). Many of the crusaders were opposed to attacking Zara, and some, including a force led by the elder Simon de Montfort, refused to participate altogether and returned home. While the Papal legate to the Crusade, Cardinal Peter of Capua, endorsed the move as necessary to prevent the crusade's complete failure, the Pope was alarmed at this development and wrote a letter to the crusading leadership threatening excommunication.
In 1202, Pope Innocent III, despite wanting to secure papal authority over Byzantium, forbade the crusaders of Western Christendom from committing any atrocious acts against their Christian neighbours. However, this letter was concealed from the bulk of the army and the attack proceeded. The citizens of Zara made reference to the fact that they were fellow Catholics by hanging banners marked with crosses from their windows and the walls of the city, but nevertheless the city fell after a brief siege. There was extensive pillaging and the Venetians and other crusaders came to blows over the division of the spoils. Order was achieved and the leaders of the expedition agreed to winter in Zara, while considering their next move.
When Innocent III heard of the sack, he sent a letter to the crusaders excommunicating them, and ordered them to return to their holy vows and head for Jerusalem. Out of fear that this would dissolve the army, the leaders of the crusade decided not to inform their followers of this. In any event, Innocent shortly reconsidered his decision. Regarding the Crusaders as having been blackmailed by the Venetians, he rescinded the excommunications against all non-Venetians in the expedition."
Diversion to Constantinople:
"Boniface of Montferrat, meanwhile, had left the fleet before it sailed from Venice, to visit his cousin Philip of Swabia. The reasons for his visit are a matter of debate; he may have realized the Venetians' plans and left to avoid excommunication, or he may have wanted to meet with the Byzantine prince Alexios IV Angelos, Philip's brother-in-law and the son of the recently deposed Byzantine emperor Isaac II Angelos. Alexios IV had recently fled to Philip in 1201 but it is unknown whether or not Boniface knew he was at Philip's court.
There, Alexios IV offered to pay the entire debt owed to the Venetians, give 200,000 silver marks to the crusaders, 10,000 Byzantine professional troops for the Crusade, the maintenance of 500 knights in the Holy Land, the service of the Byzantine navy to transport the Crusader Army to Egypt and the placement of the Eastern Orthodox Church under the authority of the Pope if they would sail to Byzantium and topple the reigning emperor Alexios III Angelos, brother of Isaac II. It was a tempting offer for an enterprise that was short on funds. Doge Dandolo was a fierce supporter of the plan, however in his earlier capacity as an ambassador to Byzantium and someone who knew the finer details of how Byzantine politics worked, it is likely he knew the promises were false and there was no hope of any Byzantine emperor raising the money promised, let alone raising the troops and giving the church to the Holy See. Count Boniface agreed and Alexios IV returned with the Marquess to rejoin the fleet at Corfu after it had sailed from Zara. Most of the rest of the crusade's leaders, encouraged by bribes from Dandolo, eventually accepted the plan as well. However, there were dissenters; led by Reynold of Montmirail, those who refused to take part in the scheme to attack Christendom's greatest city sailed on to Syria. The remaining fleet of 60 war galleys, 100 horse transports, and 50 large transports (the entire fleet was manned by 10,000 Venetian oarsmen and marines) sailed in late April 1203. In addition, 300 siege engines were brought along on board the fleet. Hearing of their decision, the Pope hedged and issued an order against any more attacks on Christians unless they were actively hindering the Crusader cause, but failed to condemn the scheme outright.
When the Fourth Crusade arrived at Constantinople, the city had a population of 400,000 people, a garrison of 15,000 men (including 5,000 Varangians), and a fleet of 20 galleys.
For both political and financial reasons the permanent garrison of Constantinople had been limited to a relatively small force, made up of elite guard and other specialist units. At previous times in Byzantine history when the capital had come under direct threat, it had been possible to assemble reinforcements from frontier and provincial forces. On this occasion the suddenness of the danger posed by the Fourth Crusade put the defenders at a serious disadvantage. The main objective of the crusaders was to place Alexios IV on the Byzantine throne so that they could receive the rich payments he had promised them. Conon of Bethune delivered this ultimatum to the Lombard envoy sent by the Emperor Alexios III Angelos, who was the pretender's uncle and had seized the throne from the pretender's father Isaac II. The citizens of Constantinople were not concerned with the cause of the deposed emperor and his exiled son; hereditary right of succession had never been adopted by the empire and a palace coup between brothers wasn't considered illegitimate in the way it would have been in the West. First the crusaders attacked and were repulsed from the cities of Chalcedon and Chrysopolis, suburbs of the great city. They won a cavalry skirmish in which they were outnumbered, defeating 500 Byzantines with just 80 Frankish knights."
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