The Express.
London, England, 1866-01-23 00:00:00

LATEST INTELLIGENCE

(11ZOTIVEI TILZCIRLIIII.)
FRANCE.

REPORT ON THE STATE OF THE EMPIRE.
PARIS, TUMIDLY.

The usual official report on the state of the em-
pire, which has been communicated to the mem-
bers of the Corps Legislatif, alludes as follows to
Italy :—" The execution of the September Con-
vention is running its regular course. The Pope
displays & disposition to profit by the guarantees
offered, ana the removal of the seat of government
to Florence has been effected. Public opinion in
Italy is favourable to the convention, and
the sense of loyalty and honour of Italian
statesmen is a pledge for its fulfilment. The
French troops at Rome are gradually being
withdrawn. We have offered the Pope our assistance
to facilitate the recruitment and organisation of
his military forces. As regards the Pontifical
debt, we hope soon to arrive 4 an understanding
with the Italian cabinet which the Holy See may
accept without sacrificing its dignity."
As regards the disagreements between Prince
Couza and Turkey, the report states that France
advises the Danubian Principalities to respect
European treaties, which are based upon mutual
rights, and are a guarantee of friendly relations
between the different European powers.
The report recalls the importance France attaches
to maintaining the autonomy of the regency of
Tunis. The French cabinet trusts that the consi-
derations stated in the despatches of last year will
have been understood by the Bey and by Turkey,
and that no attempt will be made to destroy the
statu quo.

On the subject of Mexico the report says :
" The French government, on undertaking the
expedition to Mexico, placed before it an aim to
which it has rendered subordinate its conduct, and
on which its decisions are still depending. We
went to Mexico to obtain redress, not to proselytise
for the cause of monarchy. Our soldiers are not
in Mexico with the object of intervention. The
imperial government has constantly repelled that
doctrine as contrary to the fundamental principles
of our rights. Mexico is at present ruled by a
regular government. Anxious to fulfil the engage-
ments it has made in respect both to the persons
and properties of foreigners, when the necessary
arrangements are concluded with the Emperor
Maximilian, we shall be so far from repudiating
the results of our principles as regards interven-
tion that we shall, on the contrary, accept them as
the guiding rule for all powers, and it will then be
easy to foretell the time when we shall be able to
effect the return of the expeditionary army."
Documents relating to these affairs will shortly
be laid before the Chamber.

THE ITALIAN BUDGET.
FLORENCE, JAN. 22.

In to-day's Bitting of the Chamber of Deputies,
Signor Scialoja made his financial statement, which
confirmed the condition of the public trea-
sury as stated by his predecessor, Signor Sella.
After the payment of the half-yearly interest on
the public debt on the Ist inst., the balance in the
treasury was seventy millions. By means of the
treasury bills in circulation the balance of the loan
of 425 millions of lire and the proceeds of the sale
of the state railway, the public expenses are pro-
vided for for the ensuing year, including the pay-
ment of the half-yearly interest on the public debt
falling due on the Ist of January, 1867. The
minister spoke against loans and other extraordi-
nary expedients, saying that the revenue and ex-
penditure must be balanced by taxes and reduc-
tions. The ordinary expenditure for 1866 was 928
million lire. M. Scialoja denied all rumours of
an intended reduction of the interest on the public
debt. The minister Sella had announced reduc-
tions to the amount of 30 millions, but Signor
Scialoja said he would extend them to 65 millions,
30 millions of which would be effected in the war
and navy departments. He announced the sup-
pression of the office of sub-prefects and other
reforms. The deficit, amounting to 211 millions,
will be covered partly by increasing the existing
taxes and partly by creating new ones. He pro-
dposed a new classification of the direct taxes, and
also that octrois should be applied to flour and
He would also maintain the reforms relative to the
registration stamp as proposed by Signor Sella.
The deficit would thus be reduced to 80 mil-
lions. He limits the faculty of the com-
munes for imposing additional centimes on
the tax on landed property, and proposes
that they should have the faculty to increase some
other taxes, amongst which are those on doors and
windows. The minister also spoke of intended
reforms in the system of public accounts, and ulti-
mately demanded that the chamber should prolong
the provisional budget for two more months.