The Sun.
London, England, 1863-12-03 00:00:00

LATEST INTELLIGENCE.

(REUTER'S TELEGRAMS.)

M. FOULD'S FINANCIAL STATEMENT.
PARIS, DEC. 3.
M. Fould's financial statement has been published
to-day. It states that the total amount of the
deficit is 972,000,000 francs. It is neeeessary to
consolidate part of the floating debt. The produce
of a loan will be employed to redeem the Treasury
Bonds, and will put in circulation an amount
corresponding to that which it will demand.
M. Fould proposes to the Emperor to fix the
amount of the loan at 300 million francs. The
expenses in Mexico will amount to 210 million
francs at the end of 1863. M. Fould says :

" It was hoped that a Mexican loan would lead
to the repayment of our advances. But notwith-
standing the confidence we have of seeing a regular
Government re•established in Mexico at no distant
future, we must not allow the security of our
finances to depend upon the liquidation of the debt
of Mexico to France.

"We hope for a day when, by the reduction of
theexpenses
an improvement in the receipts,
it
w iibeand
possible to resume the operation of the
Sinking Fund.

" If in the future the equilibrium of the Budget
be maintained, if the generous efforts of the
Emperor assure peace and the State prosper, our
finances will permit 11l to reduce the taxes and
realise the wishes of his Majesty."
The Nation lately published the project of a Con-
stitution, which, it is stated, had been submitted by
Prince Couza to Great Powers.

This intelligence has been officially contradicted.

THE PRINCIPALITIES.
BUCHAREST, DEc. 2.
The members elected to form the Committee on
the Address all belong to the Opposition.

SPAIN AND MOROCCO.

MADRID, Nov. 29.

The Gazette of to-day publishes a short account

of the events which led to the complaints of the
Spanish Government to the &Akan of Morocco

against the Riffs and the mission of Senor
Merry to Melilla. The Spanish Government
insisted that, in order to effect the fulfil-
ment of the boundary treaty concluded between
the two countries, the Sultan should send Muley
Abbas to Melitta—the influence of this Prince
upon the inhabitants, his position and thorough
knowledge of the engagements entered into with
Spain by his sovereign, pointing him out as the
fittest person to reconcile alverse interests.
This proposal of Spain was favourably received,
and a sufficient number of Moorish troops was col-
lected to accompany Muley Abbas, and ensure the
fulfilment of his mission. The Sultan further
delivered to Muley Abbas the amount ne-
cessary to indemnify the indigenous pro-
prietors of the territory ceded to Spain.
These preliminaries affected, Muley Abbas pro-
ceeded to the neighbourhood of Melilla—Senor
Merry, resident Spanish Minister in Morocco,
having also gone to Melilla, in order to discuss and
arrange with the Caliph all the difficulties that
might arise.
Muley Abbas and Signor Merry finally agreed
upon, and signed the following treaty on the 14th
November, 1863.
1. Stakes will be placed at the points specified
by the Spanish and Moorish engineers in the In-
ternational Act, concluded in 1862, in fulfilment of
Art. 2 of the Convention of 1859, confirmed by Art.
5 of the treaty of peace. of Tetuan.
Those who may remove or destroy these stakes
will be severely punished, and the stake so de-
stroyed will be replaced by the Baja of the Riff, in
presence of the Governor of Melilla, or his deputy.
2. The Sultan of Morose() having resolved to in-
demnify those of his subjects who hold propert3
within the territory ceded to Spain, his Majesty, in
order to effect the delivery of the said territory to
the Queen of Spain, to whom they belong in full
dominion and sovereignty, has stipulated that all
those of his subjects who may be in this case shall
quit the Spanishterritory andabandon theirproperty
which will become the property of the Spanish na-
tion. The said Moorish subjects will be imme-
diately expelled from the Spanish territory. The
Spanish authorities of Melilla will not allow them
under any pretext to re-occupy these properties,
since this might give rise to disturbances on the
frontier. On this point matters will remain at
Melilla in the same state as at Ceuta.
3. In order to avoid the questions which would
be raised by the entry of Moors from the camp to
visit the mosque within the boundary, in the place
named Santiago, the said mosque will be destroyed,
and the trees surrounding it levelled with the
ground. The destruction of the mosque and clear-
ance of the adjacent ground will be effected by the
Moorish troops and the members of the tribes.

4. Moorish subjects will not be allowed on any
account to enter armed into the Spanish territory
bordering Melilla. The Spanish Minister declares
that he who may contravene the regulation after
the present treaty comes into execution will lose
his arms, -which will remain in possession of the
Spanish authorities.
From the intelligence forwarded by Senor
Merry, it results that on the day of the signa-
ture of the treaty, Art. 2 was fulfilled by the
expulsion of the Riffs by the Moorish troops from
the land comprised within the present limits of the
place, a measure which was confirmed the same
day, the troops preventing the holding of the usual
fair on this land.

In the same manner on the 16th November the
placing of the stakes wore effected on the frontier

line in conformity with Art. 1 in presence of the
persons deputed by the two countries.
Finally, on Nov, 19, was executed Art. 3, the
troops destroyiug the mosque mentioned in this
article, and levelling the trees as the Riffs had done
with their houses before abandoning their homes.
In view of this result, which corresponded with the
expectations of the Queen's government from the
loyal procedure of the Sultan's Government and the
sending of the Caliph Muley Abbas to Melilla, the
Spanish Minister using the authority in him, and
yielding to the reiterated request of the Prince, did
not hesitate to pardon in the name of the Queen of
Spain, and to deliver to the Moorish troops the Riffs
confined in Melilla in consequence of the late events
as hostages or supposed criminals.

MEXICO.

PARIS, Dec. 2.

Advices received here from Mexico state that
the movement for the concentration of the troops,
in view of approaching operations in the interior,
commenced on the 15th Oct., and lasted until the
24th. The Commander-in-Chief, however, had no
intention of assuming the offansive until the be-
ginning of November.
The command of Mexico city was to be entrusted
to Gen. Neigre, with 3,500 men of all arms. The
approaches and defences of the capital have been
fortified, so as to render it easy to be held by a
small number of troops.
Works of defence between Mexico and Vera
Cruz had been executed at CAmbrone to protect