The Sun.
London, England, 1866-12-18 00:00:00

LATEST INTELLIGENCE.

(REUTER'S TELEGRAMS.)

FRANCE AND ITALY.

PARIS, Dee. 18,

The .lioniteur of this morning publishes the con-
vention concluded on the 7th inst. between France
and Italy for the settlement of the Pontifical debt.
The articles of the convention correspond with the
information already published on this subject.

ROME, Dec. 17.

The Pope paid a visit this morning to King Louis
of Bavaria. His Holiness afterwards went to the
Capucin Church.

THE PROPOSED ARRANGEMENT BE-
TWEEN ITALY AND THE POPE.

The following are believed in Italy to be the bases
of the arrangement which the Italian Government
has proposed to the Pope :

1. The Italian Government will bring in a bill
declaring Florence to be the definitive capital of the
kingdom of Italy.

2. The cardinals will be declared princes of the
kingdom, and will get from the Italian Treasury
double the salary they now receive.

3. The inhabitantsof the Pontifical territory, with
the exception of Rome, to declare by a plebiscite
whether they will remain subjects of the Pope, or
unite themselves with the rest of Italy.
4. Rome to be declared a religious city sui generis,
in which the Pope is to have absolute control. The
municipal council, however, will be elected by the
citizens and will have the disposal of several adminis-
trative offices. Moreover, the lay element will be
substituted for the religious element, especially if
in the course of the negotiations a small territory
should be added to Rome.

5. The pontifical troops to be discharged, and
the foreign soldiers to be sent away. The inhabit-
ants to be allowed to enlist in the Italian army.
6. The treaty to be binding only during the pon-
tificate of Pius IX.

7. Pius IX. to acknowledge Victor Emmanuel as
King of Italy, and, instead of going into exile, the
Pope to come to Florence to crown the King as
sovereign of Italy.

8. Italy will contribute its quota, as a Catholic
power, to the civil list which other Catholic states
will bestow on the Pope.

AMERICA.

QUEENSTOWN, Monday.
The Inman steamship City of Baltimore, from
New York on the Bth inst., arrived here at 9.30
p.m. to-day, with 374 passengers and $13,240 in
specie. She landed 78 passengers, and proceeded
for Liverpool at 10.15 p.m.

NEW YORK, Dec. 8.
Secretary Seward's instructions to Mr. Camp-
bell direct him to proceed to the seat of the
Government of Juarez and to furnish the State
Department at Washington with information rela-
tive to the condition of affairs in Mexico, but to
enter into no stipulations with Maximilian or the
French which would be likely to embarrass the ad-
ministration of J uarez. Mr. Seward declares that
the United States desire neither to conquer nor to
purchase Mexican territory, but only to see the
country relieved from foreign military intervention.
Gen. Sedgwick has been ordered to Washington to
undergo court-martial for violation of orders in occu-
pying Matamoras.

Washington despatches published in the New
York papers assert that Mr. Bigelow has telegraphed
that he is convinced of the Emperor Napoleon's
good faith, and that the latter will withdraw from
Mexico and co-operate with the United States to
restore the Republican form of Government. He
adds that the Emperor Napoleon favours the
uncontrolled election of a President by the Mexi-
cans.

A bill has been introduced into the House of Re-
presentatives to provide territorial governments for
the Southern States, and extend the franchise to
all persons who remained loyal during the rebel-
lion.

The judiciary committee of the Senate has re-
ported favourably on a bill for repealing the pardon.
ing powers of the President.

The Alabama Legislature have rejected the con-
stitutional amendment.

The Fenians in Canada sentenced to be bung
have been respited until the 13th of March.

(BY ATLANTIC TELEGRAPH.)

NEW YORK, Dec. 17, Evening.

Gold, 138. Sterling exchange on London, 109}
Five-twenty United States Bonds, 107 f ; Illinois
118 ; Erie, 73. Cotton, middling Upland, 34k.