, 1866-08-17

5000, 900 are to be deducted as the
share due to Austria of the former Schles-
wig-Holstein war expenses, and 5000, 900
for further costs arising out of her occu-
patton of the Duchies. Until the pay
ment of the remaining 30, 900, 900 thalers
may be considered as secured Bohemia
and Moravia will remain in Prussian oc-
cupation.
Austria secedes entirely from Confede-
ration with the German States, and recog-
nizes the formation of - close Confsdsra-
ton Of the North German States under
Prussian leadership.
An alliance between the South German
States, and the settlement of their reIa-
tions to the North German Confederation,
are left for a free understanding between
those States.
Austria recognizes the changes of ter
%ritorial possession TO be effected in
North Germany. AS such are to be I'M
derstood the arrangements which Prus-
STA will make with regard 10 the coun-
tries now in her military occupation;
that is TO say, the King of Prussia is en-
titled by the laws Of war to retain Han
over, Electoral Hesse, that portion of the
Grand Duchy of Hesse to the north of
the Main, Nassau, and Frankfort. with
out negotiation with their former posses
sors.
The restoration of any one Of those
Sovereigns would he an act of grace on
the part of the PruSsian Crown. But
the restoration of individual portions of
those States and their consequent divi-
o;oo ,xo.Jl ounJn h1, ko vo~orIoH with
great disfavour by the populations, and
entail serious political consequences it
is, therefore, considered desirable, and it
is probable, that the aforementioned
States will be permanently united with
Prussia. The peace preliminaries do not,
however, contain special Slipulatlons or
this point, entire liberty of action being
left to Prussia and recognized by Austria.
In order to guard against the disad'
vantages arising from an incorrect inter
probation of the peace preliminarles con-
cluded with Austria on the Goth nit, the
Official Gazette of to-day publishes the
text of Art. 3, which is as follows =
"The Austrian Emperor recognizes the
dissolution of the Germanic-C onfedera-
ton, and accedes to the new organization
Of Germany without the participation of
the Austrian Empire. The Emperor pro-
misses to recognize the closer Confedera-
ton which the King of Prussia may es-
tablish north Of the line of the Main, and
declares himself willing that the States
south of that boundary should enter into
an association, the national representa-
ton of which with the North German
Confederation remains reserved for sub
sequent agreement between both parties.
This article CONTINUES the OHciat Ga
zette) is exactly identical with the propo-
sails of mediation advocated by France at
Vienna upon the 14th ult. Austria has,
therefore, consented to allow the re-or-
ganization of Germany to proceed with
out her participation. The Empire thus
belongs to the South German Union no
more than the natural national tie be-
between Northern and Southern Germa-
ny is torn asunder by the establishment
of the Main line of demarcation."
The Provincial Correspondence Of to-
day contains an article dwelling upon the
great services rendered by the Emperor
Napoleon in the negotiations for peace.
TA uovu.-