, 1866-08-24

lOSS Vi tCALltOb Oh DORA RNNOS
Rhine" 1t is deinitively settled that
Austria shall cease to be a member OF
the German Bund, but as a European
Power she will be at liberty to conclude
alliances with Northern Germany (Prus-
sia) and with Southern Germany, "shouId
Bavaria and the other States south of the
Main think fit TO form a league" One
of the conditions IN the preliminaries OF
peace is, that Austria shall pay to Prus-
STA 40, 900, 900 dollars as an indemnlhca-
ton for her extraordinary outlay during
The war, but from that sum Prussia has
to deduct 90, 1000, 900 dollars-that IS,
5000, 900 for the share of Austria in
SchIeswig-Holstein and 5000, 900 in pay
ment of the contributions levied in diff
ferent Austrian provinces occupied by
the enemy's troops. The Prussian ar
mics are preparing to retire behind a line
of demarcation drawn from Eyer, in the
west, to Oderberg, in the east, by way
of Pilsen, Tabor, Neuhaus, Znaim, Hrad-
isch, and NapagedI. From an influential
member of the diplomatic corps | learn
that the Emperor Francis Joseph would
hardly have escaped without loss of ter
ritory had not the Emperor of the French
interceded most energetically in his be-
half. OF the state of the relations be-
tween Prussia and the Southern German
States little more is known than that she
intends to make them pay a part, if not
the whole, of the expences she has in
Cured during the war.
About ten days ago the French Minis
ter for Foreign Affairs requested Prince
Metternich TO inform his Government
that France gave Venetia back to Aus
tria, Sin order that she herself might cede
it TO Italy" The Ambassador was un-
willing to make such a ~disagreeabIe
communication to Count MenSdorff, and
the Duke de Gramont was therefore in
structed 10 inform the Austrian Minister
for Foreign Affairs that Venetia had
ceased to belong TO France. The latest
news from the southern part Of the En-
pire is, that the Austrian troops and the
Tyrolese Volunteers have been obliged
to retreat 10 the town of Botzen, on the
Eizack, which is at no great distance
from the Bremen. I know not whether
Italian troops are in Roveredo and Trent,
but it is probable that they are, for On
the Gath inst. Lieutenant General Won
Kuhn informed the Imperial Stakeholder
in Tnspruck that he was masSing his
troops in the valley of Adige, sit being
his intention TO fall back on and defend
the German (northern) part of the Tyrol."
On the 23d inst. three companies Of
italian troops crossed the frontier into
the Tyrol in the neighborhood of Grigno,
and at the same time 100000 men ad-
vanced through the valley Of Cambre
with the intention Of turning the left
flank of the Austrians. It is very doubt
full whether the Imperial Government
will consent to cede the Southern Tyrol
to the King of Italy, as it has the %convic-
ton that it can, when at peace with
Prussia, hold its own against the
largest army he can possibly bring into
the field. The Vienna diplomatists fear
that the occupation of the Southern
Tyrol by Italian troops will be a great
impediment to the conclusion of peace
between the Emperor Francis Joseph and
King Victor Emmanuel. There are SO
many spies in Dalmatla that Lieutenant
General Won %Phillippovich, the'comman-
der of the Imperial forces in the province,
has resolved to bring all those persons