THE PRELIMINARIES OF PEACE BETWEEN AUSTRIA & PRUSSIA.

Grey River Argus, Issue 116, 9 October 1866, Page 3

THE PRELIMINARIES OF PEACE BETWEEN AUSTRIA & PRUSSIA.

Berlin, Aug. 1,. According to the particulars that have at present transpired, the' preliminaries of l^eace agreed to between Austria and Prussia are to the following effect : — "With the exception of Venetia, Austria suffers no loss of territory, but she cedes her co-possession of SchleswigHolstein to Prussia. Saxony, the only one of the German States, included in the Austro-Prussian j treaty, will also preservo her territorial integrity, but with the reserve of further stipulations rolative to her position in the North Gopman Confederation and towards Prussia. Austria pays Prussia a war indemnity of 40,000,000 thralcrs,from which 15,000,000 are to be deducted as the share due to Austria of the former Schleswig-Holstein war expenses, and 5,000,000 fop- further costs arising out of her occupation of the Duchies, Until the payment of the remaining 20,000,000 thralers may be considered as secure, Bohemia and Moravia will ro.iua.in in Prussian occupation, An alliance between the South German States, and the settlement of their relations to thq North German CQi}fedenj,tion are left for a free understanding bqtween those States. Austria recognises the changes of territorial possession to be effected in North Germany — as such are to be understood the arrangements which Prussia will make with regard to the countries now in her military occupation — that is to say, the King of Prussia is entitled by the laws of war to retain Hanqver, Electoral Hesse, that portion of the Grand Duchy of Hesse to the north of the Maine, Nassau, and Frankfort without negotiation with their former possessors. The restoration of any one of those sovereigns would be an act of grace on the part of the Prussian crown, but the restoration of individual portions of those States and their consequent division would probably be regarded with great disfavor by the. populations, a.nd entaij se,rioiis political consequences. It is, therefore, considered desirable, and it is probable that the above-mentioned States will be permanently united with Prussia, The peace preliminaries do not, however, contain special stipulations an this point, entire liberty of action being left to Prussia and recognised by Austria.