CONTINENTAL NEWS.

Southland Times, Issue 634, 20 February 1867, Page 3

CONTINENTAL NEWS.

The French and English Extradition Treaty will remain in force till September next.

It has been finally decided that the Empress Eugenic shall not visit Eome. M. Fould's finance report says that owing to the increase of 45,000,000 f. from indirect taxes the budget this year has balanced itself ; and he estimates that a surplus of the revenue next year of 90,000,0()0f. will remain ; and concludes by stating that the budget will also equalise itself that year, notwithstanding the expenses of the new armaments, and the return of the troops from Mexico. He considers that the ordinary budget of 1868 will show a surplus of 121,000,000 f.

France and Austria have concluded treaties of commerce and navigation, which come" into operation with the new year. The main features of the plan of reorganisation of the army are : — The force to consist of 1,200,000, the active army and the reserve each being over 400,000 ; a mobilised national guard of 330,000.- The The period of service of both the active army and the reserve to be six years, instead of as formerly seven and a half years. In case of war the reserve to join the active army ; the other half by special decree to form the national guard, to be reserved for home defence. The Austrian army is to be re-armed with breech-loaders firing fourteen shots per minute. The Hungarian Diet has unanimously passed an address, praying for the immediate re-establishment of the Constitution, and the issue of an amnesty to all political offenders.

The Prussian Government has laid a draft of the Constitution of the North German Confederation before a conference of deputies from the Allied Governments. The proposed Constitution contains a provision that in all matters-re-ferring to commerce or navigation, the Federal Council with the national representatives are to exercise legislative powers. The Prussian Crown is to be entrusted with the authority of the leadership of the Confederation, to declare war and conclude treaties of peace, and to appoint ambassadors in its name. The King of Prussia is to hold the position of Commander-in-Chief of all land and sea forces of North Germany, with power to order their being placed on a war footing. Kiel and Jahde to be Federal war ports. The naval flag of the Federation to be tri-colored — namely, black, white and red. The representatives in Parliament to be elected by a direct vote on universal suffrage. No payment to be made to members of Parliament. Public functionaries not to be eligible to seats.

The King of Italy opened the Chambers in person on the 19th. The speech was colorless, and a mere recapitulation of known facts, the most important part being the assurance that the Italian Government would respect the Pontifical territory. The French troops have all quitted Rome and returned to France. A treaty has been concluded between France and Italy, by which the latter takes upon herself the payment of the larger portion of the Pontifical debt. Negotiations are progressing between the Pope and the Italian Government, with a view to a definite understanding being arrived at as to the Pontifical future position. Rome is quiet. Latest advices from New York state that Maximilian has announced that he will not abdicate. He is reported to have formed a strong alliance with the Church party, thus securing important monetary advantages.