THE PRELIMINARIES OF PEACE BETWEEN AUSTRIA AND PRUSSIA.

West Coast Times, Issue 326, 9 October 1866, Page 1 (Supplement)

THE PRELIMINARIES OF PEACE BETWEEN AUSTRIA AND PRUSSIA.

PRUSSIA. Behlin, Aug 1. According io the particulars that have at present transpired the preliminaries of peace 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 Schleswigtlolstein to Prussia.

Saxony,- the only one of the German S-sites included in the treaty, will also- preserve her territorial integrity, hutvwiththe reserve of further stipulations relative to Kfer position in the North German Confederation and towards * Prussia.

Austria'pays Prussia a war indemnity of 40,000,000 thalers, from which 15,000,000 are to be deducted as the share due to Austria of the former Scbleswig-Holstein war expenses, ~ancl 5,000,000 for further costs arising out of her occupation of the Duchies. Until the payment of the remaining 20,000,000 thalers may be considered as secured, Bohemia and Moravia will remain in Prus&ian occupation.

Au alliance between the South German States and the settlement of their relations to the North German Confederation are left for a free understanding between those States. Austria recognises. the changes of terri- v torial 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 Prnssia is entitled by the laws of war to retain Hanover, Electoral Hesse, that portion of the Grand Duchy of Hesae to the north of the Maine, Nassau, and Frankfort without negotiation with their former

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, and entail serious 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 on this point, entire libeity of action being left to Prussia and recognised by Austria.