10 MARCH 1866, Page 1

The most peaceful-looking symptom in this affair is the Kaiser's

tenacity in dealing with his Hungarian subjects. He cannot fight Prussia without them, but in his answer to the Address he declared that while he accepted the Pragmatic Sanction as his point of departure, he must and would adhere to the conditions laid down in his Speech from the Throne—remarks received by the deputation from the Diet who presented the Address with " chilling silence." They had expected concessions, more especially as to the right of the counties to self-government, and not receiving them, the hope of a durable compromise has sensibly declined.