12 AUGUST 1865, Page 1

Reuter's account of the offers made by Austria to Prussia

for the disposal of the Duchies was substantially correct, but Herr von 13istnark refused them all. It is now said that the Kaiser has offered to give up his request for territory in Silesia, but has assured the Prussian that if he persists in his original demands the negotiations will be brought to an end. So bitter is the feel- ing between the two Powers, that Parisian journals gravely cal- culate the probabilities of war, and it seems certain that the Emperor has opened negotiations with Italy. Amidst conflicting rumours of all kinds, the one which appears most probable is that the Kaiser, making some arrangem,ent with Italy, will hand over his rights in the Duchies to the Diet, and then defend that body by force.