20 MAY 1837, Page 1

Military operations have been recommenced in the rebell;ous provinces of

Spain, with some shuw of vigour, and, as regards the Queen's troops, with success. Don SEBASTIAN, the nominal Com- mander of the Carlist forces, quitted Hernani on or about the /.2:h of May, and made a rapid march, it is supposed into the interior, in a north-eastern direction; but with respect to his movements and their motive, there is much anxiety, with no certain information. ESPARTERO, on the 11th, reconnoitered the Cat-list lines; on the 12t1! he reviewed the British Legion, which mustered 3000 strong, (the sick and wounded having been all sent from San Sebastian to Bilboa) ; and on the 14th he drove the Carlist troops whom Don SEBASTIAN left behind him from IIernani, Astigarraga, Andoain, and Urieta. In the conflict, the loss of the Carlists its killed and wounded amounted to about 800 men. The correspondent of the Times thus describes the effect :lie , • ETERO'S success— Tins movement of Espartero eons t.:: him the royal road to To",.-1, and cuts off It un, Fuentarabia, and Oyarzun Irvin their communications n ith the Grand Carlist Army, leaving to time garrisons of those places no altern ttive but that of surrender or of throwing themselves into France, should they. as is probable, be unable to resist the superior force the Christinos would be able to bring against them ; in which case also, the communications of the Carbons with France would in that direction become impossible; for the next steps of the Christinos, after occupying those place's, would be to extend their line, and possess themselves of some of the frontier vallies, and possibly establish a military line between San Sebastian and l'ampeluna."

Tile advantage gained is therefore very important. Don CARLOS has issued a proclamation to the Spanish people, announcing his conversion, by the experience of three years' warfare and desolation, to mild and tolerant p:inciplcs of govern- ment.

"It is this conviction," he says, "that induced me to attend unremittingly to the formation of' u code which I am ready to give to you, and in which will be set down all your political rights. that is to say, fl eedom of religious creeds and political opinions, completed by the liberty of the press. Such in, I am persuaded, the only means of putting an end to the misfortunes that desolate the country and have afflicted this long time my paternal hearth."

Kind, compassionate, ant enlightened Prince! What a pity it is that you ever issued the Durango decree, and pledged yourself to restore the Inquisition I The provinces of Catalonia, Arragon, and Valencia, are in a very disorganized state. Its Barcelona some hostility to the Eng- lish has been manifested, in consequence of the assistance ren- dered by the crews of British ve,sels in putting down the riot which we mentioned last week. An address signed by six officers of the National Guard, and sent to Madrid for presentatioa to the Queen, complains in strong language, that " British bayonets should be steeped in the blood of Spaniards."

MENDIZABAL triumphed in the Cortes on the financill question, by a majority of 102 to 61; and the Opposition are represented as quite out of spirits, having expected to defeat and displace him. They are now calling for a publication of the items of the secret service money expenditure.

The Morning Post asserts that MENDIZABAL is about to con- clude a treaty for a loan of ten millions sterling, with the banker AGUADO, to be secured on the revenues of Cuba, Puerto Rico, and the Philippine Isles ; England guaranteeing to Spain the pus- sesion of those islands, to which arrangement Los 1 PALMER.. STON has acceded. This is the improbable story of the Post ; which the Government papers positively contradict.