27 JULY 1861, Page 1

The Emperor of Austria has made up his mind. In

a formal reply to the address of the Hungarian Diet, he demands for the Reischsrath control over the whole empire, a diplomatic, financial, and military unity. The Diet has not replied, but it is known that Hungary will not accept these terms, but will wait passively till the turn of the tide enables her once more to dictate her own conditions. For the moment, with her troops in Bohemia and Venice, Italy only half armed, and her people unprepared, she can only resist by declining to obey. The taxes are still collected by military force.