2 JANUARY 1864, Page 7

It is reported that, in consequence of this resolution of

the smaller German Powers, the two great Goyerngtents have proposed that the Diet should occupy. Schleswig, provided.penmark refuses to withdraw the Constitution, a measure intended, probably, to gain time ; that England has proposed a conference of the Powers who signed the Treaty of 1852 plus au Envoy from the Diet ; that the British Government has, at last, stated that she must consider oc- cupation beyond the Eider a declaration of war, and that King Christian is moving about to place. his army in a position to resist attack. Of these three statements only the second, the consent to a Confereirce,-has been -officially confirmed ; but they are all ex- ceedingly probable, and -they point to a coniing and most terrible 'struggle. The Eniperd Napolebn, meanwhile, stands aside, qifite passive, and grimly delighted to see' England apt Gerniany, whose alliance alone restrains him, in :rtsly„.going to war to decide whether a hundred and fifty thouitand" peasants'shill be' Daned or Germans.