30 MARCH 1867, Page 2

There is a serious affair astir on the Continent. The

Grand Duchy of Luxemburg, with an area of 1,000 square miles, 200,000 people, and a fortress-capital of great strength, was a State of the Germanic Confederation, and the King of Holland is its Grand Duke. It was allowed to remain neutral during the war, but has always been garrisoned by Prussians. It is now a waif, being in Prussian hands, but outside the Federation. Napoleon wants to bay it. The King-Duke, it is said, agrees to sell for 4,000,000/. and a guarantee, but Prussia has still to con- sent. There is a notion abroad that Count von Bismarck will yield, but owing to the position of the fortress Germans greatly dislike the idea. If he refuses, Napoleon will have an excellent cants belli, which he can plead when the Exhibition closes on 1st August. The Chassepot rifles are arriving very fast, and France is seething with irritation at the Treaties described in another column, which make the King of Prussia Commander-in- Chief of Germany south of the Maine.