7 APRIL 1866, Page 1

The situation in Germany continues with little alteration. On March

24th, Count von Bismark addressed a note to the minor German States accusing Austria of menaces, declaring that a reform of the Confederation was essential, and asking each Court to state whether Prussia might rely on her in the event of war. Two days afterwards Count Carolyi, the Austrian representative at Vienna, in a formal note denied that his master had any intention of attacking Prussia, called on Count von Bismark for a similar denial, and announced the Austrian intention of adhering to the law which refers internal quarrels to the Diet. The Count on 3rd or 4th inst. evaded reply, but, it is said, informed the non-German powers that Prussia might be compelled to commence war to avoid the menacing preparations ordered from Vienna. All this while the preparations continue, and five at least of the Prussian corps d'arnde have been ordered to prepare for active service, the troops in Schleswig have been concentrated in Dapped and Alsen, large bodies of men are stationed in Prussian Saxony, and the Government is buying up horses. Both sides in fact are ready for war, but there is a momentary lull which may mean anything.