6 APRIL 1867, Page 1

The Luxemburg affair has entered into a new phase. The

Prussians who garrison the fortress have announced in a some- what informal manner that they do not intend to leave it, and the Grand Duke, who is also King of Holland, has therefore with- drawn his proposal. The sale of the Duchy to France for 4,000,000/. was nearly completed, when on 1st April Count von Bennigsen, Hanoverian Liberal of eminence, rose to ask if Prussia really inteaded to surrender German territory. He told the Premier openly that while German Liberals wished for peace they preferred war to insult. Count von Bismarck replied very cautiously, admitted that Herr von Ilennigsen's speech was worthy of a representative of the people, declared that he knew nothing of any cession, affirmed that Prussia must be consulted before such cession could take place, and added significantly, that while anxious not to wound the susceptibilities of France, he trusted that "no power harboured the design to invade the indubitable rights of Germany." This aspiration has been rightly interpreted to include Luxemburg among indubitable rights, and the Emperor has apparently receded. Of course, conventionally, the King el: Holland gives way, but really it is Napoleon who has sustained another exasperating diplomatic defeat.