[Extract.]

Mr. Judd to Mr. Seward.

No. 70.]

Sir:Your despatch No. 75, and dated June 17, 1864, is received.

The direction in relation to Baron Von Gerolt shall be fully observed to-day, when I make my departure visit to the ministry. The chief Yon Bismarck is absent with the King at Carlsbad, and the under-secretary of state, Mr. Von Thile, receives.

[Page 218]

At the close of England’s abortive attempt to keep the peace, by constantly showing that she could not be driven into a contest, the war was renewed, and the allies, in overpowering numbers, crowded to the island of Alsen, defeated the Danes with great loss, and now possess the entire territory that is claimed as a part of the duchy of Schleswig.

The Danish province of Jutland is likewise substantially in the possession of the allies, and it is said that they intend to levy contributions to meet the losses sustained by the German states on the ocean.

The disposition of the duchies of Lauenburg, Holstein, and Schleswig, is now the agitated question. The people thereof, so far as they are German, demand the Duke of Augustenburg for their ruler. Austria and Prussia to-day, apparently in full accord, would consent to that if the duke would agree to the conditions they desire, viz: that Kiel shall become a federal harbor, and Rendsburg a federal fortress, occupied by the troops of the Bund, and that the troops of the duchies shall be incorporated into the army of Prussia; or, in other words, the duke can have the powers of a viceroy, if he will consent. The question of the succession is to be decided by the Diet, and Prussia and Austria, in accord, may delay that decision to suit their own designs and purposes; in the mean time remaining in the occupation of and administering the duchies. Without the concessions that I have mentioned, Herr Von Bismarck does not intend to set up a government in the duchies until absolutely compelled to do so. Where the influence is to come from that will induce or compel him to yield possession is not apparent now.

The rumors about an alliance entered into by the sovereigns of the three great northern powers at their late interview, continue, although semi-official journals here and in Vienna have contradicted them.

* * * * * *

I am, sir, your obedient servant,

N. B. JUDD.

Hon. William H. Seward, Secretary of State, Washington, D. C.