Mr. Wright to Mr. Seward.
Sir: * * * * * *
It is understood that the preliminaries proposed by Prussia (and approved by France) for the settlement of the existing difficulties are as follows :
1st. Austria to recognize the dissolution of the former confederation and the organization of a new one from which she will be excluded.
2d. The north of Germany to form a union under the military and diplomatic direction of Prussia.
3d. The optional formation of a union of south Germany as an independent, international body.
4th. National bonds between these two unions.
5th. The annexation of the Elbe Duchies to Prussia, with the exception of the Danish portion of Schleswig.
6th. Part payment by Austria of the Prussian war expenses.
[Page 38]7th. The maintenance of the integrity of Austria with the exception of Venetia.
These propositions have been submitted by France to Austria, who has agreed, up to this time, to only the first proposition, “excluding her from the German confederation.” No doubt the time of the existing armistice, which expires to day, will be extended, and the general impression is that through the influence of France the preliminaries for a peace will be agreed to between Prussia and Austria.
The Prussian Chambers will convene at Berlin on Monday next.
I have the honor to be, most respectfully, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.