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alliance, was removed, and the anti-Prussian party came to the front. It was, therefore, no longer so easy to deal with the Prince, for he had a new and vigorous ally in Austria. Mensdorf, the new Minister, proposed in a series of lengthy despatches his solution of the question; it was that the rights of the two Powers should be transferred to Augustenburg, and that Schleswig-Holstein should be established as an independent Confederate State. The Austrian position was from this time clearly defined, and it was in favour of that policy to which Bismarck would never consent. It remained for him to propose an alternative. Prussia, he said, could only allow the new State to be created on condition that large rights were given to Prussia; what these were would require consideration; he must consult the different departments. This took time, and every month's delay was so much gain for Prussia; it was not till February, 1865, that Bismarck was able to present his demands, which were, that Kiel should be a Prussian port, Rendsburg a Prussian fortress; that the canal was to be made by Prussia and belong to Prussia, the management of the post and telegraph service to be Prussian and also the railways; the army was to be not only organised on the Prussian system but actually incorporated with the Prussian army, so that the soldiers would take the oath of allegiance not to their own Duke but to the King of Prussia. The Duchies were to join the Prussian Customs' Union and assimilate their system of finance with that of Prussia. The proposals were so drawn up that it would be impossible for