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No. 398.-TREATY OF PEACE between Prussia and Saxony. Signed at Berlin, 21st October, 1866.

2. Accession to Preliminary Treaty of 26th July, 1866.

3. Re-organization of Saxon Troops.

4. Garrison of Fortress of Königstein.

5. International Representation of Saxony.

6. War Indemnity to Prussia.

7. Guarantee for Payment of Indemnity.

8. Discount on Payments in Advance.

9. Prussian Military Government and Civil Commissariat for Saxony to

cease.

10. Special Agreement to regulate Property Affairs. Claim of Saxony upon Prussia.

11. Renewal of Zollverein Treaty of 16th May, 1865.

12. Renewal of Treaties and Conventions.

13. Formation of Railway from Leipsig with Berlin-Anhalt Line. Special Arrangements to be settled in separate Treaty.

14. Saxon portion of Görlitz and Dresden Railway in Prussia to pass to Prussia. Rights of Saxony to work Saxon part of Railway to Görlitz. 15. Compensation to Saxony for Railway Cession.

16. Postal Service.

17. Prussian Telegraph Rights in Saxony.

Saxon Telegraph Rights in

Prussia. Telegraph Commissioners to be appointed.

18. Abolition of Salt Monopoly in Saxony.

19. Non-molestation of Saxon Subjects for Conduct during the War. Consent of Prussia. Saxon Prisoners in Prussia to be set free.

20. Abolition of Rights of University of Leipsig. Indemnity to the Uni

versity.

21. Cessions to Prussia by Saxony.

22. Restoration by Prussia of Articles taken during the War.

23. Ratifications.

Special Stipulations in execution of Article IV.

Delivery of Fortress of Königstein to Prussia.

Protocol, explanatory of Article V.

Diplomatic Relations with Foreign Countries.

(Translation.)

His Majesty the King of Prussia and His Majesty the King of Saxony, animated by the desire of restoring the reciprocal

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friendly relations which have been interrupted by the War, and of regulating them for the future, have appointed as their Plenipotentiaries, with a view to a Treaty of Peace to be concluded for that purpose,

His Majesty the King of Prussia, his actual Privy Councillor, Chamberlain, and Envoy, &c., Charles Frederick von Savigny;

and

His Majesty the King of Saxony, his State Minister of Finance, &c., Richard Baron von Friesen; and his actual Privy Councillor, &c., Charles Adolphus Count von Hohenthal;

Who, after exchanging their Full Powers, which were found in good order, have agreed upon the following Treaty Stipulations:

Peace and Friendship.

ART. I. There shall henceforth be Peace and Friendship for ever between His Majesty the King of Prussia, and His Majesty the King of Saxony, their Heirs and Successors, their States and Subjects.

Accession to Preliminary Treaty of 26th July, 1866.

ART. II. His Majesty the King of Saxony, whilst he acknowledges and accepts the Stipulations of the Preliminary Treaty concluded between Prussia and Austria, at Nikolsburg on the 26th July, 1866 (No. 383), in so far as they affect the future of Germany, and of Saxony in particular, accedes for himself, his Heirs and Successors, and for the Kingdom of Saxony, to Articles I to VI of the Treaty of Alliance, concluded at Berlin on the 18th August last, between His Majesty the King of Prussia, of the one part, and His Royal Highness the Grand Duke of SaxeWeimar and other North German Governments of the other part, and declares them binding for himself, his Heirs and Successors, and for the Kingdom of Saxony; as His Majesty the King of Prussia extends the assurances therein contained likewise to the Kingdom of Saxony.

*

Reorganisation of Saxon Troops.

ART. III. As the Saxon Troops will consequently have to form an integral part of the North German Federal Army, and, as such, to come under the supreme command of the King of Prussia, their necessary reorganisation shall take place so soon as the general arrangements to be made for the North German Confede

*See note, page 1710.

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ration on the basis of the proposals of 10th June last, for the reform of the Confederation, shall have been settled.

Garrison of Fortress of Königstein.

ART. IV. In the meantime, the special Stipulations agreed to at the same time as the present Treaty, shall come into force,in regard to garrisoning the Fortress of Königstein, the return of the Saxon Troops to Saxony, the necessary granting of furloughs to the men, and the preliminary disposal of the Saxon Troops, which are to be replaced on the peace footing.

International Representation of Saxony.

ART. V.† The Royal Saxon Government also declares its willingness to regulate the International Representation of Saxony, according to the principles which will be authoritative for the North German Confederation in general.

War Indemnity to Prussia.

ART. VI. His Majesty the King of Saxony engages to pay to His Majesty the King of Prussia, to cover part of the expenses which Prussia has been put to by the War, and in fulfilment of the reservation in Article V of the Nikolsburg Preliminary Treaty of 26th July, 1866 (No. 383), the sum of 10,000,000 thalers, in 3 equal instalments.

The first instalment becomes due on the 31st December next, the second on the 28th February, and the third on the 30th April,

next.

Guarantee for Payment of Indemnity.

ART. VII. His Majesty the King of Saxony Guarantees the payment of the said sum by the deposit of 4 per cent. Exchequer Bills of the Royal Saxon State Debt, 3 per cent. Royal Saxon National Bonds of the year 1830, or Royal Saxon Provincial Revenue Bills bearing interest at 3 per cent., to the amount of the sum to be guaranteed. The Securities to be deposited will be reckoned at the current rate of the day, and the amount of the Guarantee will be increased by 10 per cent.

Discount on Payments in Advance.

ART. VIII. His Majesty the King of Saxony is at liberty to pay the above Indemnity, wholly or partially, before the stiSee page 1781.

See also page 1779.

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pulated time, with the deduction of a discount of 5 per cent. per

annum.

Prussian Military. Government and Civil Commissariat for Saxony

to cease.

ART. IX. On the exchange of the Ratifications of this Treaty, the Royal Prussian Military Government for Saxony, as well as the Royal Prussian Civil Commissariat at Dresden, will cease to act, without prejudice to the special Stipulations provided in Article IV; the daily payment of 10,000 thalers to the Commissariat will also cease at the same time.

Special Agreement to regulate Property Affairs.

ART. X. The arrangement of the Property affairs, founded by the late Germanic Confederation, is reserved for special Agree

ment.

Claim of Saxony upon Prussia.

His Majesty the King of Saxony, specially and expressly reserves a Claim to more than 200,000 thalers, which Saxony has expended and liquidated on occasion of the Federal execution in Holstein.

Renewal of Zollverein Treaty of 16th May, 1865.

ART. XI. Under reservation of the arrangements to be made in the Constitution of the North German Confederation, respecting Customs and Commercial affairs on the basis of the Federal Reform proposals of 10th June last, the Zollverein Treaty of 16th May, 1865, and the Agreements in connection therewith, which have been made inoperative by the breaking out of the War, shall again come temporarily into force between the High Contracting Parties from the date of the exchange of the Ratifications of the present Treaty, with the condition that each of the High Contracting Parties shall be at liberty to put an end to their operation, after 6 months' notice to that effect.

Renewal of Treaties and Conventions.

ART. XII. All other Treaties and Conventions concluded between the High Contracting Parties before the War are hereby again brought into force, in so far as they are not affected by the Stipulations mentioned in Article II, and by the accession to the North German Confederation.

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Formation of Railway from Leipsig with Berlin-Anhalt Line.

ART. XIII. The High Contracting Parties reciprocally engage to allow and to promote the formation of a Railway, starting immediately from Leipsig, and in direct communication therewith the Thuringian and the Berlin-Anhalt line, making joint use of part of one of those lines, if expedient, and proceeding by Pegau to Zeitz. His Majesty the King of Saxony will grant to the Company which shall receive the concession for the part of the said Railway situated in Prussian Territory, the concession for the length of it situated in Saxon Territory, on the same conditions as have been lately made in Saxony for concessions to Private Railway Companies in general.

Special Arrangements to be settled in Separate Treaty.

The special arrangements required for the execution of this Railway will be settled by a separate State Treaty, for the conclusion of which Plenipotentiaries on both sides will meet as soon as may be at a place to be hereafter agreed upon.

Saxon portion of Görlitz and Dresden Railway in Prussia to pass to

Prussia.

ART. XIV. The High Contracting Parties have agreed that the property of the Royal Saxon Government in the portion of the Görlitz and Dresden Railway which is situated in Prussian Territory, including the joint Right of Property in the Görlitz Station, shall pass over to the Royal Prussian Government with the Ratification of the present Treaty.

Rights of Saxony to work Saxon part of Railway to Görlitz.

On the other hand, the Royal Saxon Government will continue to work the part of the line from the Frontiers of the two Countries to Görlitz, and to make joint use of the Görlitz Station gratis provisionally, until the expiration of the 30 years' term fixed in Article XIV of the State Treaty of 24th July, 1843, with the reservation of any further Agreement to be then made. The Royal Saxon Government will deliver to the Royal Prussian Government annually the net proceeds of working the said portion of the line, as shown by the accounts. The Royal Prussian Government undertakes that, in the projected alteration of the Görlitz Railway Station, care shall be taken to provide the Royal Saxon Railway Board with all the necessary space and