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FOREICN AND colonial affairs. ENGAGEMENT BETWEEN GARIBALDI AND THE AUSTIUANS. BERNE, May 25.-—It is reported from L\igano that General Garibaldi, with his 5,000 men, has barricaded himself in the town of Varese, hilt is without cannon. The Austrian? posted in the neighbourhood of Yarese are on their side provided with artillery, and a fight has commenced. BERNE, Wednesday, May 25,-2,000 Austrians are at Camerlata waiting for reinforcements and artillery. Garibaldi is expected r.t Como from Varese. Yesterday his advance posts were at Malrate. BERNE, Wednesday, May 25.-Revol"tionary move- ments have taken place itilombardy. Bontempts, the Swiss General, is going to-day to Lugano with the staff of his division, and all the troops under his command are to follow him. PARIS, Wednesday, May 25.—The Momteur of this morning publishes the following telegram:- ALKSS VSDUIA, May 24.-The wounded at the battle of Montebello have been brougdt to this town.- The Austrian prisoners litive been sent to Genoa, whence they will be forwarded to Marseilles. Before their departure the Emperor distributed money among them for their relief. ENGAGEMENTS AT MONTEBELLO AND VERCELLI. PARIS, Saturday.—The following despatch has been posted at the Bourse, containing the Emperor of the French's own version of the contest between the French and the Austrians on the banks of the Po:- THE EMPEBOR TO THE EMPRESS. ALESSANDRIA, Saturday.—"The Anstrians attacked yesterday (Friday), with about 15,000 men, the advanced posts of Marshal Baraguay d'Hilliers. They were repulsed by the division Forey, which has admirably conducted itself, and hasearried the villa^eof Montebello already famous, after a fierce contest, lasting four hours. The Piedmontese cavalry, commanded by General Sonnaz, has exhibited uncommon energy. We have made 200 prisoners, a Colonel among them. We have lost 500 men in killed and wounded. This affair redounds greatly to the honour of General Forey, who has displayed as much valour as intelligence. The Austrians have been retreating since yesterday evening. THE BATTLE OF MONTEBELLO. GENERAL FOREYS REPORT. The Moniteur of Tuesday publishes the fullowing:- ARMY OF ITALV.—FIRST CORPS.—FIHST DIVISION. h Official Report of General Forey, transmitted by his Excellency Marshal Baraguay d'Hilliers to the Em- peror. I Voghera, May 20, 1859—Midnight. MONSIEUR LE IIAIIECIIAL, "I have the honour to render you an account of the combat in which my division was engaged to-day. Informed at half-past twelve that a strong Austrian column, with cannon, had occupied Castesgio, and had repulsed from Montebello the Grand Guards of the Piedmontese cavalry, I went immediately to the outposts on the road to Montebello with two battalions of the 74(h, destined to relieve two battalions of the 84th, cantoned upon that road, in front of Voghera, and on the heights of Madura. During this time the rest of my division took to their arms, and a battery of artillery (6lh and 8th Regiments), marched at their head. Arrived at the bridge thrown over the brook, called tI.e Fossiigazzo, the extreme limit of our advanced posts, I ordered a section of the artillery to he ranged in order, supported on the right and left bv two battalions of the 84th, approaching the brook with their sharp- shooters. h During this time the enemy pushed on from Monte- bello upon Ginestrello, and having been informed that they directed their march upon Olein two columns, the one by the highway, the other by the embankment of the railway, I ordered the battalion sf the left of the 74th to cover the embankment to Cascina Nova, and the other to the right of the road, in the rear of the 84th. This movement was scarcely effected when a brisk fusilade was exchanged along the whole line between our riflemen and those of the enemy, who advanced against us, supporting their riflemen by the heads of columns opening upon Ginestrello. The artillery opened their fire upon them with success and the enemy were checked. I then ordered my right to advance. The enemy retired before the attack of my troops; but perceiving that I had only one b utalion to the left of the road, he directed against it a strong column. Thanks to the vigour and firmness of this battalion, commanded by Colonel Cambriels, and to gallant charges by the Piedmontese cavalry, admirably conducted by General Sonnaz, the Austrians were forced to retire. "At this moment General Blanchard, followed by the 98th and a battalion of the 9lst (the other two remain- ing at Oriolo, where they had an engagement), rejoined me and received an order to go to the relief of the battalion of the 74th, charged to defend the embank- ment of the railway, and to establish themselves strongly at Cascina Nova. Encouraged on this side, I again pushed forward my right, and made myself master, not without a serious resistance, of the position of Gnestrello. Con- sidering, then, that by following with the main body of the infantry the line of the high ground, and the com- mon road with the artillery, prelected by the Piedmon- tese cavalry, I should more easily gain possession of Montebello, I organised in the following manner my columns of attack under the orders of General Beuret:- The 17th battalion of Chasseurs supported by the 84th and the 74th, disposed in echelons, were thrown forward on the parts south of Montebello, where the enemy was fortified. A hand to hand fight then took place in the streets of the village, when it was found necessary to raze house by house. It was during this combat that General Beuret fell mortally wounded at my side. After an obstinate resistance the Austrians began to give way before the brisk assault of our troops, and although strongly entrenched in the cemetery; this last position was taken at the point of the bayonet, to the cry, a thousand times repeated, of Vive l'Em- pereur, It was then half-past six; I judged it priuU'- t not to push further the success of the day, and, accordingly encamped my troops behind the declivity of the cemetery, and planted the summit with four pieces of cannon, and a strong body of those troops who had put to flight the last Austrian columns in Cas- teggio. Shortly after I saw the Austrian columns evacuate Casteggio, leaving a rear-guard, and retiring by way of Casatisma. I cannot too much praise, Monsieur le Marechal, the conduct of our troops on this occasion. All- officers, subalterns, and soldiers, have rivalled each other in their ardour. I shall never forget the officers of my etat-major, who supported me most com- pletely. I shail have the honour at another time of address- ing yon iq rfellç ? th9s w4g have more especially <nsunguishedthemse! I do not yet know the exact number of 6dr it it numerous, above all in superior officers, who have suffered largely. I estimate the entire amount at from 600 to 700 men killed or wounded. That of the enemy must have been considerable to judge from the number of dead found, particularly in the village of Montebello. "We have taken about 200 prisoners, among whom arc a colonel and several officers. Several artillery ammunition chests have also fallen into our hands. "As tor me, Monsieur le Marechal, I am happy that my division has been the first to engage with the enemy. This glorious baptism, which recalls one of the splendid days of the Empire, will mark, I hope, one of the steps spoken of in the Emperor's order of the day. I am, with respect, Monsieur le Marechal, 4, Your most humble and most obedient servant, The General commanding the First Division of the First Corps, FOREY. P.S. According to accounts which reach me from all sides, the forces of the enemy could not be less than from 15,000 to 18,000 men; and, if I may believe the statements of the prisoners, they greatly surpass this number." AUSTRIAN OFFICIAL BULLETIN. VIENNA, TUESDAY.—The bardo-irencn troops nave retreated across the Sesia, to the western bank of the river. At Borgo-Vercelli a Piedmontese squadron of dragoons have been put to flight by an Austrian recon- noitering partv. Garibaldi entered Varese yesterday with 6,000 men. VIENNA, TUESDAY.—The following news from the seat of war has been received from Gerlasco, the Austrian head-quarters:—Half a brigade of the enemy stationed opposite Ceschi has retired across the Sesia. Precau- tions have been taken against Garibaldi, whose intention was to rouse Como to revolt. A brilliant exploit has been performed at Vercelli by an Austrian squadron of lancers. According to telegraphic advices from the de- legation at Como, Garibaldi entered Varese yesterday at six p.m., with 6,000 men, part of which forec has marched onwards towards Laveno, The official ?Mtier .ZMMy publishes a letter of the Emperor of Apstna to .flic Arch- duke Charles Lewis, Governor of t?e 'Tyro!, 'directing him to prepare the customary Measures for the defe-Il'l of the Tyrol. The committee of the Tyrolean Provincial Diet has been increased by the addition of trustworthy persons, in order by that means to learn the views of the intelligent patriots. BERNE, Tuesday.—Advices have been received from Lugano, stating that the Austrians have left Como and Milan, and concentrated themselves on the river Adda. The French and Sardinians are advancing. VIENNA, May 21.-From a semi-official correspon- dence, regularly addressed from Vienna to some of the more important German papers, we learn the details of the convention lately concluded between Austria asd the Porte. The Sultan has entered into the obligation to collect an army of 40,000 in Bosnia and Albania, as those are the provinces chiefly menaced by the Servians and Montenegrins. 20,000 more are to be posted in the neighbourhood of the Wallachun frontier, whilst the corps stationed in the camps of Sophia and Shumla must be immediately increased to 20,000. As to Austria, the conditions by which she has undertaken to ensure the protection of Turkey are left unmentioned. Eng- land, it is believed here, will not be able to keep aloof very long, owing to the disturbances expected to break out over the who!e length and breadth of the Balkan peninsula. This belief I ought rather to denominate a hope and desire. The statesmen of Austria have arrived at the conviction that nothing but the confusion of a European war can save them from the consequences of the terrible tete-a-tete now forced upon them by their French suitor. Like men in despair, who trust in the indefinite chances of the future, they are determined to do everything leading to an extension of the war over countries, empires, and, if possible, continents. Who knows, but they may gain on the one side what they are certain to lose on the other? The armaments continue on a scale of expenses which none but beggared and bankrupt states would dream of adopting. And where, indeed, is the end, when the Im- perial exchequer can drain the pockets of the people of every silver florin they may be so unfortunate as to pos- sess, compelling them at the same time to give up as much of their valuables as the state may require, in ex- change for its own worthless paper money? I think I am not mistaken in stating that the last general recruit- ment, commanded a few days ago, will yield a harvest of 350,000 men, raising the total of the army to the enor- mous number of about a million. The Empire is battling for life, and its subjects have to die. To day the Aus- trian contingent for the occupation of the Federal for- tresses of Germany, numbering about 30,000 men, leaves the province of Bohemia, in order to proceed to its des- tination by way of Saxony and Hesse. The Prussian, B varian, and other contingents, intended for the same purpose, are already on the move. 40,000 other Aus- trian troops arc within a few days to be transferred from Bohemia to the Tyrol, taking their route through Bava- ria. All these movements will be effected by means of the railway. To complete to-day's military news, it is necessary to add that the troops of the Grand Duchy of Baden have been ordered to take up their station on the banks of the Rhine, between the fortresses of Kehl and Rastadt. It is nevertheless a fact (and one distinctly asserted in im official communication inserted in most of the Berlin papers) that the French fortresses opposite to those bulwarks of Germany have not yet been so much as armed, and that the troops assembled in the neigh- bourhood of the Federal frontiers are not at all strong enough to be ready for an immediate invasion of Ger- many. SARDINIA. TURIN, Monday.—Yesterday the enemy appeared in great force at Palestro with the object of obstructing the march of a reconnoitring party, which had taken the direction of the Sesia, by order of the King of Sardinia. The enemy's artillery was, however, silenced in every part.—The Austrians have shot an entire family of eight persons, in whose house Austrian guns had been found, The French have occupied Casteggio, where they are fortifying themselves. Yesterday Prince Napoleon-took his departure for Leghorn. The official Piedmontese Gazette states that the Emperor has left this morning for Vogherfi.-The same journal also announces the death of the King of Naples, which happened yesterday at 1.30. Naples is quiet. LEGHORN, TUESDAY.—Prince Napoleon addressed the following Proclamation to the Tuscan people upon his arrival in the port of Leghorn: The Emperor sends me to assist you in the war against your enemies, the oppressors of Italy. I shall not occupy myself with your internal organisation. The sole ambition of Napoleon III is tc liberate Italy, to enable her to make for herself a free Constitution, and thus to strengthen the balance of Dower in Eurooe." SPAIN. Dates from Madrid are to the 19th inst. The Government, it was stated, had just purchased in Eng- land two steamers of 300 horse-power capable of con- veying 600 men each. The director of the artillery had been ordered t,) establish at Seville a manufactory of arms able to produce 30,000 rifles each year. An announce- ment was issued the day before that the Spanish Government had withdrawn the permission which it had accorded for holding a meeting to raise subscriptions for the Italians anxious to return to their own country; such a course, it declares, being an agressive character against Austria, and contrary to a spirit of strict neutra- lity. SWITZERLAND. BERNE, MAY 21.-The Swiss Federal Council, anxious that the war in Italy should not infringe upon the neutrality of Switzerland, has issued the following orders:—" 1. The export of arms and of any munition of war over the Swiss Italian frontier is interdicted. The accumulation of such articles near the Italian frontier is likewise prohibited. In case of acting againet this order all wares of the kind above-mentioned will be confisca- ted. 2. Arms brought from Italy into Swiss territory by fugitives, deserters, or in any other way, will be sequestrated; except weapons carried by travellers provided with regular passports, or by those fugitives who immediately go on to the interior of Switzerland. 3. All fugitives shall be directed to a canton which is in becoming distance to tho Italian frontier, and will have to remain there. Old men, women, and children, and sick persons, shall be treated with due regard con- cerning this order. 4. The passing of persons able to bear arms in order to go from the territory 01 one belligerent power to that of the other is, in all cantons joining to Italy, interdicted. Should the intruders not go back, they are to be ordered into the interior of Switzerland. All deserters or fugitives who do not keep quiet will be expelled." GERMANY. The Munich Gazette of the 19th, says:—An Austrian corps (Carmee of 40,000 men, who are on their way from Bohemia to the Tyrol, will be conveyed on the Bavarian railway from Iloff to Innspruck. These troops will not make any stay in Bavaria, but will only stop at the prin- cipal stations to receive provisions.-A battalion of Hungarian volunteers, 2,000 strong, arrived at Vienna on the 19th, and were received with the most enthusiastic cheers by the people.-The following is the text of the declaration made to the Federal Diet by M. D'Usedom, relative to the proposition of Hanover to place an army on the Rhine:—"Already in the sitting in which the proposition of the Hanoverian Government was made, the Prussian Envoy, by order of his Government, pro- tested energetically against it, and he still maintains that protest. But his Government sees no formal objection to its being brought in due course before the Military Committee. Prussia having repeatedly given a positive assurance to her German confederates while making considerable armaments, that in case of need she would put out her whole strength, and go far beyond her federal obligations to defend the safety and indepen- dence of Germany, the Prussian Government, with a special consideration to the pecuhar position in which another great German power is placed, in consequence of the war in Italy, has a right to expect that its other German confederates will leave it to the initiative of adopting such military measures as may be required. This is the means for obtaining the necessary unity to deal with the question successfully. The Prussian Government cannot give its approval to any proposition which anticipates events, and exceeds the limits of the federal right, and, to its great regret, it will find itself obliged always to protest with the same energy against propositions of such a nature."—A Berlin letter of the 19th says: The King arrived here at eight o'clock yesterday evening. All the royal family and the Court were in waiting at the railway station to receive him. His Majesty afterwards entered an open carriage, and proceeded to Charlottenburg, in the midst of loud accla- mations from the assembled crowd, who threw bouquets of flowers into his carriage."—It would seem that the Bavarian loan goes on almost as badly as that of Austria. The Prussian Gazette says: The payments are made with great difficulty, and letters from Munich state that great mistrust is generally felt on the subject of Joans. Generally speaking, money is not freely lent in Bavaria, even on mortgage." UNITED STATES. ARRIVAL OF THE NORTH BRITON. LIVERPOOL, WEDNESDAY.—The screw-steamer North Briton, with dates from Quebec to the 14th inst, has ar. rived. She brings 220 passengers. A general election was taking place in Nova Scotia. The failure of Mr Jacob Little of New York, had been announced. His liabilities are said to amount to millions of dollars. Havannah advices to the 8th inst had been received at New Orleans. News unimportant. Sugar quiet; Ex- change on London 151 per cent premium. A destructive fire at Oshkosh, Wisconsin, had destroyed the business portion of the town, and damages were estimated at 500,000 dollars, At New York on the 12th, the Stock market was exeited, but closed firmer. Sterling exchange very firm, at 110J to 110|. CANADA. MONTREAL, May 9.—It is with regret that we hear of the resignation, by Sir Bulwer Lytton, of the office of Colonial S?,,e .,? It had been hoped that Canada had at last found a friend in the British Government.-On Wednesday evening last the Supply Bill was carried through the Council, by 24 to 20, thus rescinding the former vote. The twenty members who voted against the bill entered a protest on the journals of the House against the interim removal of the Government to Ouebec A remarkable spectacle was witnessed on this occasion, in the entry into the House of Colonel Prince, one of its members, and an active loyalist during the otltbreak of 1837-8, who was supported to his place by one of the ladies of his family, having come from a bed of sickness, as he assured the Honse," to give his vote for the securing tte passage ofher Nlajesty ,a supfilies.11- A message was received from the Home Government, stating that a bill would be laid before the Imperial Parliament to enable the Legislative Council to elect its own Speaker.—An address to the Queen, inviting her Majesty and any members of the Royal family to visit Canada, to be present at the opening of the Victoria- bridge, passed both Houses.-On Wednesday his Excellency the Governor-General assented to the bills passed by the two Houses, with one bill reserved, entitled" An Act for the Relief of John M'Clean," for the signification of her Majesty's pleasure tbereon.-His .Excellency then closed the session of the sixth Provincial Parliament.

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