Show RETALIATION TALK Ministers Reid and Ribot Reach an Agreement IN REGARD TO RECIPROCITY Which Effectually Demolishes Kalnokys Scheme Emperor William Never Favored It Alleged Insult to the German Flag BEULIN Sept 27 Copyright ISO by the New York Associated Press Information Infor-mation has been received from the German embassy in Paris that the French minister of foreign affairs having agreed with White law Reid the American minister for a reciprocity arrangement between France I and tho United States has summarily settled set-tled the project of Count Kalnoky the AustroHungarian principal supreme minster min-ster for combined reprisals against the United States in retaliation for the McKm Icy tariff bill Emperor William never entertained an idea of reprisals Chancellor von Caprivi has had a conference confer-ence with Herr Miguel and has accepted his scheme to lessen the cost of living t the masses by higher imposts on the mon ied classes the principle involving an early reopening of the German markets t American porK The official impression here is that Minister Min-ister Phelps overtures for a settlement i renewed and backed by some easy concessions conces-sions on German exports to the United States will find a ready response from Chancellor Ton Caprivi Advices from Vienna indicate that tho Austrian government also accepts tho principle prin-ciple reciproity Count Katnoky having instructed the Austrian minister at Washington Wash-ington t make representations in the matter mat-ter of pearl and other Austrian induttries affected by the McKinley bill with a view t negotiations for a treaty Her Miguels financial statements have also influenced military reforms and led to the retirement General Duvcrnois from tbe war ministry and the proffered Designation Designa-tion of Count von Waldersee both of whom urged Emperor William to adopt Scharnharstsplan plan for reorganization of the army involving a heavy increase in the army budget Despite the popularity of Scharnharsts scheme in military cir rica the chancellor has thrown the whole of hu influence against adding t the war budget The preparations against manifestations on October 1 arc equal to the contingencies of civil war The Socialists ridicule the ex pcctation of an ouobrcak knowing the pa I csificcharacter of the arrangements |