Two most unexpected pieces of intelligence have arrived from China
this week. The Emperor, after threatening to drive the Japanese out of Formosa, buying an ironclad, and collecting an army at Amoy, has signed a peace, under which he agrees to pay £125,004 to Japan, and acknowledges that the invasion was justifiable. The Japanese, on their side, agree to evacuate Formosa, and to recognise Chinese authority in the island. They have never de- nied this, but, on the contrary, claimed from Pekin redress for Formosan outrages. It would seem that there had been a great struggle in the Imperial Palace as to the policy to be pursued, for on 10th September, Prince Kung, the late Regent, and strong advocate of peace, was by Imperial Decree degraded from his hereditary rank, only to be restored to it next day by another and equally solemn document. His assigned offence was want of decorum towards the Emperor, but his real one, that of press- ing peace too resolutely on his master. The incident, which we have discussed elsewhere, seems to render it certain that the Emperor himself, though still under tutelage, is personally favour- able to the Nationalist or Anti-foreigner party, a fact which may have serious results.
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