The uncertainty which prevailed as to the issue of the negotiations between China and Japan, regarding the Formosa expedition, was put an end to on Saturday, by the arrival of steamers from the North bringing not only news of the peaceful settlement of the difficulty, but the Jax panese Ambassador Okubo, and his numerous suite. A treaty embodying the terms of actilement was eigned on Sist October by the Japanese Ambassador and the Chiefs of the Tsung-li Yamen, So far as we have been able to ascertain, it admits, on the part of Japan, the sovereignty of China over the whole of Formosa; and on the part of China, that Japan waa justified in despatching the expedition, under the circumstances of the massacre of her Loochewan subjects and the action taken upon it at the time the treaty of friendship and commerce was negotiated between the two countries. It then provides for the payment of a sum of Tis, 500,000, one-fifth of which is in the nature of componsation to the families of the murdered Loach and is to be paid at once; the remaining Ts, 400,000 as indemnity for the roads and buildings made and erected by the Japanese in Formosa, to be paid when they retire from the island, which it in stipulated they shall do by 20th December. The indemnity is to be paid out of the revenues of the Foochow and tientsin Customs. The Japa i ioner having thus loft Peking at once; and it is now intention, we understand, to proceed very shortly to Amoy and Formosa, in the Kanagawa-maru (late P. & O. atx, Madras,) instead of returning direct to Japan, in order that the stipulations of the treaty may be carried out under his own eye. It in difficult to understand the object of his doing ea, but it may be conjectured, if we recall the contradictory conditions under which the expedition sot out from Japan. The Kanagawa-maru arrived here on Sunday, in order to be at the disposal of the Commissioner. The Japanese Resident Minister, Yanigawari, remains at Peking, as we are informed, to have audience of the Emperor before returning to Japan, General Lo Gendre and other gentlemen connected with the Embassy have gone to Japan in the war-vessels which were waiting the result of the negotiations at Tientsin and Chefoo, Congratulatory and complimentary and in Shanghai.
Immediately previous to the settlement arrived at, the course of the nego appears to have been extremely critical, and hence the contradictory reports that emanated from the capital—the rumours of war which alternated with assurances of pence. About the middle of October the difficulty was in a fair way to be adjusted, but a few days later, when the question of indemnity was broached, the understanding partially arrived at came to naught. Okubo la reported to have suggested an indemnity of five millions as the price at which the Japanese were willing to retire from Formos, snd acknowledge the
Text read from the printed page and cleaned; old type leaves the occasional error.