The special correspondent of the China Mail writes from Amoy on the Ist August:—'TI hear from a reliable source that the Japanese will not evacuate the island except on receipt of an indemnity for the expenses of their expedition. On the other hand, the Chinese laugh at the demand, and have sent an ultimatum to the Japanese to leave within 100 days from the 21st June. The Japanese have cut a road from Liangkiau in a direct line to the eastern coast, and have occupied the coast this side (west) to the north of the new road, Such being the case, a war is almost paration for such a contingency. They inevitable, and China is making every pre-
ave contracted, it is said, to have a cable Jaid from Taiwanfoo to Amoy at a cost of $800,000. Whether this amount is correct or not i¢ is impossible to say, The Chinese concentrating their troops in Formosa, and every town in the island is to be strongly garrisoned, At Taiwanfoo alone, they have about 10,000 soldiers. Some 7,000 or 8,000 of Li Hung Chang's disciplined troops are coming down; 5,000 or 6,000 from Canton, and about the same number from Chang Chow-foo. The last mentioned force will be despatched to Takow ina few days, Large gans have been bought and Amoy is to be. strongly fortified. A Japanese transport is now in port undergoing some repairs to her machinery. Some of the Japanese officers have been inspecting the dock minutely. Amoy cannot be too strongly fortified, as it will be a very convenient place to either ower in case of war." The writer then es the position, and concludes that pan deserves a good licking" and that she will get it. He gives a report that Japanese man-of-war was wrecked wh surveying the eastern coast of Formosa, but whether she is totally lost or partially damaged, is not known."
Text read from the printed page and cleaned; old type leaves the occasional error.