Tae rival claims of China and Japan for the group of the islands of Loochoo remain unsettled, and indeed the national susceptibilities of the two Empires haze been so much excited that any endeavours of neutral Powers to bring about reconciliation by arbitration would at the present time be in vain. It is known that while the alarms of the impending war sith Russia Insted the Peking statesmen were, under the stress of force majeure, willing to cede for some nominal consideration the best of the islands to Japan, as the price at which Japanese neutrality could be obtained. For this end negotiations went on in both Peking and Tokio, but the Chinese wore suspicious, and the Japanese Ministers were peremptory. Suddenly, before any final agreement had been made, Tséng's treaty of peace, Tso's arrival at Peking, and the unwise petulance of Mr. Shishido, the Japanese Envoy—three concurrentcircamstances—had the effect of bringing about the complete withdrawal of all overtures made by China in the days of her anxieties. Mr, Shishido returned to Tokio, where the Chinese Envoy Ho.still tarries after many leave-takings. The two nations are estranged just as they were at the time of the filibustering raid on Formosa. The position of affairs is this. China will not renounce what she holds to be her ancient rights, and regards the annexation of the Loochoos og n fingitious act. Japan justifies hor sudden notion of annexation by citing the old submission of the little island kingdom to the Prince of Satzuma, the hollow forms of the Chinese suzorniuty, and the real inconvenience of political relations before the deposi. tion of the late King. The islands have a strategic importance to China; the chief trade, however, is with Japan, which grows but little sugar and imports all that the Loochoos can produce. The annexation mast not be considered per se. It is the more aggravating because it followed the hostile acts of Japan towards China in Formosa and later in Coren, and the irritation of China is kept alive by the belief that if war had occurred with Russia Japan would probably have taken the opportunity of China's distresses to occupy Formosa, The rights of the rival claimants to suzerainty are of almost equal value in a dialectic sense. Japan depends on the products of the island and has had, since the submission to Satzuma, a real hold, The legal claims of China are known to be valid and unbroken, If even the two Empires resort to the arbitrament of skilled judges, the proofs of ench side will be numerous, the investigation will be Inborious, and decision difficult. The balance of historical evidence is held to be in favour of China, but the virtual possession by Japan has been Jong and undisturbed. In the meanwhile, the Chinese national spirit has beau excited and a good pretext was found for commencing the necessary improve. ment for developing the militant. power of Chinn; particularly there is another reason for the unfriendliness of the two Empires, in the question of Corean relations. In 1876 Japan, which had reason for complaint against Coren, sent an armed oxpedition to demand reparations. Apology was made, and Mr. Inonye—now Minister of Japanese Foreign Affaira—extorted a treaty whose thorough. ness would horrify the estimable Governor of Hongkong and the disinterested Sir E, J. Reed. The Japanese treaty contemptuously ignored the suzerain rights of China, and established an effectual control over the external policy of the Corean king. dom. The treaty, however, has no value whatever, and whenever it suits England, or France, or Germany, or Italy, or the United States to deal with Corea, the Japanese rights of
Text read from the printed page and cleaned; old type leaves the occasional error.