Iris scarcely necessary for us to say that the present situation of affairs is extremely critical one. So much is self-evident, But the details of the tuntion are not generally known; and th we will now proceed to sum-mange in as fow words as possible. In the first plice, the officials of Shanghai have just been thrown into n state of the profoundest trepidation by the receipt of a Circular from Peng Yii-lin, of a singalnrly alarming and anoxpected nature, his is nothing more nor less than the embodiment of a Secrot Decree, issued by the Empress Regent and addressed to Admi Peng, on the subject of the publication in the columns of the North. Ohina Daily News of the former Bdict appointing Lia Jung-fa, the Black Flag Chief, Generalissimo of the Forces in Tonquin The Decree, a copy of whi hitherto been unable to obtai to the following effect. The Empress groutly incensed at the foot of the secret orders of the Government having been communicated to a foreign n and now commands P'éng Yi form all the Viceroys and Governor: the Bighteon Provinces that, should sack ffenco be repeated, they ure to take stops for the secret arrest of any suspected persons, and, on their guilt being proved, to decapitate them on the spot, without reference to Peking, the official from whose Yamen the document is stolen being liable to punishment and degradnwould be difficult to exnggerald the consternation caused li cial circles by the receipt of this D the effect among the officials city is doubtless much the same as that which will be produced all over China, At Poking, there is very sorious trouble, Counsels are divided, even in the Tsung-li Yamen. The most powerfal man at the present moment is Prince Ch'un, father of the Emperor; and it is not difficult to guess on which side—that of peace or war—bis influence is being thrown. The prevailing anggestion among Chinese statesmen at the pre-out moment is calculated to raise a simile by its amazing naivete, It is gravely proposed to solicit the services of some one Earopean Power to expel the French from Tonquin, the price offered for the work being nothing less than the whole peninsula of Auram itself! This fact we bali strictly trae; and not!
mind, more forcibly illustrate the desperation of the Government than a proposal to the Foreign Ministers which involves the country of one of them going to war with France, and which offers, by way of recompence, what now virtually belongs to France and not to China, But the fact is that the position of the Black Flags is extremely critical, The soldiers are ov the verge of mutiny owing to their pay being three months in arrears Lia has no money in hand, and all his applications to Peking for fands have met with nothing bat edicts ordering Viceroys to provide the supplies which are not forthcoming, That there were Chinese soldiers employed in the defence of Bacuinh we believe to be a fact; but they consisted entirely in an undrilled rabble and a few officers of low rauk, and they ran away as soon as ever they came to close quarters with the enemy. Upon the trath respecting this affair the greater part of the French claim to an indemnity may depend; and if an indemnity be claimed—as we hive good reason to believe it will be—it is clear that it will be the Viceroys and Grovernors that are called upon to find the money who will prove most eager to declare war @Voutrance. Even apart from thi consideration, the cogency of which is undeniable, the provincial authorities generally are animated by a warlike feeling, and, as we have befor pointed out, their influence at Peking is very grout. Much strength will be lent to the position taken up on the part of the high officers by the critical sitnation of Lia, who is now at Chen-nan Kean and in distress. The feeling at Peking against the Frouch can scarcely be ed; while the French, on their side, are fully determined to push matters to the very last extreme,
Text read from the printed page and cleaned; old type leaves the occasional error.