Note 11 — ARBITRATION.

The Japanese Government demanded redress, which was at first refused by China. This led to a stormy correspondence, which at last became so bitter that both sides prepared for war. The Japanese troops had already taken possession of Formosa. During this dangerous juncture, the British minister in Pekin, Sir Thomas Wade, offered to mediate as an arbiter. The offer was accepted, and led to an agreement between the Chinese Government and the Japanese ambassador in Pekin, by which China was to pay Japan 50,000 taels, and the Japanese troops were to evacuate Formosa. When Lord Derby, who was at that time Foreign Secretary of Great Britain, received a telegram from Sir Thomas Wade respecting this happy result, he answered him: "It is a great pleasure to me to present to you the expression of the high esteem with which her Majesty's Government regards you for the service you have rendered in thus peaceably adjusting a dispute which otherwise might have had unhappy consequences, especially to the two countries concerned, but also for the interests of Great Britain and other parties to treaties." Sir Harry Parkes, the English minister in Japan, wrote to Lord Derby, that the Mikado, the Emperor of that land, had invited him to an interview for the purpose of expressing his satisfaction at the result, and through him to present his warm thanks for his brave and efficient service. The Japanese minister in London also called upon Lord Derby and expressed the thanks of his Government to Mr. Wade. "He could assure me," said Lord Derby, when he repeated the words of his excellency, "that the service which has thus been rendered will remain in grateful remembrance among his countrymen."