Note 12 — ARBITRATION.

This dispute had assumed quite a serious and menacing character when the ex-president Grant, on his journey round the world, came to China. When his arrival became known, the Chinese prince, Kung, submitted to him that he should use his great influence in mediating between the two countries. A specially interesting conversation followed: "We have," said Prince Kung, "studied international law as it is set forth by English and American authors, whose works are translated into Chinese. If any value is to be set upon principles of international right, as set forth by the authors of your nation, the doing away with the independence of the Liu Kiu Islands is an injustice." Grant reminded him that he was there only as a private individual, but added, "It would be a true joy to me if my advice or efforts could be the means of preserving peace, especially between two nations for whom I cherish such interest as for China and Japan." Immediately afterwards he returned to Tokio, the capital of Japan, called upon the Emperor and his Minister, and advocated a peaceable settlement of the dispute. He wrote to Prince Kung the result of his mediation, and produced a scheme for a Court of Arbitration.