Reports continue to arrive from Pekin that the Empress is
arranging for a compromise with France, but no compromise has been made. The Chinese mob is so fierce against the French, even in Hong Kong, that the coolies refuse to load French ships ;
and the Chinese soldiers in Tonqnin have been actively engaged with the French Army. The Foreign Legion was engaged in a reconnaissance "in the Loochoos.n," when the Chinese attacked and killed and wounded thirty-two men. The Legion was apparently repulsed, as General Negrier forwarded reinforce- ments; but the French claim the affair as a victory. It was unimportant, except as showing that the Chinese are not retiring. On the other hand, Admiral Courbet has carried Kelnng in Formosa for the second time without trouble ; and Admiral Lesph is attacking Tamsui, the neighbouring port, which gives access to the coal-mines. The French are determined to have these mines, which are more important to them than any province ; and the Chinese are defending them with unusual vigour. All this does not look like peace, but it is quite possible, if the indemnity is commuted for a lease of the mines, redeemable by certain payments, that the intrigues within the Palace may lead to peace. Two parties are fighting for ascendancy in Pekin, and the pivot round which they fight is the negotiation with France. It is probable that no decisive step will be taken until the Chambers have met on the 14thinst.