M. Jules Ferry is said to have acknowledged that he
has demanded an indemnity from China, as punishment for her- conduct in sending troops to Bacninh without a declaration of war. As the troops ran away, this would not appear a great offence, more especially as China was asked to send them by
the Monarch in whose name the French are acting; but M. Ferry's real object, as we have explained elsewhere, is to compel China to choose between peace and war. He thinks that, the alternative being once presented, she will cede Tonquin to avoid paying an indemnity. The demand will reach Pekin while the war party is in power, the Dowager Empress, irritated by the fall of Bacninh, having invested the head of that party, Prince Chun, Na ith a Regency. It is not certain, however, that Prince Chun will fight, as he is aware that the French would seize Amoy and Hainan, and that he has not the troops to drive them away. His Regulars evidently cannot be -fully trusted, and it is difficult to employ the Tartar troops in the South. The Chinese Government will, of course, endeavour to gain time, but they must decide before September, as an Expedition, if that is required, must Land in October, to avoid the heats. A report that Amoy had been already seized is -denied.