[9][10] These processes began with the creation of the Ryukyu Domain in 1872 and culminated in the kingdom's annexation and final dissolution in 1879; immediate diplomatic fallout and consequent negotiations with Qing China, brokered by Ulysses S. Grant, effectively came to an end late the following year.
[13][14] At the same time, the Kingdom continued its tributary relationship with Imperial China, both receiving and sending missions; this dual status is sometimes reflected through a four character idiom that means "belonging to the family both of Nippon and Shina" (日支両属).
[12][14] Thus the political status of the Ryūkyūs vis-à-vis the rest of Japan was exceptional in at least three ways: part of the han system, but not directly; ruled over by kings; and the locus of semi-autonomous diplomatic ties with foreign powers, despite sakoku or the "closed country" policy.
[1][12] In May the following year, negotiations with China over the incident still ongoing, Vice Treasury Minister Inoue Kaoru proposed annexation of the Ryūkyūs, arguing that they had long been subordinate to Satsuma, and that their "return to Japanese jurisdiction" would allow for a "single system for the homeland".
[8][11] In the New Year of 1872, Narahara Shigeru and Ijichi Sadaka [ja] crossed to Ryūkyū where, in discussion with court officials, they agreed to waive the Kingdom's former debts to the Shimazu clan of Satsuma.
[8] The local government agreed to the sending of officials and students and to a minimal garrison, while rejecting sole use of the Japanese nengō, domestic reform (citing societal differences), and restriction of its diplomatic rights, excusing Shō Tai from travel due to his illness.
[8] In his report to Premier Sanjō Sanetomi of 25 September, a frustrated Matsuda made mention of the possible future abolition of Ryūkyū Domain and establishment in its place of Okinawa Prefecture.
[8][15] In January 1879, Matsuda sailed south a second time, meeting with Domain officials in Shuri and reading out a message from Sanjō Sanetomi demanding severance of diplomatic ties with China.
[15] After some further weeks of delay, possibly with a view to giving China time to intervene (leading Ryūkyūans crossed over to the continent and a letter from Prince Gong was sent to the Japanese ministry in Beijing drawing attention to China's respect for Ryūkyū's sovereignty and calling on Japan to abandon its plans, the response being that this was an internal affair and other countries had no right to interfere), on 27 May Shō Tai sailed for Tōkyō, where, after an audience with the Emperor, he took up his position as Marquis in the kazoku peerage system.
[11] With the Qing government vehemently protesting the annexation, spurred on by hawks advocating armed resolution, the Ryūkyū question became an important contributing factor in the build up to the First Sino-Japanese War.