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Already English ships of war were reported to be prowling about in the vicinity of the Liaotung Peninsula. She hastened to demand, therefore, as a set-off for the loss of Kiaochau, a lease of Port Arthur and Talienwan, and a railway concession to unite these ports with the Trans-Siberian Railway.

The next day they reached Talienwan, where the Chinese had five heavily armed batteries, and a considerable garrison, which, however, on the approach of the enemy, abandoned the post without firing a shot. In the forts at this point were found over 120 cannons, two and a half million rounds of ammunition for the artillery and nearly 34,000,000 rifle cartridges.

We felt little surprise that the Chinese should have had the worst of it, for we had had good reason to suspect that their fleet had greatly fallen off from the state of unquestionable efficiency to which English tuition had brought it. Whilst ashore in Talienwan I had a conversation with Mr. Purvis, an English engineer on board the Chih-Yuen.

On the afternoon of the same day two Chinese emissaries came to make a visit of inspection, and in the evening we steamed out of the port, flying the American colours, with nothing of course to fear at the moment. On arriving at Talienwan we found the bay full of shipping. Four large transports were already engaged in the work of embarkation, and another arrived after we did.

We were to be one of a convoy of transports which, sailing at different times from different ports, were to rendezvous in Talienwan Bay on the east coast of the Liaotung Peninsula, where the troops were to be embarked under protection of an armed squadron. There was no time to be lost, and we were to weigh anchor and make for the bay as soon as possible.

No sooner had the Grand Princes of Moscow thrown off the Mongol yoke and become independent Tsars of Muscovy than they began that eastward territorial expansion which has been going on steadily ever since, and which culminated in the occupation of Talienwan and Port Arthur.

The territories of Kiao-chow, of Wei-hai-wei, and of Port Arthur and Talienwan, leased to Germany, Great Britain, and Russia, respectively, for terms of years, will, it is announced, be open to international commerce during such alien occupation; and if no discriminating treatment of American citizens and their trade be found to exist or be hereafter developed, the desire of this Government would appear to be realized.

That is to say, American citizens, British subjects, or the subjects of any other power which has a treaty with China containing "the most favored nation" clause, must be allowed to enjoy precisely the same rights in Talienwan, Kiao Chou and Kwangchowfoo as they would have enjoyed had not those places been surrendered to Russia, Germany and France respectively.

Neither did they make any protest when, immediately following that, similar concessions were made to Russia, to Great Britain, and to France. It was almost immediately after that that China granted to Russia the right of the possession and control of Port Arthur and a portion of the region of Talienwan.

The transports were grouped together and the warships disposed in sections abreast and ahead, with the active torpedo-boats in the rear. Our destination was the estuary of the Yalu, the large river which divides China from the Corea. We left Talienwan on September 14, and reached the river on the afternoon of the 16th.