The Sun.
London, England, 1864-01-11 00:00:00

against its being misapplied,! and thereby bring
scandal upon ourselves and those who in Great Bri-
tain have promoted our views; above all we are to
take care that the great power and proportionate
responsibilities conferred upon us by her Majesty's
Order in Council be not abused by uF, by our suc-
cessors, or by the Chinese authorities.
" Clause I.—This condition needs no explanation,
It is made a sine qua non by Capt. Osborn.
Clause 2.—This we agree is most necessary. We
are aware that for some time local Mandarins have
been, without Imperial authority, purchasing ves-
sels of Earopean construction, arming them, placing
crews of all nations in them, and giving over the
command to British or American subjects selected
by themselves. Lorchas or junks commanded by
Europeans, half pirates half privateers,:ge swarm-
ing in the Yangtsze.
"They claim in many cases to be men-of-war be-
longing to particular Mandarins, Guilds, or Hongs.
It is the object of this force to extinguish all these
dangerous freebooters. They should come under
Imperial authority, without which no European has
a shadow of right to levy war i❑ China.

" Clause 3.—This is inserted to meet any objec-

tion that might be raised on the ground that Euro-
peans are serving without commissions or direct
authority from the Emperor.
" Clauses 4 and s.—These are to meet the follow-
ing difficult questions :—ls this squadron to carry
on war in China upon a Chinese method? Through
what channel is Capt. Osborn, unacquainted as he
is with . the language, to communicate with the
Emperor or Regent? How shall he be protected
against the charge of disobedience of orders ? How
are cruel or unjust orders from Pekin to be pre-
vented? How shall European officers and seamen
levy war for a barbarous Sovereign without being
made to participate in acts which our country
would repudiate ? How shall the officers be pro-
tected from orders, the execution of which would
involve breaches of iuternational law or treaty
rights.

" There is in our opinion no other way of meeting
these difficulties than by arranging that, as Mr.
Lay is to live in Pekin, and as the revenue which
he collects is to be the guarantee for the mainte-
nance of the force, he, as one well competent from
a knowledge of the language and people should
be the channel of inter-communication between the
ruler of China and Captain Osborn, and that in the
event of any order being at variance with law or

justice, he should submit it to the European repre-
sentatives, and, supported by them, decline to com-
municate it to Captain Osborne. The remaining
clauses do not seem to us to need explanation."

No. 3.

INSPECTOR-GENERAL H. N. LAY, C.B„ TO CAPTAIN
SHEIZARD OSBORN', R.N, C.B.

" Pekin, Sept. 25, 1863.

" Sir,—l beg to inclose for your information the
translation of a letter to your address from the
Prince of Kung, which was sent to me in Jelly last,
and to invite your attention to the marginal notes
I have appended to it. From my remarks you will
see that the Prince has not been quite accurate in
making it appear that I had requested the appoint-
ment of a Chinese officer to command the steam
fleet, or that I had consented that the fleet should
bo placed under the irresponsible authority of the
local officials, as my letters to his Highness, which
are upon record, show.
" I never gave more than a qualified assent to
the rules with which ho has furnished you. I ac-
cepted the money clauses, but those having refe-
rence to yourself and the fleet generally I told the
Ministers plainly would have to be considered upon
your arrival. TnePrince doubtless thought that by
declaring positively that these rules had been agreed
to by me the chances of your offering any opposi•
lion to them would be dimiuiibed.--I have, &c.,
" H. N. Lay.

No. 4.
PRINCE KUNG'S LETTER OF INSTRUCTIONS TO CAP •
TAIN SHERARD OSBORN, R.N., 0.1.3, (WITH MR,
LAY'S MARGINAL NOTES.)

" Pekin, July 8,1663.
" His Imperial Highness the Prince of Kung issues
these instructions to Osborn, the Assistant Com-
mander-in-Chief of the Chinese steam navy.
" Whereas China, in view of the then unfinished
military operations, did last year direct the Inspec-
tor-General of Customs, Lay, to purchase foreign
steamers and guns for use in the fight and for the
subjugation of the foe, and whereas the said Inspec-
tor-General has arrived at Pekin, and reports that
the seven steamers and the storeship purchased will

shortly arrive at Shanghai, and requesting the ap•
pointment of an (fiber to take the command, highly
recommends the said Osborn, as having hitherto in
England been zealous in the performance of his
duties, of high military cipacity, and being
throughly versed in navy affairs, able to
acsist a high Chinese officet* in the manage-
ment of such vessels, so that there may there-
from be expected a speedy sweeping away of the
appearance of rebellion ; and whereas I, the Prince,
memorialised the Throne, requesting that the
officer already nominated by the Governor-General
of the Two Keang and the Governor of Keang-soo
might be appointed Chinese Commander-in-Chief
of the Fleet, and that the said Osborn might be
appointed Assistant Commander-in-Chief, and that
the expenditure of the fleet should be controlled for
a period of tour years by the Inspector-General
Lay ; and 'whereas on the 23d of the sth Moon
(July 8) the Imperial edict was received, ' Let it be
as proposed. Respect this.'
" Now, therefore, in addition to hurrying de-
spatehea to the Governor-General of the Two Keang
and the Governor of Kean-soo, that they may at
once order the Chinese Commander-in-Chief to re-
pair to Shangllai with his officers and men, and take
up his commission on board ship, it is further ex-
tremely proper to furnish the said Osborn with a
copy of the agreement, in five articles,f entered
, into between the Inspector-General Lay and the
Foreign-office, and to appoint the said Osborn to
be Assistant Commander-in-Chief, and to direct
him, in accordance with the articles of the agree-
mint, to co-operate with the Chinese commander-
in-chief in the command of the fleet now commis-
sioned,

" It is to be expected that the fleet will act with
vigour against the enemy. The crews are to be kept
under strict discipline, and not suffered to annoy the
people. if trading vessels, whether Chinese or
foreign, illegally engage in the carriage of muni-
tions of war, they arc to be seized and detained
until receipt of orders from the Foreign-office. If
there are pirates on the Chinese seas or rivers from
time to time, no matter where the place may be,
they arc to be captured and destroyed, in order to
the complete restoration of tranquillity.
"As regards smuggling and smuggling guilds at

" (Enclosure.)

the ports on the coast and up the rivers, the fleet is
authorised to take measures for the due repression
of the same. The said assistant commander-in-
chief will, moreover, consider himself under the
orders of the Governor-General of the Two Keang
and the Governor of Keang-soo, and will take
their instructions as to the disposal from time to
1 time of his force,

"Five rules agreed upon respecting the steam
fleet : --T

" 1. It has been settled that the post of Chinese
Commander-in-Chief of the steam fleet now pur-
chased shall be filled by the high officers selected by
the Chinese Government, and that Captain Osborn,
C. 8., a British subject, shall be assistant Comman-
der-in-Chief for a period of four years. The affairs
of the fleet to be managed by the said Commanders-
in-Chief in a friendly spirit of co-operation. While

* This is not correct. So far from requesting that a Chinese
should be appointed, I told the Ministers when they brought
forward the proposition that it was altogether out of the
question.
-t The Prince chooses to assume that the rules were agreed
while the fact is that I declared over and over
atogabiy m
again
thea't assent to them was impossible, my most decided
opinion being that to accept the terns proposed would be to
court certain failure and discredit.
+ I forwarded a translation of our agreement officially to
the Prince, and in my covering letter called his special atten-
tion to the point embodied in that agreement—viz., that you
would be under the orders of the imperial Government at
Pekin, and the Imperial Government alone. His Highness
ignored myletter, and up to this time has not acknowledg:d
its receipt. Neither has he, I may add, approved the gene-
ral agreement and book of instructions, which shows (were
other proofs wanting) that he conid not have been under the
impression that the questions relative to the steam fleet
were disposed of.