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

Capt. Osborn assists the Chinese Government in the
command of the fleet he will take the instructions of
the Governors-General and Governors as to the
employment or distribution of the force, In all
operations he is always to confer personally with
those officers before either undertaking or staying
these, and is to accept the Chinese decision as final.*
" 2. Captain Osborn, in the capacity of Assistant
Commander-in-Chief to the Chinese Government,
will receive a commission from the Foreign-office
giving him the requisite powers. The foreign crews
will be daly controlled by him; and in the event of
any individual injuring the people or acting in a
lawless manner, Captain Osborn will exercise due
severity in the punishment of the same, in order to
the sustaining of proper discipline.
" 3. In order to the insuring of beneficial results
from the fleet now purchased by the Chinese Go-
vernment, Chinese sailors, as time and circum-
stances will permit, ought to be chosen for service
on board the steamers, in order that they may be.
come experienced, and that long continued practice
may prevent them from forgetting their duties, and
thorcby rendering the fleet useless. The working
of the ships and the management of the guns and
other arms Captain Osborn and the other comman-
ders will exert themselves to teach to such sailors
in order that they may attaia a real acquaintance
with the same.

"4. It is agreed that for the support of the fleet,
consisting of seven steamers and one storeship, there
shall be appropriated the monthly sum of 75,000
taels. This amount is to cover the expense of salaries,
wages, rations, ammunition, coals, rewards, compen-
sations, as well as every other possible and, at the
present time, impossible to be indicated expendi-
ture. The control of the expenditure is confided to
the Inspector-General Lay. The office of Customs
at Shanghai will provide 10,000 taels monthly, the
Kiukiang Customs will provide 10,000 taels monthly,
the Foochow Customs will provide 34,000 tads
monthly, the Amoy Customs will provide 6,000 taela
monthly, the Canton Customs will provide 10,000
taels monthly, and the Swatow Customs will pro-
vide 5,000 taels monthly. In all will be provided
monthly the sum of 75,000 taels, which in the pro-
portions above-mentioned will be received from each
office of Customs by Mr. Lay monthly. Every
three months Mr. Lay will send in an account of
the expenditure to the Foreign office, which, in
turn, will communicate the same to the Board of
Revenue. Should there be any surplus money, Mr.
Lay will retain it for future use.
" 5. From the 17th day of the 6th moon—that is

from the Ist day of August, it will be the duty of
each of the said officers of Customs to hand over in
full before making any other appropriations from
the duties received, the monthly sum fixed on to
the person appointed by the Inspector-General Lay
to attend at the bank to receive the same. In the
event of the money not being forthcoming, the In-
spector-General Lay will at once proceed to deduct
the same from the duties. For a period of four
years, and for each month during that period, this
rule is to be in force."

No. 5,

CAPTAIN OSBORN'S REMARKS UPON PRINCE
KUNG'S LETTER OF INSTRUCTIONS.

" Pekin, Sep. 28, 1863

" In the first place these instructions are in direct
contravention of my formal agreement with Mr.
Lay, which runs to the following effect :

"That I was to be Commander-in• Chief of the
European Chinese Navy, with entire control over all
vessels of European construction as well as native
craft manned with Europeans in the employ of the
Emperor of China, or under his authority, in the
employ of natives, and I was to have an authority
from the Emperor to cover my acts as the Comman-
der-in-Chief of the European• Chinese Navy. On the
other hand, I bound myself to act upon all orders
from the Emperor conveyed through Mr. Lay, and
not to attend to those delivered through any other

source.
" A copy of this agreement was furnished to the
Prince, yet, in spite of it, and, indeed, ignoring it
entirely (for I am told he has not even acknowledged
the document), the Prince sends me orders to place
myself and my people under the authority of the
Foutai Le, as well as that of no less than three
other provincial authorities.
" Prince Kung acknowledges that the appoint-
ment of Commander-in-Chief of my force was filled
up by the Governor-General of Keang-soo, and
merely confirmed by the Emperor ; and, further, he
(Prince Kung) directs the said Chinese Commander-
in-Chief to repair on board a ship at Shanghai.
This would virtually suspend me from the post I at
present hold, by virtue of a temporary commission
granted me by the Inspector-General, Mr. Lay,
upon the authority of Prince Kung's instructions
and promises of last year.
" Apart from the conclusions which Mr. Lay has
arrived as to the want of good faith displayed in
the document before me, my own suspicions are
aroused by the crafty wording of its contents. In
one paragraph I am superseded, and have, apart
from the Emperor, Prince Kung, end the Board
called the lelinese Foreign-office, all provincial high
officers placed over me ; in another I am enjoined
to afet in a friendly spirit of co-operation with my
superiors; and this is immediately followed by a
carefully worded sentence, in which I am distinctly
warned that the distribution of the force will be
dependent upon the whim of the governors and
governors-general of the provinces, that lam to
follow their instructions in all things, and, as the
original document runs, I am ' not to act, advance,
retire, or remain stationary without conferring
with those dignitaries, and to consider their decision
as final.'
" Mr. Lay says very justly in his marginal notes
that those conditions would practically place me
under the orders of the lowest officer on the list of
either of the officials named.
"I have no intention of submitting to such terms,
and for the following reasons :
" 1. Naval operations for the suppression of all
the disorders enumerated in the Prince's orders
could not be successful, fettered as I should be under
such a system. It may be the Chinese system ; if
so, it explains their unfitness for war or naval
operations.
" 2. I came here to serve the Emperor, and under
him the Regent, not to bo the servant of mere pro-
vincial authorities. On that point I stand distinctly
upon the terms of my agreement.
" 3, The officers and men of the force were en-
tered upon a specific agreement to serve me as Com-
mander-in-Chief. Directly a Chinese officer steps
in as my superior in that force the agreement is
null and void, and without it all law and order
would cease and my power be at an end.
" 4. By submitting to such instructions and vio-
lation of my original agreement I should at once
deprive myself of the power to assist in carrying
out in China the policy of Western civilisation. My
force, powerful as it es ill be for good or evil, might
be directed against the interests of commerce or of
common humanity. Brutal butchery might be per-
petrated, and I should be powerless to prevent it.
My men and officers, the pick of many from the
Royal Navy of England, would be associated upon
equal terms with the rowdies and pirates the Foutai
might be pleased to employ.
"My power to restrain my own men within the
bounds of ordinary discipline would be nil, and the
European-Chinese force, instead of being a blessing,
would become a curse to the Chinese people and to
the best interests of Europe in this empire.
" 5. If I was weak -enough to forget what is due
to my own position, and attempt to act upon such
instructions, I am certain that I should come to a
dead-lock with the provincial authorities within a
month, exactly as is at present the case with Major
Gordon, RE. He is insulted by his Chinese superior,
the pay of his men suddenly stepped at the will of
the Foutai, he is called upon to attempt impossibili-
ties and deprived of adequate forces, and ho has
again, for the second time, virtually resigned office
as the military coadjutor of the Foutai. Yet they

These conditions would practically place you under the
orders of the lowest officer on the staff of either of the offi-
cials named. Prince Kung has seen that our military offi-
cers will act under Taoutais and Foutais, and hence it has
occurred to him that if you could be persuaded to occupy a
similar position the Imperial Government would be relieved
of all trouble and responsibility. I have told the Ministers
that I would rather see the force disbanded and the ships
sold than consent to such a proposition ; there can be but
one naval Commander.in-Chief, yourself, and but one
master, the Imperial Government. IL N L.