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

informing me of the refusal of Prince Kung to ratify the
agreements entered into by his agent, Mr. Lay, and your-
self, and of your consequent resolution to disband the force.
"I have informed his Imperial Highness of my convic-
tion that her Majesty Government would not have con-
sented to the organization of this powerful squadron had it
not been on the understanding that it was to be placed under
the orders of an officer, in whose prudence and high cha-
racter they had full confidence—and that I will not consent
to the ships and stores being handed over to the Chinese
Government without instructions to that effect from her
Majesty's Government.
" I, therefore, request you to take measures for keeping
them in deposit until the pleasure of her Majesty's Govern-
ment be known,—l am, &c.,
"FREDERicK W. A, BRUCE."

No. 10.

"CAPTAIN SIIEItARD OSBORN, R.N., C. 8., TO HIS

EXCELLENCY SIR, F. BRUCE, K.C.B.

"Pekin, Oct. 27, 1563.

" Sir,—Consequont upon the receipt of your Excellency's
letter of the 20th inst., in which you acquaint me you will
not consent to the surrender of the ships and stores to the
Emperor of China, and desire me to take measures for keep-
ing them in deposit until the pleasure of her Majesty's Go-
vernment shall be known tho following questions have
arisen in my mind, upon which 1 solicit your early instruc-

" 1. If the Emperor of China should repudiate the ar-
rangements recently sanctioeed for the regular payment of
this force, what steps am I to take to avoid selling the ships
and stores according to the 10th article of my agreement ?
As Prince Kung has already repudiated his former instruc-
tions to Mr. Lay, I am compelled to anticipate the proba-
bility of his treating all the engagements in the same fashion.
"2. Where shall I procure funds for the maintenance of
the force, pending the orders of her Majesty's Government ?
"I have, &e., SILERARD 01:01t,N."

No. 11.

HIS EXCELLENCY Slit F. BRUCE, K.C.8., TO CAPTAIN
SILERARD OSBORN, R.N., C.B.
"Pekin, Nov. 6, 1863.

"Sir,—As you are aware, the scheme of keeping the
ships of the flotilla in deposit, awaiting instructions from
her Majesty's Government has been abandoned, and the
Chinese Government has requested me to send the vessels
to England to be disposed of. His Imperial Highness ex-
presses his thanks to yourself for the trouble to which you
have been put in procuring the fleet, and in bringing it out
to China, and requests you to accept 10,000 tads in addition
to your pay for the labour entailed upon you by it.
"He further requests that the ships may be put under
another flag. That, however, is a point which must be left
to your discretion. I have, therefore, to request that you
will take charge of the vessels and men, with a view to the
disposal of the former in England or in India, as you think
best. The officers and men to be sent home and to be paid
up to their arrival in England.
"But as the contract may be construed to give them a
claim for pay for three months after their arrival, or up to
the 20th of August, it will be advisable to obtain the opinion
of counsel as to the liability of the Chinese Government,
they having declined to accept the flotilla, on the ground of
their agent having exceeded his authority in the conditions
attached to the scheme, you will feel with me that our honour
is involved in winding up this affair on terms as little onerous
as possible to the Chinese Government. I will give in-
structions to the consuls to contribute what may be required,
out of the moneys received by them on the indemnity ac-
count, to meet such part of the expenses of sending the
vessels home as the Chinese Government is unable to pro-
vide for. The stun, so advanced, will form a lien on the
ships and to be deducted from the expenses of sale, or set-
off against the ships and stores, should her Majesty's Go-
vernment decide on taking any of them back.
" I think it but just to you to express my entire approbation
of the honourable and dignified course you have pursued
during the discussion of the question at Pekin. An o flicer
more alive to pecuniary advantages, less scrupulous as to
the interests of Great Britain, and less careful of his own

honour, might have admitted some unse tisfactory compro-
mise as to his position, and might have trusted to an arbi-
trary exercite of the power wielded by him to have extricated
himself from future embarrassments. By your firmness you
have saved Great Britain from complications, and you have
vindicated the honour of the British uniform in the eyes of
the Chinese by refusing to accept au unbecoming position.
However disappointing the result of your honourable wish
to advance the cause of progress in China, you have the
consolation of knowing that you have gained the respect
and approval of persons of every nation who arc acquainted
with the course you havo pursued.
_ _

" I am, sir, your obedient humble servant,
" FREDERICK W. A. BRUCE."

(GENERAL MEMORANDUM.)
" Tien-tsin, Nov. 9, 1863.
" I have with great regret to inform the officers, seamen,
and marines under my command that it has been necessary
to send them to England in consequence of the Emperor of
China having refused to ratify the agreement entered into
between myself and his agent, Inspector-General H. N.
Lay, C. 13., upon the faith of the Prince Regent's instruc-
tions.
" The Emperor wished to place the entire control and
disposition of the squadron under the irresponsible autho-
rity of the provincial mandarins, and to supersede me as
Commander-in-Chief, leaving it to the local mandarins to
form as many squadrons of European vessels as they might
see fit, under different officers and under different aystoms
of pay and discipline.
" Were Ito accept such a position for this force, and thus
take service under provincial and subordinate Chinese Ai-
, cials, instead of under the Emperor of China, I should vie.
late the spirit and word of her Most Gracious Majesty's
Order in Council, and act in disregard of the wishes of her
Majesty's Government forgetful of every pledge I gave be-
fore I undertook the organisation of the squadron.
" To surrender ourselves to the irresponsible orders of
local mandarins would certainly make us participators in
acts of plunder and cruelty which would bring disgrace
uponus as British officers and seamen.
" I have, therefere, had no hesitation in refusing to depart
from the terms laid down long before we left England.
" Provided the crews continue to conform to the rules and
regulations of their agreement, they will bo kept upon full
pay until their arrival in England, and receive whatever
further sum they may be justly entitled to under its con-

ditions.
"It only remains for me to cordially thank tho captains,
commanders, officers, seamen, and marines of the squadron
for their hearty support and excellent conduct during the
time the vessels have been in commission, and to wish them
a pleasant and speedy passage to their homes,
"SJIERA.RD OSBORN, Captain, Royal Navy."

" Cheefoo, Nov. 14, 1863

" Sir,—We, the captains and commanders of the Euro•
pean-Chinese navy, consider it but just to you to state for-
mally that the course you have deemed right to pursue in
disbanding the said force has only servod to strengthen
those feelings of reliance and 'respect which induced us to
take service under you. .

" And, further, that by your firmness with the Chinese
Government in refusing to act under any other authority
than that of the Emperor himself, you have saved us from
an essentially false position, one which could only have been
as repugnant to cur own feelings as it would have been to
yours.—We are, sir, your most obedient servants,
"Hum! T. BURGOYNE, V.C,, Pekin.
"C. S. FORBES, Keangsoo.
" S. MORIARTY, Ballarat.
"NOEL OSBORN, China.
"ALLEN YOUNG, Quantung.
"G. B. NICHOLAS, Tien-tsiu.
"D. OBATIKSHANK, Thule.
" To Captain Sherard Osborn, Commander-in-
Chief, European-Chinese Navy."