It became apparent that the Viceroy, Tseng Kuo-fau, rested his faith on diplomatic fencing. The first step of our diplomacy was to seize the Chinese screw gunboat _Tien Chi_ as a material guarantee for fulfilment of the claims of our Consul. One of these was that proclamations engraved on stone should be erected in the principal places, acknowledging the full right of Europeans to reside and exercise their calling. Compensation was demanded for the injuries inflicted on the persons and property of the missionaries; these and some minor demands were at once conceded, and the gun-boat was released. Subsequently the Consul, accompanied by a strong landing party from the ships, under the immediate command of Captain Heneage, proceeded to Yeng Cheow, where they remained until the Viceroy’s concessions were enforced. During the past year British subjects and other foreigners have been repeatedly maltreated by people connected with the local authorities at Taiwan and Takan in Formosa. The Tontai attempted to carry out a monopoly of the camphor trade. Six thousand dollars’ worth of that drug, owned by Messrs. Ellis and Co., was seized. An Englishman named Haidore was stabbed. Dr. Maxwell, a missionary, was accused of murder, and the mode of proving his guilt was somewhat curious. A mob, bearing on their shoulders a native joss, carried it round the house, and suddenly stopping, the hand of the image was made to point to a certain spot, where they commenced digging. To the astonishment of the Doctor, a number of human bones were turned up, which, of course, had been previously placed there. Notice of this “discovery” was published, stating that the bones were those of Maxwell’s victims, and his house was burned down. The Consul, Mr. Gibson, when about to start for Pitows to confront Dr. Maxwell with his accusers, got information of three ambuscades prepared to intercept him on the road. Other outrages occurred and native Christians met with inhuman persecution. The Chinese authorities evaded our claims for redress; at one moment pretending to concede, at the next withdrawing their promises. The Tontai of Amoy was ordered from Peking, to proceed to Formosa and settle all existing difficulties; but he coolly informed Her Majesty’s Consul on his arrival that they appeared to him of so little importance, he was determined to return to Amoy without any practical investigation into the real state of affairs. Mr. Gibson saw that some material guarantee was necessary for the fulfilment of his claims, and requested Lieutenant Gurdon of the _Algerine_ to occupy Amping and the Fort of Zelandia, which forts constituted the key to the capital of Formosa, Tai-wan-foo, from which they are distant some 3000 yards.