“I see you have not been in the ambassador’s confidence,” Impey replied quickly. “China has given to the United States government a sphere of influence to balance those of Japan, Russia, Germany and the other countries of Europe. This sphere is immensely valuable and coveted by Japan, which has without China’s permission begun a railroad connecting the coal and iron fields with the railroad won from Russia. Japan is now wealthy and lacks nothing but war-ships. With the addition of the new Chinese navy she will be in a position to push her railroad clear through into the American sphere, in fact, force America into the embarrassing position of refusing this valuable concession from China.” While Impey talked, the lads’ eyes opened wide in astonishment. They could not believe that such international dishonesty was possible. “How do you know all this?” Sydney asked in bewilderment. Impey shrugged his shoulders. “I have been born and brought up in the Far East. To me the undercurrent of Oriental diplomacy is an open book.” “Does the ambassador know this?” Phil inquired seriously. “Not all,” Impey confided mysteriously. “I have told him a great deal, but not being a military man it would do no good to try to convince him of the danger in the naval supremacy of Japan after acquiring the Chinese ships.” “Captain Rodgers should be told this at once,” Phil exclaimed, rising and taking Impey’s arm. The lad’s manner had now entirely changed. The startling news made him now regard Impey as a friend and ally, trusting him as completely as he would have mistrusted him an hour ago. “I am very sorry that I have misjudged you.” The lad’s voice was apologetic. “I am only glad that I have been able to convince you of the danger to your country,” Impey answered quickly, “but wait; no good can be gained by going to Captain Rodgers. As I said before, he cannot act without orders, and orders cannot come, as all cablegrams will be stopped by the imperial government until Captain Inaba has secured the Chinese ships.” The midshipmen stared helplessly at Impey, an anxious question in their eyes. “The yacht ‘Sylvia’ is our only hope,” Impey whispered in an impressive voice. “She is faster than a scout cruiser, and is coaled and ready to sail. With her we can steam south until we get the fleet at Manila by wireless, and then send them the news. That would allow the American admiral to sail, intercept the Chinese squadron before Captain Inaba could reach them, and take the Chinese ships under the American flag into Manila Bay.” The midshipmen paled at the daring of the plan. “The admiral in Manila would not dare act without direct orders from Washington,” Phil cried earnestly, “and would Washington give such orders without knowing all?”