who had arrived from Macao in the midst of this crisis, at first refused compliance with this demand, but was starved out, and, like Lord Napier, compelled to surrender at discretion. Lin's victory was complete, and on the whole he used it well. All the opium, to the amount of 20,290 chests was, in the sight of all, sunk in the muddy waters of the estuary. All foreigners were now graciously permitted to depart in peace. But it was evident that the matter could not rest here; for Elliott had guaranteed compensation from the State to those traders who had voluntarily surrendered their opium (which was otherwise quite beyond Lin's reach) in order to release from durance vile the European residents whom Lin had unjustifiably seized. War was now inevitable; but its formal declaration was preceded by one or two collisions between the Chinese and foreign ships. One encounter in the Bay of Coalloon led to the total destruction of a fleet of Chinese junks by the English frigates _Hyacinth_ and _Volage_. This was the first experience the Chinese had of our shot and shell, and it should have warned them of what they might have to expect. But it did not. Lin retaliated by a proclamation, addressed to the Queen of England, giving out that for the future "principals in the opium business would be decapitated and accessaries strangled." War followed, and the Chinese were soon brought to their knees. The terms of peace signed at Nankin were the cession of Hongkong, the opening of the ports Canton, Amoy, Foochowfoo, Ningpo, Shanghae, to trade, with consular officers at each place, and an indemnity of six million dollars as the value of opium seized in 1839. The old exclusive trading with "Hong" merchants was abolished, and a fair and regular tariff of import and export customs and other dues was established at the open ports. In this tariff opium was not even mentioned.[17] The author of the _Opium Question Solved_ says: "The negotiators dared not mention it; the Emperor would not legalize the hated source of all his humiliations." So the same system of organized smuggling, only carried on now even more openly than before, went on. This smuggling of opium had been the _immediate_[18] cause of the late war; and it was evident that a cordial understanding between the two nations could not be established while this apple of discord remained in their midst. Yet the English Government was very reluctant even to seem to force opium upon the Chinese against their will. Lord Palmerston's instructions to Admiral and Captain Elliott in 1841 on this matter are very precise. This despatch, indicating as it does our policy in this question both at that time and subsequently with unmistakable clearness, may excusably be quoted here.