Once more the picture changed very sharply and suddenly. The Mongolian Sait received news through the Lamas of the nearest monastery that Colonel Kazagrandi, after fighting with the Chinese irregulars, had captured Van Kure and had formed there Russian-Mongolian brigades of cavalry, mobilizing the Mongols by the order of the Living Buddha and the Russians by order of Baron Ungern. A few hours later it became known that in the large monastery of Dzain the Chinese soldiers had killed the Russian Captain Barsky and as a result some of the troops of Kazagrandi attacked and swept the Chinese out of the place. At the taking of Van Kure the Russians arrested a Korean Communist who was on his way from Moscow with gold and propaganda to work in Korea and America. Colonel Kazagrandi sent this Korean with his freight of gold to Baron Ungern. After receiving this news the chief of the Russian detachment in Uliassutai arrested all the Bolsheviki agents and passed judgment upon them and upon the murderers of the Bobroffs. Kanine, Madame Pouzikoff and Freimann were shot. Regarding Saltikoff and Novak some doubt sprang up and, moreover, Saltikoff escaped and hid, while Novak, under advice from Lieutenant Colonel Michailoff, left for the west. The chief of the Russian detachment gave out orders for the mobilization of the Russian colonists and openly took Uliassutai under his protection with the tacit agreement of the Mongolian authorities. The Mongol Sait, Chultun Beyli, convened a council of the neighboring Mongolian Princes, the soul of which was the noted Mongolian patriot, Hun Jap Lama. The Princes quickly formulated their demands upon the Chinese for the complete evacuation of the territory subject to the Sait Chultun Beyli. Out of it grew parleys, threats and friction between the various Chinese and Mongolian elements. Wang Tsao-tsun proposed his scheme of settlement, which some of the Mongolian Princes accepted; but Jap Lama at the decisive moment threw the Chinese document to the ground, drew his knife and swore that he would die by his own hand rather than set it as a seal upon this treacherous agreement. As a result the Chinese proposals were rejected and the antagonists began to prepare themselves for the struggle. All the armed Mongols were summoned from Jassaktu Khan, Sain-Noion Khan and the dominion of Jahantsi Lama. The Chinese authorities placed their four machine guns and prepared to defend the fortress. Continuous deliberations were held by both the Chinese and Mongols. Finally, our old acquaintance Tzeren came to me as one of the unconcerned foreigners and handed to me the joint requests of Wang Tsao-tsun and Chultun Beyli to try to pacify the two elements and to work out a fair agreement between them. Similar requests were handed to the representative of an American firm. The following evening we held the first meeting of the arbitrators and the Chinese and Mongolian representatives. It