As the funds arrived from China the vessels and stores were purchased. The Admiralty afforded the same facilities from our arsenals as would have been conceded to any other friendly Power. From the superabundant ships in our navy the Emperor of China was allowed to purchase the Mohawk, Africa, and Jasper, and they were re-named respectively the Pekin, China, and Amoy. There being no others available, and the private yards having been swept by the Federals of such vessels as could carry guns or serve for warlike purposes, it became necessary, in spite of the delay it would entail, to enter into contracts for the construction of three other vessels, which will be launched in March. The six vessels—three of them despatch-vessels fit to cope with the stormy seas of the Chinese seaboard, and the other three for river service—form as small a force as it is safe to begin with. It is intended that they shall carry about 40 guns, and be manned by 400 European officers and seamen, of the very best character. During the interval occupied in the building of some of the vessels and equipment of the others, there has been abundant occupation in arranging the details necessary for a sound organisation. A code of laws for the good order and comfort of all, based upon the customs of a European navy, has been compiled, so that Prince Kung’s seal may render it the future naval law of China. The scale of pay, rations, prize-money, and pensions for wounds, has been carefully considered, to meet the requirements of the special service. A signal-book has been adapted for intercommunication; and, strange as it may sound, even an ensign—green ground intersected by two yellow diagonal bands, and bearing the Imperial crest—had to be improvised, inasmuch as in China every armed native vessel flies her own colours according to the whim of her master,—an irregularity to which it is very necessary a stop should be put.