Hondo, a powerful Asiatic State, had suddenly made war on the Associated Republic of America. The navy of the latter had been concentrated on the Pacific coast, but the points raised in the dispute seemed to have been satisfactorily settled. Then the wily Asiatics struck suddenly and struck hard. The Associated Republic's combined squadrons ran full tilt into a mine-field laid off the Mexican coast, Eight of their battleships, four battle-cruisers, and numerous smaller craft were destroyed, and in the confusion that ensued the Hondese submarines followed up the blow by torpedoing another half-dozen big ships. The remainder scattered, some running for the Panama Canal, others making for San Paulo. The latter place was bombarded by Hondese battleships and aircraft, while other aircraft had played havoc with the Pacific ports of the Republic. Already the Associated Republican Government had applied to Great Britain for aid. The latest report stated that Great Britain was unable to render assistance, owing to the pressing claims upon her limited navy; but she suggested a conference--a conference, when the Hondese were actively hammering upon the Pacific gate of the Associated Republic! Having communicated this startling information, the Captain ordered "Pipe down" and the crew dispersed to their various stations to discuss and argue further about the matter. The general opinion amongst the officers was that the Associated Republic's predicament was Britain's opportunity, as far as Rioguay was concerned. The Monroe Doctrine would become a "wash out". There was nothing to prevent the British admiral sending an ultimatum to the Republic of San Benito demanding right of way through her territorial waters to precisely the same extent as the Rioguayan Republic enjoyed it. This demand was sent. San Benito acquiesced in a very chastened mood. She had read and accepted the lesson of the Writing on the Wall. Meanwhile, oil-tankers had replenished the fuel supply of the British warships. The _Egmont_ and _Edgcumbe_, battle-cruisers, had arrived hot-foot from Malta, and the fleet was now ready to bring President Jaime Samuda to heel. On the evening before the day fixed for the fleet to ascend the river and attack the batteries and naval port of San Antonio, Peter was keeping middle watch. All around, in steadily increasing numbers, lay the fleet, silent and vigilant. Not a light was visible, save when a masthead signal lamp winked its message either to or from the "flag". Even the searchlights were screened, since the navigable channel well above the anchorage had been heavily mined against the chance of a surprise attack by hostile submarines. As for the Rioguayan destroyers, these were ruled out of count. Their experience during the battle had so shaken the _moral_ of both officers and men, that they absolutely refused to come out, and had in consequence been ordered by President Jaime Samuda to form a shore-defence corps.