A new town has grown up on the opposite side to satisfy the demands of trade. This is called Dalny, and is situated on the bay of Talienwan, to the north-west of Port Arthur. The territory, like that of Port Arthur, was given in lease by China, and it is intended to make this into a free port connected by the Manchurian Railway with Vladivostok, Moscow, the Black Sea, and the Baltic. It might in time become the great commercial centre of the extreme East. The port is about six miles long and very deep, and offers exceptional facilities for navigation. Dalny in its present condition has a somewhat paradoxical aspect. Palaces emerge from the sands, public monuments fill the deserted squares, avenues and boulevards are traced out on the shore. Dalny is the hope of the partisans of Russian commerce and progress, while Port Arthur is the pride of the military party. The development of the former is encouraged by the energetic efforts of Mr. White; the latter finds a powerful protector in General Kuropatkin. [Illustration: GENERAL KUROPATKIN To face page 124] Port Arthur impressed me greatly on account of its strategic importance, but what I saw of Dalny did not inspire me with much confidence as to its commercial future. During my visit I saw all that has been accomplished since 1898, and certainly, although many things are still far from perfect, and the mistakes made are very palpable even to the uninitiated, one cannot fail to recognize that much has been done in so short a time. But if we knew at what cost all this has been accomplished, our admiration would probably be considerably reduced. No boat for Taku was likely to start for some time, so I decided to continue my journey to Pekin by rail. As far as Ying-tse we travelled over the main Manchurian line, whence a branch line runs to Niu-chwang. This is the most northerly port of the Yellow Empire open to foreign trade. It is situated at a distance of thirteen miles from the mouth of the river Liao, which discharges into the gulf of Liaotung, a continuation of the gulf of Pechili. The railway line, which brings Niu-chwang into direct communication with Siberia and Pekin, was just finished. Branch lines in the direction of Tien-tsin had existed before this, but they were destroyed in the late Boxer troubles. To give my readers a somewhat accurate idea of the importance of this town I will try to quote from the Official journals:--