"Since the 4th of February," he wrote. "I have had four interviews with the Yamên for the purpose of extracting some concessions in return for the rejection of the offer of a guaranteed loan from Great Britain after it had in principle been accepted. At the first of these, on the 5th February, the Yamên refused to recognize that we had any claim to compensation, declaring that the refusal of a Russian as well as a British guarantee left no ground for complaint. I told them that this argument might have had some plausibility if the two offers had been equally advantageous, or if the Chinese Government had not committed themselves to serious negotiations with us. The British Government had at China's own request reluctantly agreed to do her a very exceptional favour, and the Yamên could not suppose that we should accept with equanimity a brusque intimation that the Chinese Government had changed its mind. "The Yamên abounded in protestations of their readiness at some future date to give proofs of their gratitude to Great Britain in the shape of encouragement to commerce, but they insisted that the loan negotiations must first be dismissed, and all demands for compensation in connection with them dropped. I refused to telegraph such a suggestion to your Lordship, and as after long debate they still refused to bind themselves by any promises, I reminded them that at an earlier interview they had asked me whether the action threatened by Great Britain in the event of their accepting a Russian guarantee would equally be taken if they borrowed from neither Power. I could not at the time answer the question, but I could now tell them that Her Majesty's Government had a right to feel deeply affronted by what had occurred, and I would not be answerable for the consequences if they declined to make to Great Britain even such concessions as they had frequently admitted to be in China's own interests. "The Yamên begged me to smooth matters for them, to which I answered that their present attitude made it impossible for me to do so. Let them permit me to report that China was ready to open inland navigation to steamers; to establish Treaty ports at Nanning and Hsiang T'an; and to give reasonable security to trade by a pledge against alienation of the Yang-tsze region to another Power, and the rejection of our loan might be forgiven. All these were matters within the Yamên's power.