On the 17th the reply of the British Foreign Office was sent by Mr. Balfour, as follows: "With reference to your telegram of the 13th instant, inform Yamên that they must assent to your proposal Number 2 without delay, omitting from it the Shankaikuan-Newchwang Railway, which we must deal with as a separate question. You are authorized to inform them, if you have any reason to apprehend that they will delay compliance, that, unless they agree at once, we shall regard their breach of faith concerning the Peking-Hankow Railway as an act of deliberate hostility against this country, and shall act accordingly. After consultation with the Admiral, you may give them the number of days or hours you think proper within which to send their reply. The delay should not be of too long duration. It should be noted, on face of your demand, that Chingkiang Concession is for Americans and Germans, if they desire a share, as well as ourselves. Also make it clear that your ultimatum has nothing to do with the line to Newchwang." The tone of these demands made them effectual. On the 4th of September, Sir Claude MacDonald was able to announce to his superiors, in London: "At an interview which I had with them yesterday, the Yamên entered into the following undertaking:—Within the next few days they will address a despatch to me, apologising for their action, and consenting to the construction of the following lines by British Syndicates: 1. A. line from Shanghae to Nanking with a continuation viâ Chinkiang to Sui Yang. They said, however, that the latter route was that followed by the line from Tien-tsin to Chinkiang, for which they said that a Preliminary Agreement had been signed between Yung Wing and the Anglo-American Syndicate; and the continuation in question must be dependent on the cancellation of that Agreement. 2. A line connecting Hangchow and Soochow with Shanghae, to be continued if required to Ningpo. 3. A line from Canton to Kowloon. 4. The Peking Syndicate to be entitled to construct a railway to convey minerals from their mines to the Yang-tsze. The Yamên have also agreed to send me a Confidential note embodying a declaration that the terms accorded for the construction of these lines will not be inferior to those granted for the construction of any railways in China proper. The Manchurian lines are excluded from the scope of this Agreement. I venture to think that this is a satisfactory settlement. I did not give them an ultimatum, confining myself to a warning of the grave consequences which would now attend any failure on their part to keep their word. The fact that the fleet is concentrating is, of course, known to them." Before receiving this announcement, Mr. Balfour had cabled, on the 24th of August: