Japan is now divided into six military districts, while the seas around it are divided into five parts, each having its own chief station in contemplation. The Government are now contemplating establishing a strong naval station at Mororan in Hokkukaido, for the defence of the district and also the shore of the northern part of the mainland, especially of the Tsugaru Strait. The strait of Shimonoseki also has been fortified and garrisoned on both sides, and has close communication from the Kure naval station, and with Hiroshima, and Osaka. Railway communication has also made great strides during the last few years, and rapid transit has consequently greatly improved throughout the empire. If the Kiushiu, the Loo Choo, and the Miyako Islands are well looked after by the Japanese fleet from the Sasebo naval station, then Japan would be able to sever the communication between Vancouver’s Islands and Port Hamilton, and also between the former place and Hong Kong to a certain extent. The San-Francisco-Hong Kong route would be injured, and Shanghai-Port-Hamilton line would be threatened. Without doubt _Japan is the Key of the Pacific_. Reviewing the discussion, we find that Port Hamilton is rather useless with regard to the Japan Sea and the Canadian Pacific railway road without a Japanese alliance, but it would be of immense importance in withstanding a Russian attack on the British interests from the Yellow Sea through Mongolia or Manchooria. It is also an excellent position for any offensive attack upon China in case of war breaking out. The British occupation of Port Hamilton was very galling to the Chinese nation, in fact, quite as disagreeable as the occupation of Malta and Corsica was to Italy, and the annexing of the Channel Islands and Heligoland to France and Germany. It has therefore somewhat shaken the Anglo-Chinese alliance. A Chinese alliance, however, is of far greater importance for English interests than the occupation of Port Hamilton. If relations became strained a severe blow would be dealt to English trade and commerce in that part. The main portion of the commercial trade of China is with the United Kingdom and her colonies; for instance, in 1887, the imports of China from Great Britain, Hong Kong, and India amounted to about 89,000,000 tael, while the exports to the same countries were 48,000,000 tael. It is hardly possible to find two countries more closely connected by trade than England and China.[8] The Hamilton scheme was wisely abandoned in 1887, and the English Government obtained a written guarantee from China against a Russian occupation in future years.