Canton the impregnable had been taken, and was in the military occupation of the allied forces; Yeh, the Terror of Barbarians, was a captive beyond the seas; so completely was all resistance crushed, that it was found possible to raise the blockade of the Canton River, and to let trade return to its usual channels. Still nothing was achieved so long as the Emperor remained aloof, and could represent the affair as a local disturbance not affecting the imperial power. To any permanent settlement it was essential that he should be a party; the next step, therefore, was to move northwards to Shanghae, and there open direct negotiations with the Court of Pekin; and, for the success of these negotiations, it was obviously of great importance that the envoys of England and France should have the co- operation of the representatives of Russia and the United States. _February 4th._--Still no letters. To-morrow, Frederick is to go to Macao, to take to Messrs. Reed and Putiatine copies of all my diplomatic correspondence with Yeh, &c., and an invitation to each that he will join us in an attempt to settle matters by negotiation at Shanghae. It is the commencement of the third act in this Chinese affair. _February 6th._--I have a letter from Mr. Reed, saying that he is going to the North this day, so that perhaps Frederick will not find him. This would be a great disappointment. _Sunday, February 7th._--A month without news is very long to wait. Perhaps time passes a little more quickly than when one was dawdling and doing nothing at Hong-Kong; but still this life is tiresome enough. I do not suppose that there ever was a town of the same extent, or a population of the same number, more utterly uninteresting than the town and population of Canton--low houses, narrow streets, temples containing some hideous idols, which are not apparently in the least venerated by their own worshippers. The only other resource is the curiosity shops, and, as you know, I have not the genius for making collections. _February 9th._--Things have taken a better turn. F. by steaming at night from Macao to Hong-Kong caught Reed about an hour before that fixed for his departure for the North. He was delighted with my communication, and has written undertaking to co-operate cordially with us. This is, I think, a very great diplomatic triumph, because it not only smooths the way for future proceedings, but it greatly relieves our anxiety about Canton, as the Americans are the only people who would be likely to give us trouble during the military occupation.