On the 17th the Hong merchants, the Linguists, and the Compradores (except our own) were summoned to an audience of the 'Kin-Chae.' They obeyed it with fear and trembling. The object was to ascertain who, amongst the foreigners duly registered as occupying the Factories, and whose names had been forwarded to Pekin eighteen months before, were still present and in the opium 'business.' Russell & Co. not having been included, our Compradore was not 'invited,' at which he appeared particularly delighted. On the 18th the Kin-Chae sent for the Hong merchants. They were charged with having connived at the opium trade, and his Excellency threatened to strangle some of them if it was not _instantly_ put a stop to! They were also accused of allowing foreign dealers in 'smoke' to reside in their Factories, and were very much frightened, as one of them said, 'No hav see so fashion before.' Forthwith they met in 'Consoo' to deliberate, and remained until late in the night. On the same day the first edict from the 'Kin-Chae' to foreigners was issued. It ordered all Opium held by them to be surrendered, and that they should sign bonds to discontinue the trade, 'under penalty of death.' It became very clear that his Excellency was not to be trifled with. On the 19th, Messrs. Matheson, Dent, Green, Wetmore, Dadabhoy Rustomjee, and Daniell met the Hong merchants at the Consoo House, and were informed by them verbally of the commands of the 'Kin-Chae,' which were a repetition of the foregoing, with the addition that the opium was to be destroyed. Moreover, if his Excellency's orders were not complied with, the consequences would be serious. There were at this time 15,000 chests on board of the 'receiving ships' at Lintin, and 5,000 chests at the coast stations, and the cost of all over $12,000,000.