Loschinsky replied to the effect that a destroyer would be kept always ready, and, to ship articles more conveniently, would lie under Electric Cliff. The _Statny_, under Lieutenant Baron Kasinsky, was told off for this. While this took place the Commandant was occupied issuing orders for the defence of the north-eastern front, and it never entered his head that anyone was then thinking out arrangements in case of a surrender. He was not told of the letter sent to Loschinsky, although the latter, in his capacity of Commander of the coast defences, was immediately under him. Meanwhile the assault on Eagle's Nest continued, and about 2.30 p.m. the telephone from it ceased to work. Everyone at the dressing station was busy with his glasses watching the top of the hill, which was shrouded in clouds of bursting shrapnel, when, to our intense surprise, Galitsinsky, the commander of the place, suddenly arrived. 'How? What's happened? Why?' 'I was the last to leave. None of our men are there now.' He looked exhausted, dishevelled, overcome. The staff were much perturbed, for the loss of this important tactical point decided the fate of the north-east front. Any minute the Japanese might force their way along the valley and commence a massacre. Our guns concentrated their fire on the position that a few hours before had been ours; but soon Lieutenant Malchenko could be discerned riding along the road past our position with a large white flag! When he was seen, someone laughingly said: 'Looks as if he were taking our New Year greetings to Nogi.' But he was not armed with empty greetings. Alas! he was taking to Japan an unexpected New Year's gift. He was the bearer of the following letter from General Stössel to General Baron Nogi, dated December, 1904 (no day of the month): 'Being acquainted with the general state of affairs in the theatre of war, I am of opinion that no object is to be gained by further opposition in Port Arthur, and so, to avoid useless loss of life, I am anxious to enter into negotiations for a capitulation. If your Excellency agrees, I would ask you to be so good as to appoint accredited persons to negotiate concerning the terms and arrangements for surrender, and to appoint a spot where they may meet my representatives.' The despatch of the _parlementaire_ had been decided on directly General Fock had brought word of the capture of Eagle's Nest, and Colonel Reuss had been immediately summoned to translate the above letter into English. No meeting of the Council of War was held. There was no attempt made to persuade Stössel to alter his decision to surrender. The Commandant was not even informed of the intention to despatch a _parlementaire_.