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226 to cover as collateral the loan to meet the heavy indemnity demanded by Japan. The fact was: Viceroy Li Hung Chang and Chang Chi Tung were at loggerheads and opposed to each other in the conduct of the war. The latter was opposed to peace being negotiated by Li Hung Chang; but the former had the Dowager Empress on his side and was strenuous in his efforts for peace.

Hence Sir Robert Hart had to side with the Court party, and ignored Chang Chi Tung's request for the loan of $15,000,000; on that account the loan fell through, and came near involving me in a suit with the London Banking Syndicate.

I returned to New York and cabled for further instructions from Chang Chi Tung as to what my next step would be. In reply he cabled for me to come to China at once.

After thirteen years of absence from China, I thought that my connections with the Chinese government had been severed for good when I left there in 1883. But it did not appear to be so; another call to return awaited me, this time from a man whom I had never seen, of whose character, disposition and views I was altogether ignorant, except from what I knew from hearsay. But he seemed to know all about me, and