Hang-Chow, the provincial capital, was carried by assault upon the 29th of December. The Chinese part of the garrison, unable to endure the horrors of the close siege, after everything in the shape of food had been consumed, and even human flesh exposed for sale in the market-place, opened the gates of the outer city and surrendered to the Ti-pings. The Manchoo troops defended themselves to the last, neither giving nor accepting quarter, and when the walls of the inner city were carried by the victorious insurgents, the Tartar general, Luy, and a number of his men, sprang a mine and blew themselves up with their citadel.

The capture of this important city and of the treaty port Ningpo having placed the Ti-pings in possession of the whole Che-kiang province, with the exception of Shanghae and a few miles around it, they resolved, upon the termination of the year, as previously agreed to, to follow up the enemy to this last stronghold.

Although, before his unsuccessful trip to Nankin, Admiral Hope had seemed willing to treat with the Ti-pings, when he returned to Shanghae, after finding it impossible to again deceive them, his conduct underwent a marked change, as evinced by the eager way in which he sought the opportunity to indulge his warlike propensities. This opportunity was soon afforded him.

Immediately upon the expiration of the year, Chung-wang, the Ti-ping Commander-in-Chief, moved an army towards Shanghae. No attack was made upon the city, but this force gradually occupied every position in the neighbourhood, till at length not an Imperialist soldier remained beyond gunshot range of its walls. The Ti-pings again manifested their extraordinary friendliness towards foreigners by not attacking the city, and with similar forbearance and moderation to that evinced upon their approach in 1860, endeavouring to open peaceable negotiation with the foreign authorities. The leaders of the different corps d'armée sent in the usual nobly worded proclamations, relating to the oppression of the Manchoo and their own mission to free and Christianize China; the success hitherto vouchsafed to their cause by the "Heavenly Father"; the earnest desire to enter into friendly relations with the "foreign brethren"; their wish to continue all present trade and to open the whole country up, &c.

Now, at this time the political position of England with regard to the rebellion was as follows. By the written guarantee of Sir George Bonham, by that of Admiral Hope, by that from the British representative at Ningpo, and by many other acts, her national honour was pledged to maintain a strict neutrality. The last orders to her officials in China were, as already quoted:—

"Her Majesty's Government desire to maintain ... neutrality between the two contending parties;" save British subjects from punishment, "but otherwise you should abstain from all interference in the civil war."

[Dated, Foreign Office, August 8, 1861.]

This was the standing order; the only later direction being Lord Russell's suggestion: "But it might be expedient to defend the treaty ports if the Chinese would consent not to use those ports for purposes of aggression."

The way the British Consul, Admiral, and General, at Shanghae, abstained from all interference was by converting that city into the grand rendezvous of the Imperialist forces, and then helping them to defend the Chinese city by garrisoning it with British troops; by conveying Manchoo soldiery down the Yang-tze to Shanghae in English steamers; by supplying the Imperialists with artillery, &c., while strictly prohibiting any trade in the same articles with the other of the two "contending parties"; and by attacking the Ti-pings when they found that the Ti-pings would not attack them. That useful triumvirate—the sailor, the soldier, and the diplomatist—placed the following construction upon Lord Russell's ambiguous ifs and ands. "It might be expedient," they singularly understood to mean, it was expedient; and "if the Chinese, &c.," they converted into assisting and joining the Chinese "to use those ports for purposes of aggression." Consequently, in direct violation of their public orders, but in conformity with the conduct I have just stated, they issued the following reply to the friendly overtures of the Ti-ping chiefs:—

"Whereas we, the Commanders of the French and British forces now occupying the city and environs of Shanghae, have received letters from Lion and Ho, persons styling themselves ..., informing us that said Lion and Ho are intending to attack and occupy Shanghae; and whereas we have no means of communicating with the said Lion and Ho, or any of their people:—Therefore, this is to give notice to whomsoever it may concern, that Shanghae city and its environs, Woo-sung included, are at present in the possession of the troops under our respective commands, and that if Lion or Ho, or any persons claiming fraternity with them, attempt to attack these places they will do so at their peril."