Prince Ching asked me how I thought trade and commerce could be better protected that it was at present.

I replied that the only effective method would be thoroughly to reorganise the Chinese army, abolishing the system of maintaining provincial armies; that, as Great Britain had 64 per cent. of the whole foreign trade of China, she was naturally anxious as to its adequate security; and that it was possible that the British Government would allow a British officer to assist the Chinese in putting their army in order; adding that I had no official authority whatever to make the statement, but merely put it forward as a suggestion. I also suggested that should the Chinese Government consider the proposal, it might be well for them to invite other nations which had large trading interests with China, to lend a few officers and non-commissioned officers to work with the British in the reorganisation of the army.

Prince Ching observed that they already had German officers to drill some of their troops; and that Captain Lang, the British naval officer, was in the Chinese service to help them to organise their Fleet. He did not mention, however, what I afterwards discovered, that Captain Lang had found the admiral sitting on the quarter-deck playing fan-tan with his own sentry. Captain Lang subsequently resigned his appointment.

When Prince Ching and some members of the Tsung-li Yamen returned my visit, Prince Ching informed me that the Emperor and the Empress Dowager approved of my suggestions; and that his Excellency Chung Chi Tung, Viceroy of Hunan and Hupeh, had been ordered to have 2000 of his troops ready to be placed under a British officer for drill and organisation, as an experiment, which might possibly lead to the reorganisation of the army as a whole. I replied that as I was in no way authorised to take any responsibility with regard to this matter, any action taken on the part of the Tsung-ii Yamen must go through the British Minister to the British Government. Prince Ching said that it was the intention of the Tsung-li Yamen formally to inform Sir Claude Macdonald of the wishes of the Chinese Government.

My interpreter on these occasions was Mr. Fulford of the British Legation, and all that passed between myself and the high Chinese officials in Pekin was made known by Mr. Fulford to the British Minister.

The question of providing adequate security for British subjects and for British trade and commerce, was thus frankly raised at the beginning. Indeed, all hinged upon its solution. The safety of life and property always depends ultimately upon disciplined force. The force at the disposal of the Chinese Government was scattered, ill-organised and largely inefficient. But, with the men, money and resources actually available, it would have been perfectly feasible to have formed an army of a million men. Such was my view at the time, and I have seen no reason to change it since.

At the request of the Tsung-li Yamen, I drew up the entire scheme complete in every detail for the organisation of the Chinese army; and on several occasions it was discussed with me by the Chinese Ministers at great length.

Briefly described, my scheme was based upon the principle upon which the Imperial Maritime Customs had been formed. The Imperial Maritime Customs was charged with the duty of collecting Custom House dues, which were hypothecated to secure the external indebtedness of China. All nations were represented upon it, and, because Great Britain possessed by far the larger share of Chinese trade, a British officer was placed at its head. The business was impartially managed under the Chinese Government for the common welfare of China and of other nations; and in the result the arrangement worked admirably.

The proposal was, then, to organise the army upon the same basis; appointing officers of those nations who owned interests in China; and, as Great Britain possessed the largest interests, placing a British officer in command under the Chinese Government. Under these conditions, the army would be enabled to secure China both against foreign aggression and internal disturbance. In a word, it would ensure stable government. Under existing conditions, stable government was impossible; for the methods of the Empress Dowager consisted in playing off one party against another, and one viceroy against another. Tsu Hsi succeeded in maintaining her personal ascendancy; but at the cost of so weakening the State, that it was liable to fall a prey to foreign ambition and foreign cupidity.