In the centre of the town were some very good houses belonging to the wealthier residents, and at the upper end the Chinese—who formed, as they do now, a large and important class of the inhabitants—had their quarters and their temple. Most of the trade in jade and rubber was in their hands, and their houses were as uncleanly here as in other towns of Burma. One of their chief employments was the manufacture of arrack, which they sold to the town's-people. The shops in their quarter reeked of it. Whatever the Indian Temperance Society may think, we cannot be accused of introducing alcohol or the vice of drunkenness into these regions. Orders were at once issued against selling liquor to the British soldiers. These orders were treated with indifference until a Chinaman was caught in the act. He was promptly flogged, and there were no more cases of the kind. Another race found at Mogaung was the cross-breeds between Chinese and Shans. "We noticed," says Major Adamson (short account, p. 27), "very many Chinese Shans.... They are strange, wild-looking people, as a rule rather short in size, but often strong and wiry. They are invariably dressed in a blue cotton jacket and loose blue Chinese trousers, and they wear their hair in a sort of long tail behind, more or less after the fashion of Chinese. They are each armed with a long sword, and as a rule each carries a bag, in which he keeps his eating utensils, food, and blanket."

In the river in front of Mogaung is an island, where the boats which bring jade and rubber from the north, and all sorts of miscellaneous merchandise from Bhamo, were moored. A small bamboo bridge gave connection with the mainland. "The island is looked upon as a place of safety in the event of the Kachins attacking the town. Many of the villagers keep their valuables in boats for protection, and some women and children go nightly to sleep in the boats, where they consider they are safer than in their houses (ibid., p. 28)."

It was Major Adamson's duty to get into touch with the people, and procure the necessary intelligence concerning local politics and conditions. There was a man of influence in the town called Shwè Gya, who had been appointed by Major Cooke to be the nakan, or deputy, when Maung Kala was recognized as Myo-ôk. He could not get on with Po Saw when that person succeeded to power, and retired into private life. Shwè Gya was a man of some note and of strong individuality. He was a cross-breed between a Kachin father and an Assamese mother. But he had adopted the dress, habits, and religion of the Burmese Shans. He had been a soldier at one time, and understood Kachin tactics well. Being able to appreciate the power of the English, he threw in his lot with them. This man Major Adamson took into his confidence, and found him most useful and most loyal.

It was necessary for Adamson to be open to all comers and at all times. As this was not possible within the camp, he moved his quarters to a rest-house in the town, taking a small British guard for his protection. On Sunday, the 15th, his mind was relieved by learning that Po Saw had returned. A Durbar was arranged, to which all the notables were summoned. The officers of the force being present, Major Adamson received Po Saw formally, and after explaining the objects of the expedition and the general policy of the British Government, namely the establishment of peace and the encouragement of trade, he censured the Myo-ôk for his conduct, and called on him to explain it. Po Saw alleged that fear of being called to account for Lon Pein's murder had been the reason of his flight. Major Adamson accepted the excuse, and restored him to office. At the same time he assured the people that no one should be prosecuted for offences against the British Government committed before the arrival of the expedition, except those who had been parties to the murder of the Chinaman.

O'Donnell and his police, who had fallen behind the column owing to the boats with their supplies having been delayed, had now arrived, and the work of building a fort for their occupation was begun. A site was chosen on a piece of ground in the middle of the town, bounded on one side by the river, of which the banks were very steep and formed a natural defence, leaving the other sides to be protected by palisades.

The mornings now were very cold and foggy, the thermometer falling to 45° or 50°. About nine o'clock the fog cleared off, and the climate was delightful. The soldiers were naturally eager to move. They were eating up their stores, and if the Kachins meant mischief the less time they had to prepare it, the better. A council of war was held. Major Adamson wished to wait until the Kachins had had time to arrive. His instructions were to avoid hostilities with the Kachin chiefs if possible. Po Saw had not summoned them to meet him as he had been ordered; the letters from the British Representative were only now reaching them. The Chinese, through Mr. Warry, also strongly urged delay. Moreover, nothing was yet known about the road to the jade-mines; and as it was found that, contrary to expectation, paddy for the transport animals could be procured from the villages in the neighbourhood, the arguments against delay lost some of their force. The council decided, after discussion, to halt for ten days.

During the next few days the chief work was the collection of materials for the fort and its construction, which was rapidly pushed on by Captain O'Donnell. Houses were also put in hand for the officers who were to remain in Mogaung, namely the Commandant of military police, the Assistant Commissioner, and a surgeon. Surveys were made of the neighbouring country, information about the roads and villages collected, and in short every preparation made for the advance.

On the 22nd of January, Shwè Gya reported to Major Adamson that the Myo-ôk Po Saw had disappeared once more. His conduct since his reinstatement had not been good. It was decided to capture him if possible, and keep him a prisoner. He was reported to be in a village about five miles away. Taking fifty men and some mounted police, under the command of Captain Armstrong, of the Cheshire Regiment, Adamson descended on the village, surrounded it, and searched every house. There was no trace of Po Saw; but a man known to be in his service, and another who was recognized to be Bo Ti, his right-hand man, were made prisoners.

The final disappearance of Po Saw upset Major Adamson's plans. It was idle to expect that the influential Kachin chiefs would now come in. It was necessary to appoint a man to carry on the duties of the Myo-ôk. Shwè Gya was the best man, but he was not a Shan and the people would not have accepted him. With the consent of the townsfolk another member of Maung Kala's family was chosen and placed in authority, with Shwè Gya as the deputy and real working man. All this was done in public, and explained to the people. At this time some letters of a friendly tone came in, with presents from some Kachin chiefs whose hills were on the road to the jade-mines.

The time had come now for an advance. The fort was ready for occupation, and was defended by a substantial bamboo palisade, Captain O'Donnell, with all his police except a detachment of seventy-five, who formed part of the expeditionary force, were left to garrison it. Mr. Twomey, Assistant Commissioner, was placed in administrative charge, and orders were left for the despatch of Bo Ti and the other prisoner to Bhamo. On the 26th of January the march began. The troops forming the column under Captain Triscott's command were:—