In 1882 the Sawbwa of Möngnai and the chiefs of several neighbouring States revolted against Thebaw and found a safe refuge in Kengtung. Möngnai is one of the most important of the States. It contains nearly three thousand square miles. The River Salween is the boundary on the east, and divides it from Kengtung. It has been already mentioned that a Burman Bo-hmu, or Resident, with an armed force, was stationed in Möngnai, which derived dignity from being the centre of Burmese power in the Shan States, and suffered proportionately. The exactions of the King's Government at last became intolerable. The Sawbwa, Kun Kyi, was summoned, with other defaulters, to Mandalay, and imprisoned there until the sums demanded were paid.

About 1882 Kun Kyi was again summoned to appear. He preferred to revolt. While the Burmese subordinate official (the Resident had just died) was preparing to seize him, he raised his people, led them against the King's garrison, and destroyed it. On the news reaching Mandalay, a large force was dispatched to avenge this outrage, and the Sawbwa, with several other chiefs in like straits, took refuge in Kengtung. One, Twet Nga Lu, with the assistance of the Burmese officials, took possession of Möngnai.

Twet Nga Lu was an unfrocked monk, a native of Kengtawng, a sub-State of Möngnai, who signalized his return to a worldly life by making himself unpleasant to his neighbours. He had made an attack on Möngnai, but was driven off. A younger brother of the Möngnai Sawbwa had married a lady named Nang U, by whom he had a son. Whether this nobleman died, or was dismissed by Nang U, is uncertain. However that may be, she espoused Twet Nga Lu, and thereupon her minor son was appointed by the King to be magistrate of Kengtawng with the unfrocked monk as guardian. This arrangement had taken place before the retirement of the Sawbwa, Kun Kyi, to Kengtung, and was very distasteful to him.

It came about thus, that the Sawbwa of Möngnai, the premier chief in the Shan country with Lawksawk and several others, all suffering from the King's tyranny, found themselves in Kengtung.

Naturally they took counsel together regarding the measures to be adopted for recovering their territories, and protecting the Shans generally against the oppressive rule of Burma. It was resolved to form a confederacy under one leader. Their decision and the reasons for it are stated in a letter addressed by them to Hkun Saing, the Sawbwa of Hsipaw, on the 26th of March, 1886. Referring to a communication which they had received from Hkun Saing, in which he advised that "it would be beneficial to the Shans to have their country welded into a congeries of independent States like Germany," they state their own views in the form of resolutions, declaring that there is no hope of establishing peace or putting an end to the endless strife between the States, unless they are united under one suzerain. They consider that the interests of their religion and of the country generally demand the selection of a supreme ruler, who will combine the Sawbwas and enable them to withstand any attempt to injure them or their religion.

Acting on these principles they decided in 1885, before the British Government had moved against King Thebaw, to invite the Limbin Prince, one of the Royal Family who was living in British Burma as a refugee on a small pension allotted to him by the British Government, to come up to Kengtung and to accept the position of Suzerain of the Shan States, with the object of "wresting the crown from King Thebaw." The Prince accepted the call, and arrived at Kengtung on December 10, 1885. On his arrival, forces were raised from Kengtung and the other confederating States, and advance parties were sent forward under the command of the Sawbwas of Möngnawng, Möngnai, and Lawksawk.

The States joining in this enterprise under the nominal leadership of the Limbin Prince—a poor creature quite unable to lead any one—became known as the Limbin Confederacy. A counter league was formed by all those interested in keeping the exiled Sawbwas out of their territories and maintaining the existing state of things. On the other hand, the Sawbwas of Möngpawn and several other influential Sawbwas espoused the cause of the Confederacy. Twet Nga Lu was the leading spirit of the counter league, and he directed its forces against the States which were allied to Möngnai. He was met and defeated by Möngpawn, and early in the year 1886 Kun Kyi, the Sawbwa of Möngnai, and his companions in exile had expelled the usurpers and recovered their territories. The Confederacy then set themselves to induce or compel other States to join them and to acknowledge the suzerainty of the Limbin Prince. Saw Ôn, the de facto ruler of Yawnghwè, rejected their invitation. The Confederacy determined to move from Möngnai against him, as it was important to force Yawnghwè, the State adjoining Möngnai on the west, and the most powerful in the Central, or Myélat, Division, to give its adherence to the Prince.

The foregoing outline will perhaps suffice to make the situation at and immediately following the annexation intelligible.

The danger-points appeared to the Chief Commissioner to be the critical situations of the two Sawbwas, who had signified their adherence to the British Government, namely, Hsipaw in the north and Yawnghwè in the central portion of the States. Hsipaw and his ally, San Ton Hon, were pressed by the coalition under Naw Hpa, Naw Möng, and Prince Saw Yan Naing—another scion of Royalty who with his brother had raised their standard at Chaunggwa, in the Ava district, and after being driven out of that had eventually joined Naw Möng in Hsenwi. Yawnghwè was threatened by the powerful Limbin Confederacy, and had no prospect of help from any neighbouring State. Both these Sawbwas had declared themselves to be friends of the British Government, and at the time they were our only adherents.

The deputation of Mr. Herbert White to Hsumhsai in 1886 has already been mentioned. He succeeded in opening the trade route between Hsipaw and Mandalay and in strengthening the position of the Sawbwa Hkun Saing. Accordingly, when Sir Charles Bernard came to Mandalay at the end of 1886, Hkun Saing was able to hasten down to meet him, and to make in person his submission to the British Government. He was received with much ceremony by the Chief Commissioner. His loyalty to the Queen-Empress and belief in her power were not open to doubt. On his return journey from Mandalay in February, 1887, Mr. J. E. Bridges, the Deputy Commissioner, with a small military escort and some officers of the Survey and Intelligence Departments, accompanied the Sawbwa to Hsipaw. Mr. Bridges remained there twenty-five days, gathering information regarding Shan politics and the country generally, and opening communications with other States. He came to the conclusion that the Shan chiefs were little disposed to welcome the advent of British power. Hkun Saing, the Sawbwa of Hsipaw, stood out alone as our friend. The party under the flag of the Chaunggwa Prince, which was striving to eject San Ton Hon from Hsenwi, was equally hostile to Hsipaw. Much of the country had been ravaged by the Myinzaing Prince and his adherents. His view was needlessly despondent.