In 1902 a special Committee sat, by order of the Officer Commanding the District, in order to work out a defence scheme for the district and for Port Arthur itself. After inspections of the ground, carried out in 1902 and 1903, this Committee decided to allot artillery units to the following places:

(a) Yinchow: some fortress artillery, in the old Chinese fort at the mouth of the Liao-ho, to protect the entrance.

(b) Dalny and Talienwan: some field batteries, to protect the mine fields in Talienwan Bay.

(c) Kinchou: twelve batteries, to check the enemy's invasion of the peninsula through the narrow neck between Khinoeze (Hand) and Kinchou Bays.

The advanced positions of Nangalin and Wolf's Hills were noted for field batteries. Plans were made for artillery emplacements immediately in front of the Fortress on Pan-lun-shan ridge, on the height near the temple of Miaosan.

On General Biely's recommendation it was proposed to supplement our own artillery by the following guns, taken by us from the Chinese in 1900: One 28-centimetre,[51] two 24-centimetre, two 21-centimetre, four 120-millimetre, two 150-millimetre, twenty-eight 87-millimetre, more than twenty 75-millimetre, and ten 57-millimetre. We had enough ammunition, spare parts, and gear to render the greater part of these guns useful, and work upon their repair and preparation was started. For the 120-millimetre, 87-millimetre, and 57-millimetre, a supplementary order for shells, fuses, etc., was in 1903 placed in Germany (with Krupp). However, when war broke out some of these guns were not ready owing to deficiency in accessories, etc., and so were not mounted in position, but were placed in reserve; but the 87- and 75-millimetre guns for Talienwan Bay and the Kinchou position were allotted.

General Biely, foreseeing that an enemy, by taking up a position with their ships behind Liao-tieh-shan, would be able to shell the harbour and town with impunity, suggested that one 28-centimetre and two 24-centimetre Chinese guns should be mounted on the top of that hill. This was not agreed to by the Committee, as they considered such an operation by the Japanese fleet to be improbable, and because they were alarmed at the difficulty and cost of the proposal. Similarly, the Committee rejected his recommendation for mounting these guns elsewhere on the shore front—for instance—in the group of batteries on Cross Hill.

Later, after the outbreak of war, the Viceroy gave orders that a 28-centimetre gun should be mounted on the Kinchou position; but this was not done, as it was not ready up to the time we abandoned this position. As will be seen later, this gun, as well as others, were afterwards got up into position on Liao-tieh-shan and Cross Hill.

In 1902 also, as soon as the scale of armament had been settled, General Biely laid great stress upon the early provision of a proper fortress-telephone system, of observation stations, of accurate maps of the neighbouring ground, and of all the apparatus necessary for accurate shooting and fire observation; but, from various causes not under his control, matters hung fire till the end of 1903, when authority was obtained to raise the required sum by selling a quantity of the Chinese artillery. Orders were then at once placed with Krupp, Kunst and Albers, and others, for such articles as could not be procured in Arthur, whilst other material, such as telephones, wire, insulators, etc., were bought locally. By the time war broke out this material had not arrived, which prevented the installation of a new telephone system.

The destruction of our fleet had naturally not been anticipated in the original defence scheme; and the idea of mounting naval guns on shore to supplement the land armament only took shape after the Cesarevitch, Retvisan, and Pallada were damaged on the night of February 8, 1904, and thus condemned to a prolonged inactivity. The first proposal was to mount four of the Retvisan's 6-inch Canet guns on Liao-tieh-shan, where, since the middle of March, two 6-inch (68 cwt.) fortress guns had been in position. The arming of this hill had been shown to be necessary when the enemy's ships from behind it shelled Tiger's Tail Peninsula, and our ships in the western basin on March 10, 22, 23, and April 15. After these guns had been mounted and high-angle fire from our ships in the western basin had been started, the enemy's fleet ceased this bombardment. The armament of the Fortress was naturally much strengthened by the addition of these guns.