The harbor of Honolulu is an ideal one, situated behind a high series of rocks called Diamond Head.

When the Holland came into view of Diamond Head, not a native vessel of any sort was in sight.

"By Jove!" cried Oscar, suddenly. "Look!"

He pointed to the very top of Diamond Head.

From a tall flagpole situated there, floated a large flag of red, black, yellow and blue.

It was the standard used by the Allies!

"The enemy have captured the Islands!" ejaculated Andy.

His words were true.

Just three days before the new Holland reached there, the fleet of warships from Asiatic waters had arrived in front of Honolulu and demanded an immediate and unconditional surrender.

The authorities would not surrender and the three American warships in the harbor, along with the shore forts, had done their best to hold the enemy at bay.