"DEAR COMMANDER HELSTON,—Perhaps you remember saving my life at Cheefoo many years ago? Now perhaps I can do you a good turn.

"For the last three or four years there has been a very large number of steamers, ships, and junks employed on the coast trade which have left port under favourable circumstances and apparently in good condition, yet have never been heard of since. The number has rapidly become so great, that myself and several friends interested in the shipping trade have suspected that these disappearances were not due to natural causes. This year, for instance, three of our newest steamers have left Nagasaki full of valuable cargo, and, though none of them could have experienced bad weather, yet none have been heard of since. All three, strangely enough, carried a large quantity of military stores for Pekin, which had been transhipped from German steamers, and all three left within three weeks. The captains were Englishmen—very good men, too—and what adds to the peculiarity of their disappearance is, that the captain of the English mail-steamer which followed the last out of harbour, and should have passed her eight hours later if she had been on her proper course, never sighted her. We searched the coast ineffectually for any trace of wreckage, and it is only within the last two months that we have obtained a clue.

"One of our large junks from Formosa, being short of water, made for an island, previously reported as being only occasionally inhabited by Korean fishermen. A few men went ashore to fill the casks, found the fishing-nets deserted and no water, so followed a path leading inland and winding up a hill. When nearly at the top they came across four dead Chinamen hanging from trees, and although very frightened, they still pushed on until they came in sight of the natural harbour on the other side of the island. They swear solemnly that, lying at anchor, they saw twenty or thirty steamers and several men-of-war, and that on shore there were many storehouses (go-downs) and huts, and a very large number of natives. They were just going down for water when one of these men, who fortunately had formerly been one of the crew of the Tslai-ming, our crack steamer, recognized her lying there. He is a cute fellow, and at once jumped to the conclusion that these were pirates (you remember how terribly frightened they are of 'pilons'?), and ran back with his fellows to their boat.

"They brought this news to us.

"Four years ago, when this island was last visited, it was reported as uninhabited. Personally I did not doubt the men's tale. In fact, they are so frightened, and have spread their story so freely, that it is difficult to get a crew together for any port south of Amoy.

"I have made very careful enquiries to account for the presence of the men-of-war, and have discovered that many of the war-ships, and nearly all the torpedo-boats which were run ashore to escape capture during the late war, had disappeared.

"The local mandarins and officials of course know nothing, but from the natives living near I find that large ships came and stayed near the stranded ships for some weeks, and finally towed them away. There is no doubt that two, if not three, cruisers in bad plight have been sold to a couple of Europeans, and have disappeared, where, no one knows. A couple of the Yangtze corvettes have also mysteriously vanished.

"I memorialized the throne, but they would do nothing, and made fun of my report. The mandarins got hold of my informants, tortured them till they denied the truth of their story, and then of course laughed at me.

"Trade was practically at a stand-still, so we decided to send one of our best captains, an Englishman, to see if the men's story was correct. He landed at night from a junk, disguised as a native, and spent a day on the island, running great risks of detection, and being taken off next night. He reports that there are certainly three cruisers and seven torpedo-boats anchored there, and at least twenty coasting steamers, among them being the three that disappeared when laden with military stores. Great numbers of coolies were working at the narrow entrance to the harbour, and, as far as he could see, they were mounting guns behind earthworks. He thought he could distinguish some Europeans, but is not certain. He brought a rough plan of the harbour, marking the positions of ships, buildings, and guns.

"I decided to take him next day to some of the ministers whom I knew personally, thinking that they would pay more attention to the word of an Englishman. I must tell you that the three natives who first brought the news and were tortured to deny it, have disappeared, and as they were very honest, faithful men, I suspected some underhanded dealing, and, thinking to keep the Englishman safe made him sleep in my yamen that night. Next morning he had disappeared, and his body was found two days later in a low quarter of the town, stripped of all valuables including the plan, which he had in his pocket-book, although this itself was not taken. The gatekeeper saw him go out, and there is no doubt his habits were unsteady, but for all that his death is very suspicious.