Immediately upon receipt of this memorial a decree appeared in the Peking "Gazette" ordering Li-sieh-tai to be degraded from his rank, and commanding him to proceed at once to Yunnan for trial before the high commission.

As we have said before, we think Li-hang-chang's account is substantially correct. There are a great many circumstances tending to exculpate Li-sieh-tai from any wish to have Margary murdered. Had such been his wish, he might more easily have disposed of him when he passed through en route for Burmah. Moreover, at the very time of Margary's murder, Mr. Elias, a member of the expedition, who had struck off from the main body in order to explore another route to Momien, was entertained by Li-sieh-tai at Muangnow, a town at some distance from the seat of the murder. Though completely in his power, Mr. Elias received all possible civility compatible with a determined and successful opposition to his further advance. Now it seems absurd to believe that Li-sieh-tai felt any stronger personal dislike for Margary than he felt for Mr. Elias.

In regard to his complicity in the attack on the expedition, the evidence is just as strong on the other side. He had a deep and by no means unnatural prejudice against English exploring parties. The last mission of the kind had entered into negotiations, as we have already mentioned, with the enemies against whom this Chinese general was prosecuting bitter war. The smouldering embers of the rebellion were not even yet entirely extinguished; the presence of an armed body of foreigners, no matter how small, who had previously shown a friendly disposition toward the Mohammedan usurpation, might awaken new hopes in the breasts of the still surviving rebels. This feeling, combined with the jealous wish of the border merchants, both Chinese and Burmese, to retain a monopoly of the overland trade, undoubtedly inspired a general feeling of hostility among the local officials and the people, which found a ready instrument in the greedy and savage character of the frontier tribes. Where so much combustible matter was heaped up, it needed but a hint to bring on the catastrophe that followed.

While Li-hang-chang and the Chinese commission were conducting the preliminary investigations, Mr. Grosvenor and his colleagues were approaching. Their journey across the empire was attended not only with no opposition or difficulty, but they were received everywhere with great and even obsequious respect. Upon arriving in Yunnan they found an immense pile of evidence awaiting their inspection. Mr. Grosvenor's report has not yet been published, we believe, but from general rumor, and the fact that nothing has been heard to the contrary, we are justified in believing that he found the state of the case to be substantially as it was reported by the Chinese high commissioner. After having reviewed the evidence presented, after having witnessed the execution of a number of wretches convicted of direct complicity in the murder of Margary, the Grosvenor commission pursued its way, escorted by troops that had been despatched from Burmah for the purpose.

Diplomatic negotiations were once more transferred to Peking, and turned upon the compensation to be offered by China for the violation of international law that had occurred upon her soil. The demands of the British minister, who had in the mean time been knighted as Sir Thomas Wade by the Queen, as a just acknowledgment of his efficient services, were considered too severe by the Chinese government, and at one time it looked as if all further negotiations would be broken off.

Sir Thomas finally carried his threat to leave Peking into execution. Prince Kung had evidently not expected so decided a step, and was seriously alarmed by it, for the Chinese government have shown throughout the affair a very wise disposition not to push matters to the last extreme. Li-wang-chang (a brother, we believe, of the official who was sent to Yunnan), the governor of the province of Chihli, the highest and most powerful statesman in the country, was immediately granted extraordinary powers, and sent after the English minister. After some diplomatic fencing Sir Thomas agreed to meet the Chinese envoy at Chefoo—a seaport about half way between Shanghai and Peking, a great summer resort of the foreigners in China—the Newport of the eastern world. Here, in the month of September, 1876, with much surrounding pomp and ceremony, a convention was signed between the English and the Chinese plenipotentiaries. The final settlement of the difficulty was celebrated by a grand banquet, given by Li-wang-chang to Sir Thomas and the other foreign ambassadors, who had been drawn to Chefoo by their interest in the negotiations.

The following is a synopsis of the agreement:

1. An imperial edict to be published throughout the Chinese empire, setting forth the facts of the affair, subject to the directions and approval of the British minister.

2. Consular officials to visit the various towns and public places to see that the said imperial edict is posted where all can see it.

3. The family of Margary to be paid about $250,000 indemnity.