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troops they observed large numbers of apparently Chinese troops in regular uniform, who were in position on the hills to the north of Taipohu village. There was also a battery of guns mounted in a regular emplacement. These people opened fire which was sustained for a considerable time until the arrival of Her Majesty's Ship "Fame" with Captain Long, Deputy Assistant Adjutant General, who had gone round to arrange the position of the camp. The "Fame" landed a party of 16 men under Lieutenant Keyes, R.N., who joined the forces engaged on the hill. The "Fame" then opened fire on the Chinese position and the troops and bluejackets advanced, clearing away the assailants who were regularly intrenched, and capturing a flag which had on it an inscription showing it to be the flag of one of the local land forces of China.

15.

On receiving intelligence of the serious turn that events had taken Major-General Gascoigne proceeded to the spot himself, with three companies of the Hong-Kong Regiment and one company of the Asiatic Artillery. He was accompanied by Mr. Stewart Lockhart who was instructed by me to hoist the flag on arrival and to read Her Majesty's Order in Council and my proclamation so as to make our position regular. Early on the morning of the 16th, I telegraphed to the Consul at Canton requesting him to inform the Viceroy that the British flag had been hoisted, and to request that all Chinese soldiers and officials except the Customs officials might be removed from the leased area, to which request from the Consul His Excellency sent a verbal message that he declined

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