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Ngai needs about $1,000,000 for his initial expenses. expects that as soon as he captures a place in Kwongtung, which he thinks he will succeed in doing, he will be able to maintain his fleet. In the meantime, certain individuals in Shanghai have promised him some money, but I do not know what the exact amount is. It is gai's earnest hope that he may be able to obtain some financial assistance from Hongkong. After all, in fighting his own battle he is also fighting Hongkong's, and he considers that it is up to the merchants of the Colony to render him at least some financial assistance in order to make the expedition a success.

Sun Chuan-fang also sent telegrams to Admiral Yeung Shie chong, the Commander-in-Chief of the Yangtsze Meet at llo Yuet, and to Chow Tam-yan, the Tuchun of Fukien, informing the of Ngai's appointment, and asking them to render Ngai every assis- tance. Ngai went to Mo Yuet trying to see Admirel Yeung, but the admiral had already sailed. In Shanghai he saw a lir. Ns, a representative of the Ministry of the lavy. Ng promised to help with ships, but pointed out that, unlike the army, the navy could not depend upon supplies on the spot, and that therefore Ngai must be responsible for the supply of food and fuel to the ships. Ng estimated that about $15,000 a ship a month would be required. The number of gunboats which Ngai will bring South

will depend on the amount of money he will be able to raise; and

he considers it a great pity if for the want of two or three

lahks of dollars, he may have to come with a fleet inaduate for

his purpose.

General Ngai sax Lau Chung-ki at Nanking, and Lau definitely promised him 500,000 rounds of rifle-cartridges in the first instance, besides 1,000 tons of coal. Further supplies would be given afterwards. Ngai thinks that the time has come for action, and it is only the lack of Loney that is holding him back.

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