Sir T. Wade to Earl Granville.―(Received January 27)

(No. 5 Confidential)
Peking, January 14, 1881

(Telegraphic)
WITH reference to my telegram No. 5 of last month, Chargé d’Affaires of Russia has become much more moderate as regards China; also more communicative.
He believes there was a serious crisis at St. Petersburgh between 5th and 15th December, after which the situation improved.
He declares that annexation in the east would be ruinous to Russia, but holds outlet for Russian enterprise” along the shores of the Black Sea” to be indispensable.
French Minister has shown me a despatch of October last, in which French Chargé d’Affaires at St. Petersburgh reports Russian Government much disquieted by sale of German rifles to China.
German Minister says prospect of peace with Russia is illusory.
China has, at any rate, contract for 100,000 German rifles, of which one-fifth have been delivered.
Fear of rupture with Russia is disappearing fast, but rumour of misunderstanding with Japan gains ground. Russia desires this, I suspect, because she has designs on Corea.
German Minister desires it because he believes trouble between China and Japan of advantage to all of us.