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e in the attempt. Sioco separated his forces into three divisions. The city was set fire to, and Sioco advanced towards the fort, into which hand-grenades were thrown, whilst Li-ma-hong supported the attack with his ships' cannon. Sioco, with his division, at length entered the fort, and a hand-to-hand fight ensued. For a while the issue was doubtful. Salcedo fought like a lion. Even the aged Governor was well to the front to encourage the deadly struggle for existence. The Spaniards finally gained the victory; the Chinese were repulsed with great slaughter, and their leader having been killed, they fled in complete disorder. Salcedo, profiting by the confusion, now took the offensive and followed up the enemy, pursuing them along the sea-shore, where they were joined by the third division, which had remained inactive. The panic of the Chinese spread rapidly, and Li-ma-hong, in despair, landed another contingent of about 500 men, whilst he still continued afloat; but even with this reinforcement the _morale_ of his army could not be restored. The Chinese troops therefore, harassed on all sides, made a precipitate retreat on board the fleet, and Li-ma-hong set sail again for the west coast of the island. Foiled in the attempt to possess himself of Manila, Li-ma-hong determined to set up his capital in other parts. In a few days he arrived at the mouth of the Agno River, in the province of Pangasinan, where he proclaimed to the natives that he had gained a signal victory over the Spaniards. The inhabitants there, having no particular choice between two masters, received Li-ma-hong with welcome, and he thereupon set about the foundation of his new capital some four miles from the mouth of the river. Months passed before the Spaniards came in force to dislodge the invader. Feeling themselves secure in their new abode, the Chinese had built many dwellings, a small fortress, a pagoda, etc. At length an expedition was despatched under the command of Juan Salcedo. This was composed of about 250 Spaniards and 1,600 natives well equipped with small arms, ammunition and artillery. The flower of the Spanish Colony, accompanied by two priests and the Rajah of Tondo, set out to expel the formidable foe. Li-ma-hong made a bold resistance, and refused to come to terms with Salcedo. In the meantime, the Viceroy of Fokien, having heard of Li-ma-hong's daring exploits, had commissioned a ship of war to discover the whereabouts of his
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