After the Sino-US Ambassadorial Talks ceased in December 1957, further talks were suspended indefinitely. On 23 August 1958, the PRC again targeted artillery barrages on Quemoy and Matsu, igniting another confrontation. However, on 6 September, both Zhou and US Secretary of State John Foster Dulles publicly announced possible peaceful measures and this led to the convening of the Sino-US negotiations in Warsaw from 15 September onwards. In particular, this chapter reviews the positions of the ROC, US and PRC just prior to the outbreak of the crisis and critical developments. Next, it scrutinizes the reactions of China, the US and Taiwan to this crisis and the speed of its resolution. Finally, the rationalizations given by China and the US seeking to justify their actions to their domestic public and in the international arena are considered.