KIAOCHAU

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area, and the consequent freedom of goods and passengers to pass in and out, from and to the hinterland, without hindrance or control of any kind-a traffic simplification from which a considerable increase in trade was expected. The new arrangement inspired confidence in the stability and future of the port and attracted artisans, traders, and wealthy Chinese firms, which last, hitherto dealing with Chefoo, had until now kept aloof from the place. The total value of trade increased from 30.7 millions Haikwan Taels in 1906 to 39.7 millions Haik wan Taels in 1909, and reached a total of Hk. Tls. 56,330,321 for the year 1912, or an increase of 20% over the previous year, notwithstanding the disadvantageous conditions for trade caused by the revolutionary troubles in China.

The Bay of Kiaochau is an extensive inlet two miles north-west of Cape Jaeschke The entrance is not more than 13 miles across, the east side being a low promontory with rocky shores, with the new town of Tsingtau ("green island," from a sinall grassy island close to the land) about two miles from the point of the peninsula. On the west side of the entrance is another promontory with hills rising to about 600 feet. The shore here is rocky, and dangerous on the west side, but on the east side is a good stretch of sandy beach. The bay is so large that the land at the head can only just be seen from the entrance (about 15 to 20 miles away), and the water gradually gets shallower as the north side of the bay is approached. The old Chinese Kiaochau city stands at the north-west corner of the bay about 5 miles from the sea and beyond the frontier of the German Protectorate. At Tsingtau there are two anchorages for big ships; the larger and better one is round the point of the east promontory, on the north side, and the other, smaller one, on the south side. A new mole was opened on March 6th, 1904, which accommodates five vessels with berths. A second mole was opened a few months later, and a third for kerosene ships was subsequently constructed. Both have direct connection with the railway. About 20 ships can be berthed simultaneously in the harbour.

The hills, in former days merely bare rocks of granite and porphyry, are now clad in fresh green owing to an extensive scheme of afforestation, which was decided upon in the early days of the colony. The soil of the valleys between the ranges and the plain country on the north-east is alluvial and very fertile, and is carefully cultivated. Wheat, barley, beans, millet, maize, and many other grains in smaller quantities are grown. The foreign residential quarter at Tsingtau has been well laid out, and there are some good foreign hotels. The first sod of the Shantung Railway was cut by Prince Henry of Prussia in October, 1899, and the line to Tsinanfu was opened on the 1st June, 1904. It has done a prosperous business from the day it was opened. In 1912 the goods traffic over the line amounted to 852,001 tons; 1,230,043 passengers were carried in 1912, which meant an increase in passenger traffic of 36% over the previous year's figures. The coal mines have shown good progress. The output of the Shangtung Mining Company at Fangtse and Tsetchuan (Hungshan) in 1912 was 573,676 tons. Hungshan coal enjoys an ever-increasing demand for bunker coal.

Before the war, a brewery, soap factory, and two albumen factories were in full work, as well as a Government slaughter-house and ice plant. A large hat factory, fitted with the most up-to date appliances was also in full operation. There is a big export of cattle to Vladivostock. Fruit grafting is becoming a promising enterprise. The develop- ment of the town of Tsingtau had made considerable progress; the town is thoroughly lit by electricity, houses had been springing up in all directions, and a system of water supply and sewerage add much to the hygienic conditions of the town. The dry dock commenced operations in October, 1905, and important new harbour works were completed a few years ago. The dock employed 56 Europeans and an average of 1,400

Chinese workmen.

For the European community the Government maintained a reformed modern grammar school, open to boys and girls alike. In addition to the State school there was a girls' boarding and day school carried on by Franciscan Nuns. There were also a number of village schools in which in a five-years' course of instruction the pupils could obtain an elementary knowledge of Chinese, arithmetic, physical and political geography, natural science and German. For secondary instruction in European and Chinese sciences there was the German-Chinese High School opened on October 25th, 1901. The new buildings recently constructed were designed to accommodate 520 pupils. The teaching staff consisted of 28 German and 9 Chinese teachers. thoroughly equipped observatory was opened in January, 1912, through the munificence of the Union of German Navy Leagues abroad.

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The temperate climate and the excellent beach brought Tsingtau into prominence

as a summer resort.

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