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GERMANY AND CHINA.

PREPARING FOR EMERGENCIES. The Viceroy of the two Kwang has received a telegram from Peking to the effect that as the Germans have occupied Kiaochau Bay he is to hold a Council with the Governor, the Tartar General, the Commander-in-chief of the land forces, and the Admiral of the Southern Squad- ron to see what steps should be taken to strengthen the forts on the river and to be prepared for any emergencies that may arise.

GERMANY'T DEMANDS.

Peking, 21st November. The demands preferred by Germany against China con sist of six items. including the pay- ment of a sum of 600,000 taels for the relief of the families of the murdered missionaries, com- pensation for the expenditure incurred by des- patching men-of-war to Kiacchau, degradation of the local officials, and the arrest and heary punishment of those concerned in the outrage.

The Chinese Government, on the other hand, has demanded the evacuation of Kiaochau Bay by the German war-ships before entering upon negotiations in respect to the German demands.

Tokyo, 22nd November.

A telegram has been received in Tokyo to the effect that the German Minister in Peking is making preparations to withdraw his Lega- tion, acting under instructions from the Berlin Government. No news to this effect, however, has yet reached the Foreign Office.

Tokyo, 22nd November.

The Japanese Government will decide on what attitude to take in view of the German occupation of Kinochau Bay, after the receipt of detailed reports from the Japanese Minister to China and the Japanese Minister to Ger- many-obe Chronicle trauslations.

THE GERMANS AT KIAOCHAU BAY,

A Peking telegram received on Saturday, 20th November. states that in answer to the.

THE HONGKONG WEEKLY PRESS AND

proceeding. the Minister remaining at Wu. cbang, until he could exact acceptable terms, down came the news of the murder of the two German Catholic missionaries in Shantung. Bishop Anser, the head of the Mission, was fortunately in Berlin at the time, and as he is known to be a close personal friend of the Kaiser, we may be sure the occasion was made the most of to explain to that erratic but very explosive monarch, the precise position of affairs in China and the ease with which Ger- many might, by seizing such a fine opportunity, obtain a hold upon China from which neither herself, China, norauy jealous Power could eject She took it her without facing a great war. at the right time and administered a lesson in practical statesmanship and diplomatic oppor- tunism which other Powers will do well to take to heart. It is amusing to read the comments of the Chinese papers upon this incident. The Shenpun, which represents most closely the general tone of Chinese official opinion-if the hazy mental fog which surrounds the Yamens of Peking can be called opinion, say that a more peaceful means of settling the massacre No doubt our might have been followed, Chinese friends have lingering and pleasaut memories of the scores of cases ou which mere

British missionaries and travellers, men, women and even children, have been massacred without any serious complications and paid for with a few thousand taels, all of which have been exacted from foreigners by the specious medium of famine" sunds and other pious "squeezes, But the German Government has evidently profited by the fooling of the British authori. ties in China. The Shenpao says that the gravity of the Shantung massacre was realized. by China. No doubt the Chinese mandarins were duly prepared to snivel and wring their bands over the iniquities of the "ignorant unruly mob," but their feelings bave been spike? this

harrowing experience by the kindness of the German Admiral

December 2, 1897.

The guns of the four German warships also were trained to sweep the country in the rear of the forts, but there was no anticipation what- erer that the Chinese maudarius and troops would make any such rash attempt.

A telegram was received here from Kiaochao this afternoon showing that everything was quiet, thus practically contradicting the state- ment made in another local paper that the Germans had ent the wires. On the contrary they are making very good use of the Chinese telegraph service and the Chinese Administra. tion is interposing no delay or difficulty in the transmission of German telegrams between Kiaochao

aud Peking and Kiaochao and Shanghai. A German naval officer came down here by the Loongmoon to make certain arrange- ments in connection with the permanent occu- pation of the place. It has not yet been formally declared annexed, but we expect to hear very shortly of a declaration to that effect.

We further understand that the action of Admiral Tirpitz was taken in obedience to the direct orders of the Kaiser, conveyed through Baron von Heyking, the German Minister, who has thus been enable to lift German prestige in China to a point which fairly leaves all his rivals in the rear. When are the British going to follow the lead of their German cousin?

They surely have many beavy scores to settle

in China. The Bennertz case, from an inter- national point of view, and considering that it touches the sacred British breeches pocket, and not lives of mere British subjects, is certainly quite as strong as the German case in Shan-. tung. China Gazette.

A FINANCIAL TYPHOON,

Shanghai, 24th November. It is a matter of common knowledge that Shanghai is going through what is little short of a financial crisis by reason of the extraordin-

report of Governor Li Piug-hèng of Shantung, in relieving, them of all responsibility. The ary stringency of the money market, but few about the seizure of the Tsingtao forts in Kiao-Shenpoo proceeds to dilate upon the friendly people outside those most intimately concerned

to

chan Bay by the German fleet, the Tsung-li Yamên simply instructed that Governor wait and see what the Germans intended to do next." He was also directed to leave the management of the whole affair to the Central Government, but in the meanwhile, the per. petrators of the outrage at Yenchau were to be speedily brought to book without any further delay on pain of degradation and loss of office. There is great excitement in official circles in

Peking owing to the Kiaochan, incident, and up to date (Saturday 20th) there have already been three private meetings between some members of the Tsnugli Yamen and officials of a certain Legation.-N. C. Daily News.

The German men-of-war's men are making themselves very comfortable for the winter at Kiaochan Bay, ou the Island of Tsintau. In addition to the German men-of-war those of

several other nations have arrived, or

are to

Did they (the Germans) think someone else might forestall them at Kiaochau? The Berlin Government had, we know, long before made up its mind to exact some payment in the shape of territorial concessions from China for

any

are aware of the almost unprcedented danger of a ruinous collapse, covering every phase of life, which exists. The native rate of interest for short loans has jumped up to an extraordinary figure-indeed it is little short of war rates-- and the most curious feature about the business is that it is not because of

of the usual Causes which

ໂດ operate damage credit, elevate interest, and engender that ordinary premium, or impair financial confidence which national or commercial credit is shaken which are generally compled with periods in by reason of aunsual national disasters. The ordinary bugbear of silver using countries is the sole cause of the prevailing distress and dis-

relations that prevail elsewhere between Ger- many and China, and points out the fact that German military instructors are installed in numerous Chinese forts, which we take *LS a hint that China may try to square accounts by getting rid of these ungrateful employees. In conclusion it also hints that the action of Germany is coutrary to the wishes of Russia and that the other European Powers, the writer asserts, are anxious to prevent the further expansion of Russian in Huence. Is China a party to this desire: Was the Kinochan business rehearsed in Peking by Li Hang-chang? Is Russia likely to object, as the Shenpao hints, to the German coup? This turbance-exchange. But, we venture to say, we hardly take to be the case, considering the action of the German Admiral in communicat-that the effects which we are now enduring the few people would have forecasted five years ago ing his intentions to his brother admirals before burden of could have arisen from the mere he took the step, which is the signal for the depreciation of silver. Within the past couple general game of carving up China, which, we

of weeks the native rate of interest has risen believe, is drawing very near-China Gazett

from 7.5 mace to T. 1 and even T. 1.50 per mille per diem for short loans. The foreign and Chinese banks have been denuded

of almost all their silver; in fact, there

arrive shortly. The incident has thus caused some little alteration in the winter naval station

Shanghai, 25th November. arrangements. On Saturday, 20th November,

The German steamer Loongmoon (Captain an armed party of 40 blue-jackets was 'landed and was marched to Kinochan town, where they which place she has just carried despatches and is not to-day more than between eight to Schulz) arrived here to-day from Kiaochao to inspected the Chinese telegraph office. The stores to the German fleet and occupying forces. nine lakhs in sycée in all the banks in officers made copious notes and, with the men, stayed overnight, returning to Tsintau yester-everything was perfectly quiet, many of the should be to carry on the immense business of She left the place on Tuesday afternoon when Shanghai, or about one-fifth of what there day. (21st).-Mercury.

working about the forts, repairing old, or erect- Chinese braves being industriously occupied in

the port at this season of the year. The reason for this is to be found in the extraordinarily ing new buildings for their German masters. large remittances of silver from Shanghai to The greatest harmony prevailed between the

the northern ports, Chefoo, Tientsin. but more Germans and Chinese and the erstwhile Chinese especially to Newchwang, where the export the part which Germany had played in conjunc-General, with his pigtail cut off, was peacefully merchants who usually take imports-piece- tion with her new continental allies in driving Kiaochao fort, nuder the protection of the new

living in Chihtang "castle" commonly called goods, yarns, metals, etc.,-ugainst their exports, Japan off the prostrate carcase of the helpless occupants of the place.

have been steadfastly holding back from pur- giant in '95. She had applied for a harbour

chasing all foreign products or manufac and some islands at Tongthu north of Foo-

tures from Shanghai, in consequence of the chow, and had been refused by China, mainly

abnormal and rainous rate of exchange. At because the British objected to Germany |

the same time they have been availing them- acquiring a hold on the coast so close to Hong-

selves of the splendid profits derived from kong, while the Japanese would have stren-

exporting silver grown products to gold uously resented the acquisition of a naval

standard countries, while refusing to rise station in such close proximity to Formosa.

to the increased prices of importers, necessitated Then came the mysterious mission of Baron No news of any protest by the Foreign Min- by the enhanced silver price of gold or gold von Heyking, the German Minister, up theisters at Peking had been received at Kiaochao, produced articles. Consequently the export Yangtse and the excuse for fresh demands but preparations to resist any attempt to dis-side of the scales weight down the imports, and, furnished by the fortunate assault upon the lodge them by the Chinese had been made by while we have enormous demands for silver. captain and officers of the German craiser and the German forces ashore by mounting guns from Shanghai to settle for exports, we have no the insult to the flag at Wachang. Even while and cutting trenches-commanding the ap

calls for imports to square accounts or equalize discussion in connection with that incident was proaches to the forts.

the pressure. The force of this undue incidence

The German officers with small reconnoiter- ing parties have made several flying expeditions inland, as far as twenty li from the coast, and were everywhere well received by the people, whom they told not to be alarmed so long as they conducted themselves amicably towards

the visitors.

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