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It was thought at one time that, should the shipping Companies agree among them- selves to carry out all the requirements of the Godown and Wharf Ordinance on behalf of their clients, matters might yet be arranged. But the refusal of the Chinese to ship cargo of any description at Tsingtau by whatever line, unless they were guaranteed complete immunity from Government interference of every kind, was merely a pre- liminary step. Later on, in order to emphasize their objection to the Ordinance, they decided to boycott the Great Harbour altogether; while at the same time, the Shantung Guild in Shanghae was passing a Resolution that the port of Tsingtau was to be avoided as much as possible in shipping goods to and from the province. Eventually, the Chinese Chamber of Commerce at Tsingtau and the Shantung Guild in Shanghac drove their attack home by resolving to suspend the import and export trade of Tsingtau altogether, until the Ordinance had been rescinded. Goods shipped to Shantung were to go to Chefoo, whence they were either to be sent overland to Weihsien and on by the railway, or else by sea to Yang-chino-kou and theuce up the Hsiao-ch'ing-ho to Chinan. One merchant who ventured to send 50 bales of cotton from Shanghae to Tsingtau was fined 2,000 taels by the Guild. In the meantime, the steamers for Chefoo were carrying full cargoes,
Similarly, with regard to imports, the Chinese intended, after completing their current contracts, to ship no more goods from Tsingtau; the Peninsular and Oriental Company's steamer "Somali," which arrived there on the 21st November, was to be the last to receive any cargo.
Trade, of course, came to an absolute standstill; strawbraid, which is one of the principal exports, was, so Mr. Eckford informed me, diverted to the Tien-tsin market; until even the local German press, which had hitherto carefully avoided the least reference to the boycott, voiced the fear of the community that the laboriously built-up trade of Tsingtau would be irreparably damaged if the Government obstinately refused to come to terms.
Apparently at this stage the authorities realized that they had underrated the power of combination among the Chinese, and that the situation was desperate. They therefore appointed a Committee, consisting of Mr. Schmidt (of the Schantung Bergbau Gesellschaft), Mr. Munder (agent for Messrs. Arnhold, Karberg, and Co.), and Mr. Eichwede (agent for Messrs. Diederichsen, Jebsen, and Co.), with full power to negotiate with the Chinese Chamber of Commerce, who, it was hoped, would meet them half way. The result, however, was a foregone conclusion. Writing on the 23rd November, Mr. Eckford stated that the final meeting between the-German Committee and thé Chinese had taken place that morning, and that the Government had had to give way on every point; the old order of things had been restored, the only difference being that, whereas formerly the shipping Companies rented the godowns for a fixed yearly sum, they were now to pay a certain amount on each ton of cargo stored beyond a limit of ten days.
When the European Chamber of Commerce, in view of the threatened boycott of Tsingtau by the Chinese, had first scut a deputation to the Governor, with a view to obtain a rescission of the Ordinance, the latter referred to the fact that the collection of the godown and wharfage dues had been farmed out to a Cantonese firm trading under the style of Wing-Kee; he added that he had already been considering whether it could not be divided among several firms, in order to obviate the disadvantages attendant on a monopoly. The reasons why he had originally chosen the firm of Wing-Kee were :-
1. That it had a good reputation on the China coast;
2. That, as a Cantonese concern, it was independent of local merchants; and 3. That, not being itself interested in shipping, it could be trusted to act with impartiality.
The Governor went on to say, however, that he approved of the Committee treating with the Chinese, and he only regretted that the proposal had not been put forward earlier; the firm of Wing-Kee had of its own motion asked to be relieved of its agreement, so that there was nothing in the way of a satisfactory settlement. The conclusion of the negotiations was marked by a letter addressed on the 25th November by the European to the Chinese Chamber of Commerce, stating that Messrs. Wing-Kee, having heard that the Shantung merchants objected to their controlling the loading and discharging of steamers, on the ground that such a monopoly was detrimental to the commercial interests of Tsingtau, had asked to be relieved of the contract; that, as it was further understood to be the wish of the native firms that the shipping Companies should themselves look after such matters, the Foreign Chamber of Commerce had approached them on the subject, when the Companies had readily undertaken the task;
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the authorities having then been asked to sanction this arrangement, had accorded it their approval and had freed Messrs. Wing-Kee from their contract; that Chinese firms were therefore now at liberty to deal with whom they pleased, and that all difficulties between foreign and native firms could be settled according to the custom of the port.
Thus the ill-fated Godown and Wharf Ordinance, which was introduced in the teeth of universal opposition, terminated its brief existence of barely over three weeks; and, disguise it as they may, the German authorities cannot conceal the fact, that they have been compelled to surrender unconditionally to the Chinese. It is true that they have thereby put an end to the boycott in Tsingtan, but, on the other hand, they have lost what was hoped would prove a lucrative source of revenue. Nor can their difficulties be said to end there. The inevitable question now arises as to what taxes they will be able to raise to make up for this loss. The burden is already as heavy as the people can bear; while their recent success will assuredly confirm them in resistance to any future proposals for fresh taxation.
Nor is it in Tsingtau alone that the surrender of the Germans will affect their prestige, and in a lesser degree that of other Europeans; it cannot but help to fan the flame of the anti-German propaganda in Shantung which has by no means been stamped out, though since the return of Governor Yuan to Chinan it has been conducted more secretly. It may be merely a coincidence, but the agitation for the recovery of mining rights seems latterly to have gained a considerable accession of strength. The Society for the Protection of the Mines, though nominally dissolved, is as active as ever, and I understand that new leaflets are continually being brought out; the total number distributed in the province up to the present cannot amount to less than half-a-million.
The latest and most inflammatory of these leaflets calls upon the people of Shantung to establish an anti-German boycott, as foreshadowed in my despatch No. 18. The agitation, though vigorous, is conducted with great secrecy; the leaflets are jealously withheld from foreigners, officials, and Chinese from other provinces, and I have consequently been unable to procure a copy thereof; but the gist of it has been communicated to me as follows:-
1. The movement is purely in the nature of a boycott, there must be no rioting and no harm done to German life or property;
2. Nobody must work for the Germans, either as servant, clerk, miner, engine- driver, or in any other capacity whatever;
3. Nobody must travel or send goods either by the German railway (the Tsingtau- Chinan line) or by German steamers;
4. No provisions of any kind are to be sold to Germans;
5. No houses are to be leased or sold to Germans; and
6. No German goods are to be purchased, nor are goods of whatever origin to be bought from or sold on behalf of German firms.
I understand that clause 2 contains a special appeal to the Chinese at present employed on the German railway and in the mines under German control to help the cause by striking work at once; while, in connection with clause 3, I am credibly informed that the cart-hongs along the railway line, which were closed long ago, are beginning to reopen, and arrangements are being made to resume the old mule-cart traffic.
It is possible that these reiterated and widely-circulated appeals, in spite of the warning contained in clause 1 as to rioting, may yet lead to local disturbances; at the same time, I believe that the Chinese authorities fully realize the danger of the movement, and are doing what they can to prevent it from coming to a head." Still, the possibility of the boycott eventually maturing is one which should not be overlooked.
On the other hand, quite apart from this agitation, which is being engineered by the student class, there is undoubtedly a deep-seated feeling of hostility towards the Germans among the population of Shantung, chiefly due to the universal belief that they have ulterior designs upon the province. All British subjects, whether school- teachers, missionaries, or merchants, have informed me that they are continually being approached by Chinese anxious to do business with them rather than have any dealings with Germans. Mr. England, the local agent of the British-American Tobacco Company, who is continually travelling on business throughout the province, tells me that he often has to contend with much prejudice owing to the idea firmly implanted in the people's minds that only Germans are allowed to trade in Shantung; once they understand that he is English, his business is immensely facilitated. On these grounds
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