[This Document is the Property of His Britannic Majesty's Government, b
C.O.
15128
AFFAIRS OF CHINA.
CONFIDENTIAL.
[12219]
No. 1.
REGP 5 MAY 09
191
[March 31.]
SECTION 1.
Sir E. Goschen to Sir Edward Grey.(Received March 31.)
(No. 113.) Sir,
Berlin, March 29, 1909. I HAVE the honour to report that in its sitting of the 27th instant the Reichstag passed the estimates for the German Protectorate of Kiaochow.
The Secretary of State for the Navy, Admiral von Tirpitz, said that Germany had every reason to be satisfied with the industrial and commercial development of Tsingtau, which had proceeded much more rapidly than the Naval Administration had expected. He pointed out that after fifteen years' existence the state of Hong Kong had been so backward that there had been a question of giving it up; Tsingtau, on the other hand, after only eleven years, ranked in importance commercially seventh among the Treaty ports. In this brief period a flourishing colony of 40,000 Chinese had sprung up on what had formerly been only a barren rock.
Admiral von Tirpitz went on to say that, although the German export trade to Tsingtau was not at present very considerable, there was every prospect of its increasing. Orders for iron goods had recently been placed in Germany to the value of about 1,500,000. It should further be borne in mind that the Imperial statistics relating to trade with Kiaochow were not reliable, as goods destined for the Protectorate were in many cases declared for China. A striking example of this was to be found with regard to the export from Germany to Tsingtau of aniline dyes; the official returns gave the total amount as under 1,3001, whereas it was in reality nearly 150,000l., and Germany had already nearly obtained a monopoly in the import of this article in the North of China. It was extremely probable that the returns in other classes of exports to Kiaochow had been underestimated in the same manner.
Admiral von Tirpitz did not consider that the present military detachment in Tsingtan of 2,500 men was larger than was required for the safety of the European population in the Protectorate. Great econoray had been exercised in the matter, and the annual cost of maintaining the detachment was only 300,0001.
As regards a mail steamer subvention, Admiral von Tirpitz said that such subvention was not for Tsingtau alone, but for the connection between Shanghae and Northern China, and that it would be absurd if a subsidized steam-ship line did not touch at Tsingtau, which was the only German Colony on the way. He called especial attention to the economy which had been exercised in the administration of Kiaochow, pointing out that in the course of a period of five years the Imperial subsidy to the Protectorate had been reduced by about 300,000%. Further efforts would be made in the same direction, and it was hoped that Tsingtau would eventually become self- supporting.
I have, &c. (Signed) W. E. GOSCHEN,
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