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PUBLIC RECORD OFFICE

Reference:

THILLC.O. 882

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

8 PUBLIC RECORD OFFICE, LONDON

47.

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On our way back from the review we visited the Provincial University, which is made up of a fine series of buildings with spacious class-rooms. Chinese, English, French, German and Japanese are all taught. The Hond of the University, who is a Cantonese with whom I could converse in his own dialect, informed me that English was the most popular with the students of all the languages studied.

48. After the University we visited the Hospital which is under the management of Taotai Tang. There is a German doctor in charge of the department, in which the patients are treated according to Western methods, which are gradually becoming more popular. Mr. Tang told me that the German doctor in question, against whom there is personally no objection whatever, was appointed to the hospital by pressure, and that there was an attempt to place a second German doctor in the institution, who actually took up his abode there for some time. But Mr. Tang refused to recognise him or to pay any attention to him, so he finally took his departure. Another instance was given nte of the shameless manner in which China is made to accept the services of a German, of whom she really desires to get rid. At Chinan there is at present a German named Baron von Seckendorf, who was engaged by the former Governor, Chou Fu, to try to He was sent obtain information for him during the Russo-Japanese war in Manchuria. there but had to come back, as his mission proved a failure. He was afterwards supposed As his advice is to act at Chinan as a kind of adviser on foreign affairs to the Governor. never asked and as he is old and deaf, the present Governer desi.ed to get rid of him and abolish the sinecure which he holds. But the Consul for Germany interfered, with the result that the Governor was compelled to extend his engagement for a further period of six months. Incidents such as this cannot fail to lower foreigners in the eyes of the Chinese, and one cannot help feeling that the Germans by such acts are laying up for themselves trouble in the future, for the Chinese have long memories and are not likely to forget such insults to their national pride.

49. In the afternoon of Tuesday, the 22nd, we inspected the mint, in which copper pieces of the value of ten cash are coined. The mint is entirely under Chinese management, no foreigner being employed in it. An attempt has been made to stop the importation into the province of cash from outside sources and thus confine the supply of its copper currency to the coins made at the mint. It is hoped that in this way gambling operations in cash which have hitherto proved deleterious to trade may be prevented.

50. In the evening we had a farewell dinner with the Governor, where we met the members of the British community only and at which we were treated with marked cordiality.

51.

On Wednesday, the 23rd May, we left Chinan for Ts'ing-tau. We had to arise very early in order to catch our train which started at 6.30 a.m. We arrived at - the station at 6 a.m. and found the Governor and the chief officials were already there, waiting to bid us good-bye. After we had drunk last stirrup cup a rather trying ordeal at such an early hour in the morning-the Governor personally escorted me to our carriage and having said a last adieu we started on our return journey.

52. Our visit to Chinan was in every way a pleasant one. The Governor and all his officials treated us with great kindness and outvied each other in their endeavours to add to our enjoyment. They pressed us to extend our visit and their regrets that we could not stay longer appeared quite genuine. It was doubtless a relief to them to have in their midst a visitor whose sole object was of a friendly nature and who had no claims to press, no politics to discuss, no concessions to urge, but who was really pleased to revisit Chinan and to renew old friendships, who was much interested in all he saw and who was able to express his feelings of pleasure and gratitude in the language of his hosts.

53.

On our return journey we had the pleasure of the company of Mr. T'ang, who is a Cantonese and one of the most influential Taotais at the Capital. Among his various duties he acts as adviser to the Governor on mines, having had a practical training in mining in America for several years. He was proceeding to the German coal mines at Fang-tzu in order to try some cases among the miners there, who are all subject to Chinese jurisdiction.

54. When questioned on the subject of mining by Germans in the Province, he stated that the result of the recent war had checked German aspirations and ambition in

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Shantung, which were dependent on the success of Russia and the maintenance of her supremacy in Manchuria. On account of the defeat of Russia, Germany had to draw in her horns and to modify her plans, for the active spinning of the spider's web with Kinochou for its centre aimed at absorbing the whole province. The modification of her attitude necessitated the withdrawal of her troops from Chinese territory in Shantung and though attempts have been made to induce China to believe that the troops were withdrawn out of friendship for her, and though the Governor has obtained decorations for the Governor of Kiaochou, the German Consul at Chinan, and other German officials and missionaries, to show his appreciation of the withdrawal of troops, the Chinese fully realise that if the war had ended differently there would have been no withdrawal of troops, but an increased number would have been moved to the Capital of the Province and stationed there, under the pretence of protecting German interests.

55.

Emboldened by Japan's success against Russia, the Governor of Shantung has also been able to restrict Germany to certain fixed mining areas instead of allowing her to claim five vaguely defined areas, which included the whole mining area of the Province. Mr. Tang, who has been the Governor's right hand man in this matter, informed me that after much negotiation an arrangement had been arrived at under which the Germans are allowed to mine at five or six spots, the right to mine being limited to s space of 30 li-say 10 miles-underground a marked contrast to the areas formerly claimed in the five zones, which were as follows:-

1. Area enclosed within a triangle drawn from Ichoufou east to the Yellow Sen

and south to Kiangsu.

2. Area within a radius of 120 li (40 miles) round Yi shui hsien.

3.-Area enclosed within lines drawn from a point 10 li north-west of Chu cheng along the 36th degree of latitude east to the German leased territory, and from the same point to the sea,

4.--Area within a radius of 50 li (16 miles) round a place north of the Wen River,

100 li (33 miles), south-west of Weihsien.

5.-Area within a radius of 250 li (83 miles) from the treaty port of Chifu (which includes the leased Territory of Weihaiwai and the zone of influence defined under the Weihaiwei Convention of 1898).

56. This agreement would never have been accepted by Germany had Japan been defeated by Russin, and fortunately for China, though she had consented to Germany's demands regarding mining before the outbreak of the war, the question whether taxation should be on profits or the total output had been left undecided. Japan's victory and the undecided question of taxation have enabled China to make an arrangement which is very different from that which Germany originally demanded, and which practically meant the absorption of the whole mining rights of the Province.

57. Mr. Tang is of opinion that the only kind of mining likely to pay in thẻ Province is coal mining, though the Germans are sanguine regarding the gold mines at Ning-hai-chou, the diamond mines at I-choufu, and the iron mines at Chin-ling-chen, at all of which places work is being carried on.

58. As regards coal mining, Mr. Ohlmer, Commissioner of the Chinese L.M. Customs at Kiaochou, states in his Report on Kiaochou for 1905, that "the Fang-tau mines raised 134,000 tons of coal during 1905, which was used partly for the railway, and partly locally, and some was exported. With the opening of the Annie pit during 1906, a considerably increased output and export coastwise may be looked for. At this mine 44 Europeans and 2,000 Chinese are employed, the latter at a pay of from 400 to 600 small cash a day for eight hours' work. In the Poshan region the Tsetschuan shaft has been completed to a depth of 116 metres."

59. In the last annual report of Kisochou it is stated that the coal is excellent for boilers, locomotives, and steamers but that in the opinion of experts it might be greatly improved by washing, the presence of various foreign-substances detracting very much from the quality. To this end a large washing plant is being installed capable of washing 70 tons an hour. An informant at Chefoo does not give the same favourable report of the coal. He states that the coal does very well for boilers which are stationary, but that it is at present useless for steamers or for the railway. He alleges that they tried it on