CO882-(8-9) — Page 78

PUBLIC RECORD OFFICE

Reference :-

TPIEC.O. 882

8 PUBLIC RECORD OFFICE, LONDON

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

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the railway but the results were unsatisfactory as they were unable to keep up the pressure. The fact that it has been deemed advisable to erect an expensive plant for washing purposes tends to show that the coal has not been found altogether satisfactory.

60. Mr. T'ang is not inclined to regard favourably the German attempts to build up a trade at Kiaochou, remarking that one large firm at Hong Kong does as much trade as all the business done at Kiaochou put together. But, notwithstanding his unfavourable opinion, there is no doubt that trade at that port is gradually increasing whilst that of Chefoo is decreasing.

61. In ny confidential report of my journey in Shantung and visit to Kiaochou in 1903 I stated that "it seems fairly probable that unless the Chinese improve the communications both by land and water between the trade centres of the Province and Chefoo, that port will lose much of its present trade, and that Kiaochou will attract the trade of Shantung."

62. Since the date of that report practically nothing has been done at Chefoo to improve its communications with the interior of the province or its harbour. It is true that the Governor of Shantung has been trying to improve the route by the Hsiao Ch'ing Ho, a river converted into a canal leading to within three miles of the Provincial Capital, and 160 miles long. There is a bar at its mouth, on which the maximum amount of water is seven feet. Across the bar as far as Huant'ai-34 miles from the mouth where tidal action ceases, there is plenty of water but the average depth throughout does not exceed three feet. With a view to divert trade from the railway, the Governor is anxious to improve the canal and a Chinese official is at present engaged on a scheme to deepen But the official in question it by discharging water into it from neighbouring streams. has had no training as an engineer and it is not anticipated even by the Chinese them- selves that the present scheme will succeed. In the opinion of Mr. Tang, the only way to improve communication by means of the Hsiao Ch'ing Ho is to dredge the bar at its mouth, so that steamers trading under the inland water regulations may carry on their trade without experiencing the difficulties at present caused by the bar, and he informed me that he had been instructed to inquire whether a dredger can be secured to carry out the necessary work. Some Chinese think that if the canal were improved and the bar dredged, goods by this route would be able to compete favourably against those conveyed by the railway on account of the cheapness of water carriage which, it is alleged, would be much cheaper than by rail.

63. Whilst some attention has been paid to the Hsiao Ch'ing Ho, nothing whatever has been done to improve the harbour at Chefoo. At present there is much loss of time and money owing to steamers being unable to work during the rough weather caused by northerly blows. Not infrequently steamers cannot discharge their cargoes for three or four days. The building of a mole behind which steamers could secure shelter and on to which they could discharge their cargoes would remedy the present unsatisfactory state of affairs, but though this project has been mooted for years no steps have yet been taken to carry it out.

64. Whilst Chefoo has been doing nothing to maintain its position as a centre for trade, Kinochou has been very active since I was there in 1903. The railway has been completed to Chinan. The harbour works," the estimated cost of which is £1,160,000, were started in 1899 and have been steadily and rapidly carried out. The coal wharf, with a length of 790 yards, was opened in 1904. and though the commercial quay is not yet finished, a portion of it 440 yards long has been in use since 1904. It is anticipated that the harbour works will be completed this year when there will be accommodation for a dozen steamers working at a time in any weather. A floating dock† capable of taking in vessels of 16,000 tone was completed in 1905 and commenced work in October. In it were repaired during the last three months of 1905 eight war and merchant vessels with a total tonnage of 14,644 tons.

65. On the completion of the railway which taps the richest portion of the Province, native goods which had always previously found their way from the interior to Chefoo were sent by rail for sale at Ts'ing-tau or for shipment to Shanghai: whilst foreign goods were conveyed into the Province by the same route. In 1904 one-third of the piece goods which in previous years reached the consumer by way of Chefoo and by

• See Photographs, Vol. I., page 2.

↑ See Photographs, Vol. I., page 4.

† See Map, Appendix I.

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pack mule were conveyed to them by railway via Ts'ing-tau, and the imports of cotton yarn dropped from 165,827 to 83,114 piculs,* or practically to half the imports of 1903.

66. In 1905 piece goods made a good recovery owing to Newchang having been largely supplied from Chefoo and to the reopening of trade with Vladivostock after the war was over, but the import of cotton yarn only amounted to 84,463 picule,* the great bulk of yarn imported into Shantung being conveyed by railway.

67. During 1905 the falling off in the exports from Chefoo of goods of local origin to native ports to the extent of It inillion Hk. Taelst also shows to what extent trade has been diverted by the railway and improved shipping facilities at Ts'ing-tau.

68. The trade in yellow silk has left Chefoo and gone to Ts'ing-tau, not only on account of the saving in the cost of conveyance, the chief yellow silk districts being situated near the railway,‡ but also because this valuable and perishable article by transit on the railway escapes much rough handling to which it was formerly liable when conveyed overland.

69. The trade in straw braid, which for long was entirely centred at Chefoo, is now chiefly carried on at Ta'ing-tau, the export having risen from 9,969 piculs* in 1903 to 41,417 piculs in 1905. In fact Ts'ing-tau has become the principal market in North China for this article, having outstripped both Chefoo and Tientsin, and a British firm long established at Chefoo has just started business at Ts'ing-tau. The falling off in exports from Chefoo, such as silk and straw braid, is much felt by foreign firms at that port, as they are chiefly dependent on the export trade, the business in imports being practically entirely in the hands of Chinese.

70. The following table shows the comparative value of the trade of Kisochou from 1899 to 1905 :—

Imports from

Exporta to

Year.

Total Imports and Exports.

Foreign Countries.

Native Ports.

Foreign Countries,

Native Ports.

Hk. Taels.

1899

Hk. Taels.

1,329,929

Hk. Taela.

Hk. Thela.

882,577

Hk. Taels.

2,212,506

1900

158,598

2,703,011

32,282

1,072,292

3,968,183

1901

2,327,609

3,466,903

18,370

2,748,500

8,756,882

1902

3,678,690

4,428,143!

102,949

1903

5,134,229

6,145,276

234,216

1904

3,437,897

9,199,230

845,302

2,166,443

$,097,828

5,403,769

10,376,225

14,611,549

18,886,198

4,372,937

10,753,589

2,430,350

4,794,908

22,351,784

1905 ...

It will be seen that the value of the trade has grown from Hk. Taels 2,212,506 in 1899 to Hk. Taels† 22,351,784 in 1905.

71. Further developments of trade are anticipated which it is thought will be aided by the additional Customs Convention concluded between Germany and Chins, under which it has been agreed to restrict the duty-free area, which formerly included all the German leased territory, and which necessitated the establishment of Chinese Custome barriers and the control of the railway for Customs purposes. The duty-free area now comprises the harbour with its wharves, moles, &c., and the territory in front of the harbour within certain defined limits, including the railway goods terminus. Within the free area warehouses and factories are allowed, but no private residences. In the free area all imports and exports will be deposited and be subject to the control of the Chinese Customs. The new arrangement came into force on the 1st January of this year, when Chinese Customs control of railway traffic and Customs barriers outside the free area ceased. Merchandise leaving the free area, after having paid to the Chinese Customa duty according to the tariff in force at Treaty Ports, is allowed to go anywhere into the province without restriction.

• 1 Pioul = 1334 lb. avoirdupois

↑ Haikan Taeli 3s. Ofyd.

‡ See Map, Appendix I.

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