CO882-6 — Page 137

PUBLIC RECORD OFFICE

Reference :-

PLEC.O. 882

6

PUBLIC RECORD OFFICE, LONDON

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

50

I forward herewith my report on Weihaiwei in the form of a memorandum with a number of enclosures.

I desire to express my very cordial thanks to Vice-Admiral Seymour, K.C.B., to Rear-Admiral Bruce, R.N., and to Colonel Dorward for the assistance rendered to me in carrying out my instructions and for the great kindness and hospitality which they showed to me from my arrival till I finally left the station.

Enclosure in No. 52.

I have, &c.,

FRANK SWETTENHAM.

REPORT ON WEIHAIWEI and its future administration.

1. The first view of Weihaiwei suggests a colder Aden, and I left it with the same impression, except that, as the result of several days of rain, the barren hills were then tinged with green. The territory consists of a strip of mainland ten miles deep surrounding a bay (called by Chinese "the horns of the cow") in the north-east corner of the Province of Shantung, and some islands, of which the largest is Liu Kung. Liu Kung Tau lies roughly east and west across the bay, and so forms an extensive harbour with good and safe anchorage for a large number of vessels of deep draught. The harbour can be gained by either entrance, but that on the west is the one used by all large ships. The Island of Liu Kung is a series of steep hills rising almost from the water's edge. The highest peak is about 500 feet in height. The island is barren and treeless, towards the sea it is uninhabited, but on the harbour or southern front there are a number of buildings, nearly all of which were built by and bought from the Chinese. The harbour is protected from all quarters except the north-east, and no strong wind ever blows from that quarter. The exact positions of the island and mainland territories ceded to the British Government are shown on the attached large scale map,* which I obtained from Colonel Dorward, R.E., the Commissioner.

2. The mainland is a larger edition of the island. From the shores of the bay rise steep barren-looking hills of various altitudes, the highest running to over 1,000 feet. Behind this fringe of hills there is an undulating country, the only features of which are steep hillsides deeply scarped by rains, occasional river beds (dry for the greater part of the year), making seams through more level country, and Chinese villages dotted about at intervals over the lower lands. A close inspection shows that every hill has been terraced for cultivation as far up as the steepness of the ground would permit; but the soil is everywhere full of sand, wretchedly poor, and the almost entire absence of trees, the bare precipitous hills and deep waterless gul- lies at once suggest the hard life of poverty proverbial to the inhabitants of this district.

3. There are about 275 villages in the ceded territory, and I was told that they contained about 250,000 people, but I believe this is a very exaggerated figure, and, probably, the inhabitants now under British rule do not amount to more than 80,000. They claim practically the whole territory as their private property, and it seems to me that the claim must be admitted, as far as the surface soil is concerned, but not as regards mining rights, and the Government should absolutely reserve all water rights of every description. The local authorities think that about 80 acres of hill- top might be claimed as Government land, but such an area is hardly worth mention. If, hereafter, an allotment survey is made and claimants do not pay the taxes due on the lands they assert to be their property, the Government may be able to establish a claim to a portion of the uncultivated area. The problematical gain is not worth the certain cost of the survey, against which, and the consequent re-assessment, there would be a strong local feeling.

4. There are no cart roads or public works of any sort in the territory, but on the mainland there are mule tracks which answer the purposes of such a poor dis- trict, though, in some cases, the worst parts on these tracks might, with advantage, be improved at a small expense. The old road from Weihaiwei to Chifu has fallen into great disrepair, and if that part in the British territory were put to rights the much

• Not reproducesi.

51

The

longer section in Chinese territory would be left as it is, lest a really good road should draw any trade from the Chinese seaport to the British port of Weihaiwei. Royal Engineers have already built all the roads which seem to be necessary on the island, and their maintenance and that of the streets of the island town is a small matter, the cost of which should be met from the island revenues.

5. There is only one well-to-do Chinese family in the Weihaiwei territory, but most of its property is beyond our boundary. There is a so-called "city" on the shore of the mainland opposite Liu Kung Tau; it is a miserable place, containing about 1,500 inhabitants, a few poor shops, some 200 to 300 small private houses, a temple, a police magistrate, a petty military officer, and a considerable quantity of waste land. Then there are the villages, large and small, and in these live practically all the inhabitants of the territory; they are, excepting a few small shopkeepers, agri- culturalists. With all the care and attention that an over-large population can give to it, the land produces only potatoes, pea nuts, barley, millet, and vegetables. The country suffers frequently from drought, and occasionally from floods. tung is one of the poorest Provinces in China; Wen Teng and Yung Cheng, in which districts of the Teng Chow Prefecture lie the ceded territory, are the very poorest parts of the Province. Every village contains a number of labourers, who own neither land, nor houses, nor cattle; and these people depend for existence on em- ployment by landowners and others. It costs the Shantung labourers 6 to 8 cents

a day to live, and in bad times they will work for victuals only.

Shan-

6. There are a few fishermen in the territory, and their boats as well as the junks, which do a small coast trade from Weihaiwei City, pay a boat licence fee. Salt is exceedingly cheap, for it can be made at several places on the coast, and there is no salt tax.

The people are too poor to consume wine or spirits, but they smoke as much Chinese tobacco (from Kuantung) as they can afford to buy. The only gambling is done in the Chinese city of Weihaiwei, where, at present, the British authorities have no jurisdiction.

7. There are said to be minerals in the territory, and many people are anxious to prospect and if possible work gold, coal, galena (for silver and lead), tin, and iron. It seems extremely doubtful whether any of these minerals exist in payable quanti- ties. Personally I do not believe that any mining enterprise in the Weihaiwei terri- tory will succeed, but those who are ready to make the experiment should be given the opportunity of doing so at once. ̧ All that is wanted are some very simple mining rules, and the authorities must see that the surface owners are settled with before mining operations begin. I advised the Civil Commissioner to begin by charging a royalty not exceeding 5 per cent. on gold and not exceeding 10 per cent. ad valorem on other minerals. If any form of mining succeeds, proper regulations must be intro- duced and the scale of royalty can then be revised." The most satisfactory plan is to fix the royalty in accordance with a sliding scale, where there is a certain ratio between the market price of the metal and the royalty, so that the royalty is small when the price is low, and rises with a rising market.

8. Before considering the question of administration and establishment, it is necessary to understand these general conditions, as the present and prospective revenue of the territory depend on them. Briefly then, there is an island (Liu Kung) belonging wholly to the Government, purchased at a cost of £25,000, and I propose to consider its administration as a question apart.

There is a strip of mainland in the occupation and possession of (say) 80,000 Chinese agriculturalists. The soil is very poor and only produces just enough to keep the people alive. There are no exports except some salt fish to Formosa, and the imports are limited to sugar, tobacco, paper, and timber. Beyond this there

is no trade and no prospect of any, unless the "wild silk" of the district, now col- lected at and exported from Chifu, should eventually be shipped from Weihaiwei There are a few fisher folk. There are no cart roads and no present use for them. The existence of minerals in paying quantities is not known, and very doubtful. The Government has contracted itself out of the right to charge import or export duties. or to construct railways from Weihaiwei Harbour to the interior of the Shantung Province.

9. Under all these circumstances it would be rash to anticipate any such de- velopment of the territory as would greatly increase the revenue now available. The

5835

G 1