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PUBLIC RECORD OFFICE

Reference :-

TLC.O. 882

linduillimi.

6

PUBLIC RECORD OFFICE, LONDON

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

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city that the worst effects of this inconvenient position are avoided. The Order of Council (paragraph 2) gives power (though no authority for it is quoted) to the British Authorities to exercise such jurisdiction over the city as may be necessary to carry out military and naval requirements or to preserve the peace and good government of the territory.

Several bad characters and thieves have been banished in 1900 and 1901 from the city by the Sub-Magistrate at the request of the Commissioner, the opium shops and brothels there have been registered and put under stricter control, and the streets of the town are now kept clean.

These improvements are chiefly due to the influence of the District Magistrate, Chu of Wen-Teng, who is a frequent visitor to the city and well disposed towards the local Government. Although no serious trouble is now experienced over the city, the present imperium in imperio is naturally unsatisfactory. Law cases between Chinese living in the city and those living in the British area are frequent, and cause much inconvenience and trouble. Large numbers of the Chinese in the city own fields, grave-yards, and shops in the British territory, and have continually to apply to the British Magistrate about their affairs, so that they come as much under British as under Chinese jurisdiction.

The largest market is held by the Chinese from the British area within the city of Wei-hai-wei four times a month. It would be unwise to interfere with this ancient custom, but it is unfortunate, because it tends to lead the Chinese living under British jurisdiction to consider themselves to some extent still under Chinese juris- diction.

The bearing of the Chinese in the city towards the British has greatly improved since 1900, and no open hostility is now displayed. There are only two Chinese officials in the city at present. One is a Sub-Magistrate (or Hsiin Chien) and the other is a Military Sergeant (or Pa Tsung).* The Sub-Magistrate receives an allowance of $40 a month from the British Government for giving assistance to the British Magistrate in all matters connected with the city.

Salt Taxation.

58. During the Chinese Administration, there were two villages, called Sun- Chia-Tan and Yang-Chia-Tan, licensed by Government to make salt. monopoly the two villages paid a joint rent of $25 per annum.

For this cheap in this part of Shantung, averaging two cash a catty, that this monopoly cannot But salt is sold so be made to pay.

It is imported in large quantities overland and by sea from the Ning Hai and Yung-Cheng district.

Salt here is made by evaporation, and its production is only remunerative on a very large scale, and the local Chinese here have not sufficient capital for this. In 1900, owing to trouble and law suits between the two villages mentioned and the fish curers at Mahto, the British Authorities abolished the salt tax (it was about $25 a year) on the ground that it was not worth the trouble it caused to collect.

Postal Arrangements.

59. Considerable difficulty is experienced in receiving and despatching mails in this Settlement.

The present arrangements are as follows:-

There is a branch of the British Hong-Kong Post Office established at Liu-kung- Tao. The postal agent is a military clerk who makes use of the office of the Com- missioner as a Post Office. This agent is paid a small allowance by the Hong-Kong Government and he has a small staff to collect and distribute letters and parcels. At the same time, there is a branch of the Chinese Imperial Post Office established here with its main office at Liu-Kung-Tao, and with a branch at Mahto on the mainland. The Chinese Post Office undoubtedly competes adversely with the Hong-Kong branch, but it is a convenience in that letters can be sent through it to other Treaty Ports in ('hina, where there are no branches of the Hong-Kong Post Office, and in that the Chinese make use of it largely for posting letters to inland districts.

The Chiese Post Office has an efficient staff, and is well managed, but even now it is conducted at a loss, and it is doubtful whether it will continue to remain open

• Now withdrawn, April, 1912.

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now that the Hong-Kong Post has joined the Penny Postal Union, and is charging in Wei-hai-wei only four cents for half an ounce, as against ten cents charged by the Chinese Post Office.

60. Proposals were made by the Commissioner in 1901 to establish an inde- pendent Post Office, but nothing has yet been finally settled, although the Postmaster- General in London approved of the principle. It is, however, almost certain that the upkeep of such a Post Office would result in a loss, especially since the War Office has decided to withdraw all military forces from Wei-hai-wei. The postal dues charge- able on the Colony for transit of mails from Wei-hai-wci to Europe and outwards from Shanghai to Wei-hai-wei, either direct or by connection with Chefoo, would be almost prohibitive. The Government receives $10,000 per annum as a mail subsidy to charter a steamer to keep up communication between Chefoo and Wei-hai-wei. The present steamer cannot keep up communication regularly, because it is too small, and only fit to go to sea in fine weather.

If, however, a better steamer is put on between Chefoo and Wei-hai-wei and runs daily, there will be little trouble with mails in future, and it would seem best to allow things to remain as they are in preference to establishing a British Post

Office.

Telegraphic Communication.

61. A submarine cable has been constructed by the Eastern Extension Telegraph Company between Chefoo and Wei-hai-wei. It cost £16,000 to lay this cable, and the Company, under an agreement made with His Majesty's Government in 1901, engages to undertake the working of the line for an annual payment of £4,000. The upkeep and repair of the cable is to be paid for by the Home Government. This cable was found to be necessary in the late Boxer disturbances in North China. Previous to 1900 the overland wire of the Chinese Government Administration was alone avail- able for use north of Shanghai. In 1901, however, an agreement was made between the Eastern Extension Company and the Chinese Administration under which the Eastern Extension Company extended their Shanghai cable from Shanghai to Taku and Chefoo to meet the requirements of the British, Russian, and German Govern- ments. After this was accomplished, the local line from Chefoo to Wei-hai-wei was laid and commenced work in September, 1901. The telegraph line of the Chinese Administration runs overland through the leased territory to Chefoo. The office of the Chinese Telegraph Administration is in the walled city of Wei-hai-wei, and is a convenience to the British officers in Wei-hai-wei for communicating promptly with the Governor of the Province in Chinan.

Telephonic communication has been established between the island of Liu Kung and the mainland by a marine cable, and the 1st Chinese Regiment Barracks, the Hospital, and the quarters of the Assistant Commissioner are now being connected with this cable. It is proposed to extend this line to the local hotel and the bungalows used in the summer season by European visitors. This telephonic installation has been carried out by the Royal Engineers stationed here.

Wei-hai-wei compared with Hong-Kong as a free Port.

62. The fact that Wei-hai-wei is a free port does not help it yet. It is believed that possibly a little coal may be stored on the island if the Admiralty allow it, for the use of the British steamers that ply about New-Chwang, Chefoo, and Tientsin, as coal stored there would escape the new five per cent. import duty collected by the China customs at Chefoo where the coal used by these steamers is now stored. This is not yet, however, a fait accompli, and in other respects free trade does not and apparently cannot do anything for the Settlement. It has no internal trade and no exports or imports (except for local European wants) so that it practically makes no difference whether the port is a free one or whether customs are collected. It is not a port of call for ocean liners, and is never likely to be, and it has no local junk trade except a small fishing and salt shipping one.

No comparison can be justly made between Wei-hai-wei and Hong-Kong. Hong- Kong is one of the greatest shipping termini and ports of call in the world for all the great mail lines running east and west. Hong-Kong, too, as a great trading emporium, is an extension of China, a suburb of the city of Canton so to speak, which is one of the richest and most prosperous cities in the East.