CO129-371 - Public Offices - 1910 — Page 535

C.O.

C. 0.

c. c. 532

[This Document is the Property of His Britannic Majesty's Governing

AFFAIRS OF CHINA..

CONFIDENTIAL.

[8720]

(No. 64.) Sir,

No. 1.

RECE

Rec 21 APR 10

[March 14.

SECTION 3.

Sir E. Goschen to Sir Edward Grey,-(Received March 14.)

Berlin, March 10, 1910. I HAVE the honour to report that the estimates for the protectorate of Kiaochow were discussed yesterday in the Budget Committee of the Reichstag.

The debate was, on the whole, favourable to the Government, and Admiral Tirpitz was able in most cases to dispose of the criticisms directed against the administration of the protectorate. Stated shortly, these criticisms were that the expenses of the protectorate, which amounted this year to 150,000,000 marks, were out of proportion to the results achieved; that sufficient attention was not paid to the wishes of the merchants engaged in business there, and that in fact their rights were more restricted and their interests less regarded than those of merchants of German nationality trading in the settlements of Shanghae and Canton; finally, that the often reiterated wish of the Kiaochow Chamber of Commerce to be given more independence of action had been totally disregarded.

It was further alleged that there were far too many officials in the protectorate, that the public buildings were in excess of what was required, and moreover built in a far too costly style, that the administration was run on extravagant lines, and that economy was urgently required in every department so as to reduce the amounts yearly contributed by the home Government to cover the expenses of the protectorate. On the other hand, the machinery for the administration of justice was compared favourably with that of other German colonies, and satisfaction was expressed at the establishment of a mortgage bank and a new high school. In this connection it was suggested that it would be well if those engaged in commerce and industry in the protectorate were themselves to do more to promote education by helping to establish schools in the hinterland of the colony, and it was pointed out that while the mission schools were doing good work they would be able to do much more if they were properly supported. The chief part of the criticisms came from the National Liberals and the Socialists, the latter declaring that the best thing, in view of the great expenses and small results, would be to give up the protectorate altogether. The Conservatives, on the other hand, gave unstinted praise to the administration, and said that though it was quite clear that from a military point of view the protectorate was valueless, it was nevertheless of the greatest value as a point from which to exercise influence on the future develop- ment of China. England, America, and Japan were all straining every nerve in that direction, and Germany ought to be thankful to the Minister of Marine and the officials under him for having administered Kiaochow in such a manner as to make it a model of German culture and civilisation.

Admiral Tirpitz denied that any extravagance existed in the administration of the protectorate. The expenditure of the year was not 150,000,000 but 130,000,000. The greatest economy had been observed, and the sums contributed by the home Government were year by year steadily decreasing, and the committee might be sure that autonomy in local affairs would be given at the earliest moment possible. He then made a short statement with regard to the economic development of the protectorate, pointing out that the import trade had considerably increased during the last quarter, that the big steam-ship companies were paying more and more attention to it, and that a considerable quantity of railway material had already been landed there for the new Tien-tsin--Pukow line. That, in fact, without Tsingtau Germany would not have been able to push her way into the Chinese railway business so quickly and so success- fully as she had done. For this reason they had built the magnificent harbour, now admitted to be one of the best in the world. It was more important to get a start of some years in the matter of influencing the future economic development of China than to economise a few thousand marks. He added that the opinion of foreigners respecting the work done by Germany in the protectorate was most favourable, and that it had been said that Kiaochow bid fair to become the Shanghae of the north. After going into detail as to the public works constructed, and now under construction, in the protectorate, he said that the Government were doing all in their power to promote

(2675 6-3]

This Document is the Property of His Britannic Majesty's Goverment

IREC

REGE 21 APR 10)

AFFAIRS OF CHINA.

lif

CONFIDENTIAL.

[8306]

Sir,

No. 1.

[March 16.]

SECTION 1,

Sir Edward Grey to the Portuguese Chargé d'Affaires.

Foreign Office, March 16, 1910,

I HAVE the honour to acknowledge the receipt of your note of the 7th instant, in which you draw my attention to further acts of aggression on the part of the Chinese in the disputed districts of Macao, and to inform you that a copy of your communication will be sent to His Majesty's Minister at Peking via Siberia on the 19th instant.

In the meantime a telegram has been addressed to him enquiring when the Chinese Minister to France is expected to arrive in Peking.

I am, &c.

[2675 q-1]

E. GREY.

.....