CO129-382 - Public Offices - 1911 — Page 557

[This Document is the Property of His Britannic Majesty's Government.]

[B]

CO 10672

AFFAIRS OF CHINA.

REC Re 3 /PR

!

CONFIDENTIAL.

[March 13.]

SECTION 4.

[9091]

(No. 61.) Sir,

No. 1.

Sir E. Goschen to Sir Edward Grey.-(Received March 13.)

Berlin, March 9, 1911.

I HAVE the honour to forward herewith a despatch which I have received from Captain Watson, naval attaché to this embassy, relating to the debate in the Reichstag on the estimates for Kiao-chao.

I have, &c. (for the Ambassador),

RICHARD SEYMOUR.

Enclosure in No. 1.

(No. 7. Confidential.) Sir,

Captain Watson to Sir E. Goschen.

Berlin, March 7, 1911.

I HAVE the honour to forward summary of debate in Reichstag on estimates for Kiao-chao. The colony is under State Secretary for Navy for estimate purposes. Copies of the German Colonial estimates have been forwarded to the Admiralty.

2. From the debate it would appear that though progress in trade has been made, it does not seem that the colony can yet be regarded otherwise than as a military post and model Government colony.

In regard to its forming a port of entry of German goods into China, it would seem Hong Kong and Shanghai still prevent Kiao-chao from becoming a large forwarding port for German trade, though progress has undoubtedly been made in this respect owing to railway development.

3. It is noteworthy that the colony appears to pay its own expenses except military costs.

4. The idea of giving some form of self-government to the colony is interesting, Also the measures adopted for preventing spread of the plague.

I have, &c.

HUGH WATSON,

Captain and Naval Attaché.

Summary of Discussion in Reichstag on Kixo-chao Budget, February 17, 1911.

1. Subsequent to the navy estimates, the budget for Kiao-chao was taken in the Reichstag, this budget coming under the Secretary of State for the Navy.

Before discussing Kiao-chao, Deputy Nacken, of Centre party, expressed the obligation of those invited to visit dockyards last year to the Secretary of State for the Navy. He also stated the suggestions made by the members visiting had been followed; and alluded particularly to the adoption at Wilhelmshaven of mercantile book-keeping, and anticipated that all would be convinced next year by results of its advantages. States that for the first time a balance appears in the budget of one of the Imperial departments. A sub-committee of the budget committee is still occupied in drawing up suggestions.

2. In regard to Kiao-chao, he stated that trade of protectorate has grown to a gratifying extent. Colony pays its own expenses except military costs. Citizens of Tsingtau have extensive influence upon legal proceedings in the first and second courts. Development of the self-government of the citizens can no longer be delayed.

Results of the various department administrations, with the exception of the dockyard, are satisfactory. Gratifying to know that mercantile book-keeping has been adopted in these departments.

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