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TSINGTAO (KIAOCHAU)
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ing establishments, giving promise of good profits and further development. Its success emboldened the merchants, foreign and Chinese, to ask for, and the Government to agree to, going a step further and arranging for the limitation of the free area, which formerly comprised the whole Pachtgebiet, to the harbour, on much the same lines as the German free ports Hamburg and Bremen. The chief advantage of this step lies in the removal of Custom control from the railway stations to the free area, and the oonsequent free- dom of goods and passengers to pass in and out, from and to the hinterland, without hindrance or control of any kind a traffic simplification from which raconsiderable increase in trade was expected." The new arrangement inspired confidence in the stability and future of the port and attracted artisans, traders, and wealthy Chinese firms, which last, hitherto dealing with Chefoo, had until now kept aloof from the place. The total
The total value of trade increased from Hk. Tls: 30,700,000 in 1906 to Hk. Tls. 39,700,000 in 1909, and reached a total of Hk. Tls 56,330,321 for the year 1912, or an in- crease of 20% over the previous year, notwithstanding the disadvantageous conditions for trade caused, by the revolutionary troubles in China,
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The Bay of Kiaochau is an extensive inlet two miles north-west of Cape Jeschke The entrance is not more than 1 miles across, the east side being a low promontory with rocky shores, with the new town of Tsingtao (“green island," from a small grassy island close to the land) about two miles from the point of the peninsula. On the west side of the entrance is another proniontory with hills rising to about 600 feet. The shore here is rocky, and dangerous on the west side, but on the east side is a good stretch of sandy beacli. The bay is so large that the land at the head can only just be seen from the entrance (about 15 to 20 miles away), and the water gradually gets shallower as the north side of the bay is approached. The old Chinese Kiaochau city stands at the north-west corner of the bay about 5 miles from the sea. At Tsingtao there are two anchorages for big ships; the larger and better one is round the point of the east promontory, on the north side, and the other, smaller one, on the south side. A new mole was opened on March 6th, 1904, which accommodates five vessels with berths. A second mole was opened a few months later, and a third for kerosene ships was subsequently constructed. They have direct connection with the railway. About 20 ships can be berthed simultaneously in the harbour.
The hills, in former days merely bare rocks of granite and porphyry, are now clad in fresh green owing to an extensive scheme of afforestation, which was decided upon in the early days of the colony: The soil of the valleys between the ranges and the plain country on the north-east is alluvial and very fertile, and is carefully cultivated. Wheat, barley, beans, millet, maize, and many other grains in smaller quantities are grown. The foreign residential quarter at Tsingtao lias been well laid out, and there are some good foreign hotels. The first sod of the Shantung Railway was cut by Prince Henry of Prussia in October, 1899, and the line to Tsinanfu was opened on the 1st June, 1904. It has done a prosperous business from the day it was opened.
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The wireless installation at the Signal Berg, originally built by the Germans, was removed by the Japanese naval authorities in June, 19 1, but a powerful new wireless station has been established by the Japanese military authorities at Taisichen. It is available to the public for urgent" telegrams. A thoroughly equipped observatory was opened in January, 1912, with funds supplied by the Union of German Navy Leagues abroad. A Boys' Middle school, built at a cost of Yen 228,000, now stands where the Germans had erected an aero-shed on the western slope of the Yamen Forts. The port came under the control of the National Government on the 15th April, 1929, and was officially proclaimed to be a special area on the 1st May. The new municipality has been active in improving local conditions. In May, 1929, a radiogram service was made available for commercial use, roads in general were kept in a good state of repair, and considerable improvements, in street-lighting were also carried out. The Public Utility Department enlarged its water reservoir in August, 1929, and the in- stallation of an automatic telephone system was completed in the same year. The temperate climate and the excellent beach have brought Tsingtao into prominence as a suminer resort."
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TRADE IN 1931
Tsingtao was, during 1931 spared the dislocation inseparable from civil disorders, and railway communication with Tsinanfu was maintained without interruption. The anti-Japanese boycott campaign hardly effected Tsingtao and commercial relations with Japan remained almost normal. There were good harvests of cotton,
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