Directory_and_Chronicle_1937 — Page 513

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TSINGTAO (KIAOCHAU)

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While Klaochau was in German occupation, the special attention of the Administration was, devoted to agricultural, commercial and mining deve lopment in the Protectorate and Shantung. The local administration con sisted of a Council, composed of all the heads of the several administrative departments under the personal supervision of the Governor and four mem“ bers chosen from the civil population and appointed for two years. The Pro-, tectorate developed to an unlooked for extent under this system of admini. stration, which enabled all the vital question's at issue, such as legal rights, landed properties, land-tax assessment, school and church matters, to be sat- isfactorily settled. The object of the Administration in dealing with thei land question was to secure for every settler the lasting possession of his plot, thereby opposing unhealthy land speculation. Tsingtao, on the 2nd Septem- ber, 1898, was declared a free port. The harbour had all the advantages of a Treaty port, and as a free port especially recommended itself as an emory porium, since the merchant could there store, free of duty, his wares from!" abroad or his raw materials brought from the interior of China. The Chinese import duties were at first levied only on goods brought to Tsingtao by' sea, when they were transported beyond the borders of the Protectorate into Chinese territory. The Chinese export duties were at first levied only on goods brought from the interior of China, when they were shipped, from the German Protectorate to any other place. But in December 1905

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ceased to be force whereby Tsingtao free port, and the Imperial Maritime Customs began to collect duties there as well as all the other Treaty ports of China. the Convention stipulated that 20 per cent of the import duty collected at Tsingtao should be paid to the Imperial German Government. The Com- missioner of Customs in his report for 1906 commented on the arrangement as follows "The principal object of the arrangement, which, moreover, afforded the opportunity of a political rapprochement and material conces sions for mutual benefit on both sides,"was the creation and promotion of trade and commerce between the Pachtgebiet and the Chinese hinterland. The results of the first epoch have conclusively proved the wisdom of this novel arrangement: Under it trade arveloped beyond expectation and rose from a value of Taels 2,000,000 in 1899 o Tis. 22,000,000 in 1905, and Tsingtao, the former dilapidated fishing village, grew. into a handsome city with a flourishing mercantile community and a considerable number of manufactur- 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, o 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 consequent 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 a considerable increase in trade

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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 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 ino 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 Kiaochali is an extensive inlet two miles north-west of Cape Jaeschke 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 promontory 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

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