KIAOCHOW

BAY  , a large inlet on the south side of the promontory of Shantung, in China . It was seized in November 1897 by the German fleet, nominally to secure reparation for the murder of two German missionaries in the province of Shantung . In the negotiations which followed, it was arranged that the bay and the land on both sides of the entrance within certain defined lines should be leased to Germany for 99 years . During the continuance of the lease Germany exercises all the rights of territorial sovereignty, including the right to erect fortifications . The area leased is about 117 sq. m., and over a further area, comprising a zone of some 32 m., measured from any point on the shore of the bay, the Chinese government may not issue any ordinances without the consent of Germany . The native population in the ceded area is about 6o,000 . The German government in 1899 declared Kiaochow a free port . By arrangement with the Chinese government a branch of the Imperial maritimecustoms has been established there for the collection of duties upon goods coming from or going to the interior, in accordance with the general treaty tariff . Trade centres at Ts'ingtao, a town within the bay . The country in the neighbourhood is mountainous and bare, but the lowlands are well cultivated . Ts'ingtao is connected by railway with Chinan Fu, the capital of the province; a continuation of the same line provides for a junction with the main Lu-Han (Peking-Hankow) railway . The value of the trade of the port during 1904 was £2,712,145 (£I,8o8,113 imports and £904,032 exports) .