the treaty was made. This incident was the murder of two German Roman Catholic missionaries, about four months previously, at the town which was the birthplace of Confucius, by Chinese political rioters who were members of anti-foreigner societies. Germany sent ships to Kiaochow Bay and landed marines, holding the bay as security for reparation.

The facts concerning the incident and its settlement are given in the correspondence between Sir Claude MacDonald, the British Minister to China, and Lord Salisbury, published in the Parliamentary Papers. The murder of the German priests, as a political antiChristian and anti-foreigner act, and the complicity of the Governor of Shantung, were conclusively proved by the testimony of a third German priest who was attacked with the two others and who escaped. The naval action of Germany relieved Great Britain from carrying out a threat to send a punitive expedition into Shantung, as is shown by the following extract from a letter of Sir Claude MacDonald to Lord Salisbury, of December 1, 1897:

During the summer there were prevalent in this province rumors of the kidnapping of children of foreigners, which produced much excitement, and placed the missionaries in the interior in great danger. The Governor, in spite of much pressure, did nothing to suppress these rumors, and even by his attitude gave them tacit encouragement. After repeatedly calling the Yamên's attention to his conduct, I was at last obliged to desire them to warn him that if any serious incident occurred as a result of his anti-foreign spirit, he would find himself in jeopardy. This I did in a note so long ago as the 27th of July, and the result was, according to a report from His Majesty's council at Chefoo, that active measures were at length taken to check the rumors and the ferment thereupon subsided.

It is not possible at present to ascertain whether this agitation has indirectly led to the present outrage, but the Governor's attitude has been such as to induce full approval of the German demand for his dismissal.

That the sending of the three small German cruisers from Shanghai, where they had been lying, to Kiaochow Bay, had the acquiescence, if not the approval, of Great Britain, which, then as nów, controlled the coasts of China from Hong-Kong, is shown by the following extract from the same letter:

If the German occupation of Kiaochow is only used as a leverage for obtaining satisfactory reparation, . . . for the murder of German missionaries, the effect on the security of our own people will be of the best.

If, on the other hand, the German object is to secure Kiaochow as a naval station under cover of their demands for reparation, it is by no means clear that their acquisition of it will prejudice our interests.

The terms of the reparation settlement were agreed upon about two months before the treaty was signed. The Governor was degraded. The money reparation included compensation to the relatives of the murdered priests, damages for injury to the mission buildings, and a contribution to the building of mission chapels near the scene of the murder. The reparation-money was paid to the Roman Catholic authorities. Germany obtained, for itself and all foreign states, an Imperial tablet condemnatory of the anti-Christian and antiforeigner proceedings. The next year the Vatican granted to Germany the ecclesiastical protectorate over Roman Catholics in Shantung; this religious sphere of influence being subtracted from that of France, which had theretofore extended over all China.

The treaty stated that the Chinese Government regarded the occasion of the amicable closing of the reparation settlement as an appropriate one for giving a concrete evidence of its grateful recognition of friendship shown to it by Germany. Though repayment of the social obligation is thus put forward as the main inducement on the part of China in making the treaty, it is also stated, as further inducement, that China is desirous of "increasing the military preparedness of the Empire." The inducement on Germany's part is declared to be its desire to have, "like other powers, a place on the Chinese coast, under its own jurisdiction" —which desire China declares to be "justifiable." The inducement on the part of both Germany and China is declared to be a "mutual and reciprocal desire further to develop the economic and commercial relations between the citizens of the two states."

The treaty granted an extraterritorial port privilege within the area including Kiaochow Bay and its environs a land-and-water area about fifteen miles square -together with an extraterritorial foreign-settlement privilege on the shore of Kiaochow Bay. This area was leased to Germany for ninety-nine years "for the repair and equipment of ships, for the storage of materials and provisions for the same, and for other arrangements connected therewith." It was provided that Germany should "construct, at a suitable time, on the leased territory, fortifications for the protection of the buildings and the defense of the entrance to the harbor."

The German words concerning the leasehold grant were überlässt pachtweise vorläufig auf 99 Jahre. A literal translation of this phrase is "grants according to the analogy of leases [in German law), as a provisional or interlocutory measure (vorläufig) for ninety-nine years." It seems probable that by the use of the word

vorläufig, it was intended by the parties to make the lease subject to the terms of the international entente concerning spheres of influence in China, not only as that entente then existed but also as it should be varied in the future by mutual agreement of China and the powers.

It was also provided that "in order to avoid the possibility of conflicts, the Imperial Chinese Government will abstain from exercising rights of sovereignty in the ceded territory during the term of the lease.' China had thus the paramount sovereignty over the leased territory, and Germany a sovereignty subordinate to that of China and limited by the terms of the lease. China reserved to its citizens and shipping within the leased area the same rights as the citizens and shipping of other states.

Inasmuch as Germany's leasehold territory was a part of the coast border of China, it was agreed that Germany should take no action within that territory which would interfere with the unity of the Chinese tariff. Germany had thus the option to make a designated port of its leased territory a free port-which she did or to collect there the Chinese tariff and pay it to China.

In order that the relationship between Germany and China might be continued in case Germany should see fit to resign its leasehold privileges, it was provided that "should Germany at some future time express the wish to restore Kiaochow Bay to China before the expiration of the lease, China agrees to refund to Germany the expenditure she has incurred at Kiaochow, and to cede to Germany a more suitable port."

As incidental to the necessity of obtaining an adequate water-supply for the leased territory and enabling it to be defended without violating China's sovereignty, a zone of land thirty miles wide adjoin

ing the leased territory was by the treaty placed under a kind of partnership sovereignty (vereinbart). Within this zone, China expressly retained full sovereignty, but agreed "to abstain from taking any measures, or issuing any ordinances therein, without the previous consent of the German Government, and especially to place no obstacle in the way of any regulation of the watercourses which may prove to be necessary."

The second part of the treaty, headed "Railroad and Mining Concessions," was concerned solely with two specifically described railroad-and-mining concessions in Shantung. These were by the treaty definitely allotted to German-Chinese corporations to be formed for the purpose, in which the German and Chinese stockholders were to have equal rights and proportional representation in the directorate. Provisions were made to assure the protection of the German personnel of the working staff; and it was required that the work should be done, and the concessions operated, in conformity with the general regulations of China. The two railroads formed a branch to connect Kiaochow Bay with the proposed trunk line from Peking to Canton. This trunk line, when extended southward to the British railroad system in Burma and the French system in Indo-China, was to form a part of the southern Peking-to-Paris line which was to compete with the Peking-to-Paris line via the Manchurian and the Russian Trans-Siberian Railways. As respects the section of this trunk line in Shantung, the treaty gave no special concession to German or German-Chinese corporations. The mining privileges within a zone of twelve miles wide on either side of the German-Chinese branch line specified in the concession were also granted. These concessions were to be operated by German-Chinese corporations on the same terms as the railroad concession.