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Germany at once seized Kiao-chau, and in March, 1898, extorted a 99-year lease of the port, with exclusive development privileges throughout the peninsula of Shantung.

In the Treaty of Versailles with Germany the readjustment of the German boundaries, by which the sovereignty over millions of persons of German blood was transferred to the new states of Poland and Czecho-Slovakia, and the practical cession to the Empire of Japan of the port of Kiao-Chau and control over the economic life of the Province of Shantung are striking examples of the abandonment of the principle.

As far as is known, she made no protest against the action of Germany in a district to which she herself had laid claim. It is reasonable, on more grounds than one, to suppose that the two Powers had come to some understanding, Russia conceding Kiao-chau to the Kaiser, provided that she herself gained Port Arthur and its peninsula.

Two weeks after the outbreak of the World War, Japan had addressed an ultimatum to Germany to the effect that she immediately withdraw all German vessels from Chinese and Japanese waters and deliver not later than September 15 "to the Imperial Japanese authorities without condition or compensation the entire leased territory of Kiao-chau with a view to the eventual restoration of the same to China."

The important point to be noted in this demand is that Japan did not consider that the occupation of Kiao-Chau and the seizure of the German concessions transferred title to her, but looked forward to a future transfer by treaty. The "Twenty-one Demands" were urged with persistency by the Japanese Government and finally took the form of an ultimatum as to all but Group V of the "Demands."

Jugo-Slavia, and Anglo-Franco-American alliance, port, erected, See also Fiume. Kato, Baron, and Shantung, Kiao-Chau. See Shantung. Kiel Canal, internationalization, Koo, V.K. Wellington, argument on Shantung, Labor article, in Wilson's original draft, in Treaty,

My dear old lad, the Japs had scoffed all the beer in Kiao-Chau before I got into the main street...." "... I had a Midshipman up with me as observer aged 16 and 4 months precisely.... Those machines scared the Arabs badly...." "... Just a sharpened bayonet. You slung it round your neck when you were swimming.... Only had to use it once ... nasty sticky job.

The principal subjects, concerning which President Wilson and I were in marked disagreement, were the following: His presence in Paris during the peace negotiations and especially his presence there as a delegate to the Peace Conference; the fundamental principles of the constitution and functions of a League of Nations as proposed or advocated by him; the form of the organic act, known as the "Covenant," its elaborate character and its inclusion in the treaty restoring a state of peace; the treaty of defensive alliance with France; the necessity for a definite programme which the American Commissioners could follow in carrying on the negotiations; the employment of private interviews and confidential agreements in reaching settlements, a practice which gave color to the charge of "secret diplomacy"; and, lastly, the admission of the Japanese claims to possession of German treaty rights at Kiao-Chau and in the Province of Shantung.

In 1898 Germany secured a lease of Kiao-chau Bay across the Yellow Sea from Korea, which she at once fortified and where she proceeded to develop a port with the hope of commanding the trade of all that part of China. Russia in the same way secured, somewhat farther to the north, Port Arthur and Talien-wan, and proceeded to build Dalny as the commercial outlet of her growing railroad.

In fact, the prize of Kiao-chau, nearly within reach, now seemed to be snatched from his grasp by Kaiser Wilhelm. The details are well known. Two German subjects who were Roman Catholic missionaries in the Shan-tung province were barbarously murdered by Chinese ruffians on November 1, 1897.