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In the Treaty all the rights at Kiao-Chau and in Shantung Province belonging to Germany are to be transferred without opposition to Japan, but Japan voluntarily engages, in answer to the questions put in Conference, that it will be her immediate policy to Quote hand back the surveyed peninsula in full sovereignty to China, retaining only the economic privileges granted to Germany and the right to establish a settlement under the usual conditions at Tsingtau.

A 3600 ton ship with a speed of 25 knots, the Emden left Kiao-chau on August 6, met von Spee's cruisers in the Ladrones on the 12th, and on September 10 appeared most unexpectedly on the west side of the Bay of Bengal. Here she sank five British merchantmen, all following the customary route with lights aglow.

Despite the paramount importance of strategic position, we must not forget that a naval base should have sufficient military strength to be able to hold out for a long time against hostile operations, as many bases, notably Gibraltar and Port Arthur, have done, without the assistance of the fleet. The German base at Kiao-chau held out for more than two months in 1914, without any external aid.

In fact it made such an impression on the Japanese themselves, that one of the delegates called upon me the following day and attempted to offset the effect by declaring that the United States, since it had not promised to support Japan's contention, would be blamed if Kiao-Chau was returned directly to China. He added that there was intense feeling in Japan in regard to the matter.