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"It need not be a transfer of territory, but a 'lease, say for ninety-nine years. This would save China's 'face, and not disturb the powers." Hence a "lease" was prepared for all the territory bounded in a semi-circle drawn fifteen miles from Kiau-chau bay a goodly piece in all conscience. Then came pourparlers for greater German authority, and more territory.

Kiau-chau represents the cleverest feat of colony-building the world has seen since the great powers declared a closure to land-grabbing in the East. When some German missionaries were murdered a few years since in China, the Kaiser, ever an opportunist, was justly angry, and Pekin shuddered at the possibility of national castigation.

What of the German colony in China Kiau-chau, on the east coast of the Shan-tung peninsula, whose forts frown upon the Yellow Sea? Is there anything like it, strategically and trade wise, in the East?

Already events had proved that Rupert Wilmshurst's statement was well-founded. In her African colonies, in Kiau-Chau, and elsewhere for years past Germany had been assiduously preparing for The Day.

England was to give Wei-haiwei back to China should Russia retire or be driven from Port Arthur, but has not done so. In all probability Germany, as well as Great Britain, is located on the Yellow Sea under a tenure that will be found to be permanent. Kiau-chau harbor is one of the most spacious and best protected on the coast of China.

When the Kaiser's glance falls upon the map of Kiau-chau, and he recalls the ease with which he segregated from Pekin's rule a goodly piece of old China, he may be irreverently moved to the extent of again snapping his fingers at the Monroe Doctrine, and at millions of simple Africans who refuse to eat German foods and wear not a stitch of German fabrics.

There are 3,000 Europeans, almost exclusively Germans, in William II's capital on Kiau-chau Bay. Soldiers and officials predominate, of course, but merchant and industrial experts are in the pioneer band in conspicuous number. And what of the "hinterland," compassed by the 45-mile semicircle, dotted with thirty odd native towns, the whole having a population of 1,200,000?

The acquiescence in Japanese demands for Kiau-Chau was clearly dictated by expediency rather than by justice. Austria, reduced in size and bereft of material resources, was cut off from the sea and refused the possibility of joining with Germany.

This amounted in substance to saying farewell on China's part to a slice of domain in all more than twice the size of the state of Rhode Island. The "sphere of influence," so-called, measures 2,750 square miles. Germany was given as well the equivalent of sovereignty over the harbor of Kiau-chau, no end of mining and railway rights, and other privileges. The lease dates from March 6th, 1898.

The whole is a magnificent piece of propagandism, surely. And what is back of it? What is the purpose of the appropriation of 14,000,000 marks for Kiau-chau in last year's official budget of the German government? Trade, little else; and Trade spelled best with a large T. Kiau-chau is a free port, like Hamburg.