The record-union., 1898-01-06
Will Retain Possession of KiaOChau
Bay Territory.
The CeSSion in the Form of a Lease Ex-
tending for Fifty Years.
Given Liberty to Erect on the
Ceded Territory All Necessary
Buildings and Establishments,
and to Take Measures REQUIRED
for Their Protection-Repor
Current That the French VIII
Occupy Hainan Island.

BERLIN, Jan. 5.-The "Reicbsan-
zelSer' this evening announces that ac
cording to a telegram from Pekin an
understanding has been reached he
tween Germany and China regarding
the cession of Kiaochau Bay TO the
1ormer. The arrangement. it is added.
IS substantially as follows:
1t is intended by the cessfon to render
possible for Germany the fulfilIment Of
her just wish for the possession. in the
same way as other powers, of a base of
trade and navigation in Chinese waters.
The cession of Kiaochau Bay to Ger
many takes the form of a lease for an
indefinite time. Germany is at liberty
to erect on the ceded territory all the
necessary buildings and establish
ments, and to take the measures re-
quired for their protection.
Continuing, the "Reichsanzeiger''
says: THE ceded territory comprises
the whole of the inner basin of Kiao-
chau Bay as far as the high water line,
the larger headlands situated south and
north Of the entrance of the bay to the
point where they are naturally bounded
by mountain ranges. and also the
islands situated within and fronting the
bay
No obstacles are to be raised by
China to any measures Germany deems
necessary for the regulation of the water
courses. China has transferred to Ger
many for period not stated in the tele-
gram, a lease of sovereign rights over
the ceded territory.
If for any cause Kiaochau Bay
should prove unsuitable for the OBJ
jects Germany has in view, China, after
arriving at an understanding with Ger
many, will cede another piece of ter
ritory on the coast which Germany may
regard as more suitable for her pur-
poses.''
LEASE RUNS FOR FIFTY YEARS.
LONDON, Jan. 5.-A dispatch to the
Times" from Pekin dated yesterday
"wednesday says that Germany has
taken lease of Kiaochau Bay for fifty
years. 1t says also that the report is
current there that a French occupa-
ton of Hainan Island is imminent
THE SITUATION IMPROVING.
LONDON, Jan. 5.-There is a general
feeling in England, and it is reflected on
the Stock Exchange, that the situation
in the far East is improving. 1t is be-
lieved the proposed Chinese loan of
f16,000,000 viii be guaranteed by the
British Government.
The "Pau Mall Gazette" this after
roon refers to the "ascendancy of mon
ey over the mailed fist" and says:
Great Britains vessels are anchored
off Chemulpo and at Port Arthur. This
is quietly implying that Great Britain
will have voice in future arrange
ments. Further. the latest kilograms
clearly indicate that she has plenty OF
friends
The Pail Mall Gazette" says: aside
from Japan, nations like the United
States, whose interests are purely com
mercial, are well disposed towards our
Government, and are opposed to trade
exclusiveness."
Ernest Terah Hooley. who negotiat-
ed with China simultaneously with the
J. Pierpont Morgan and other syndi-
Gates. is not concerned in the present
loan
BROWN MAINTAINS FIRM HOLD.
LONDON, Jan. Especial dispatches
from Shanghai to-day say that j. Nc
Leavy Brown, the British Corean Gus
toms Agent at Seoul, maintains frm
hold on his post, and that NJ AleXieff,
the Russian agent, who had been en-
deavoring to supplant him, has been
unable to obtain control of the finances,
owing to the fact that all the funds
are vested in Browns name in the
Hongkong Bank of Shanghai, which in
stftution honors Browns signature only.
The negotiations between Sir Claude
Mcdonald. the British Minister at Pc
kin. and the Tsung Lyamen with refer
ence to the questions arising from the
Russian occupation Of Port Arthur are
proceeding.
The idea of an alliance with Great
Britain is reported to have excited in
tense enthusiasm in Japan. The Mar
quis Ito's Cabinet, it is added, will en-
deavor to promote an Anglo-Japanese
alliance.
RUSSIA BUYING ARMS.
NEW HAVEN Comm, Jan. 5.-An
order for 10000 of the latest pattern of
military rifles and 100000 rounds Of
ammunition, has been placed with the
Winchester Arms Company, through it's
San Francisco office. They are to be
shipped at the earliest possible mo-
ment. The order comes from the Rus
sian Government the company having
had an agent negotiating with that
Government for seyeral weeks
SAN FRANCISCO, Jan. 5.-At the To-
cal establishment of the Winchester Re-
peating Arms Company inquiry was
made this morning as to the truth of
the New Haven dispatch, but nothing
further could be ascertained in regard
to the matter. Mr.. Smith, speaking
for the company, in the absence of the
manager, stated that nothing had as
vet been heard here in regard to the al
legged contract.
.sI only hope it is true" he said, "as
we would be very pleased to fill such all
order But our manager is absent in
the East just now, and whatever he or
the main house may know about the re-
ported deal, we know nothing here.
But repeat, hope that it may turn
out to be correct"