But China was not yet at the end of her troubles. In
1897 when two German priests were murdered by a mob in
Shantung, the Kaiser Wilhelm's Admiral without sending an
ultimatum or any notification to Emperor Kuang-su seized

1 See British Blue Book, China, no. i, 1899, pp. 12-30.
32 RAILWAY PROBLEMS IN CHINA [260

Kiaochow Bay, town and district, and the German Govern-
ment refused to evacuate until Qiina vi^as hectored into
agreeing, in a formal convention on March 8, 1898, tO' com-
pensation to the families of the murdered missionaries, an
amount to reimburse Germany for the cost of occupation,
the degradation of the Governor of Shantung, the ninety-
nine years' lease of the country occupied, and the granting
of mining, railway and exclusive financial privileges
throughout the whole valuable province where Confucius,
the Greatest Teacher of China, was born. By virtue of
this convention Germany obtained the right to build a tri-
angular railway system in Shantung. German capitalists
also obtained the right of preference to find capital for any
scheme for the development of Shantung made by the
Chinese Government or citizens, and German-made ma-
terials were guaranteed a preference over all others.^

The recognition of the occupation of Kiaochow and the
concessions of railways and mines to Germany accelerated
the aggressive actions of the other covetous Powers. Russia
made a more significant advance from North Manchuria
and on March 27, 1898, secured a twenty-five years' lease
of Port Arthur and Talienwan, and compelled the Manchu
Court to permit the Chinese Eastern Railway Company " to
extend a branch line from a certain point (Harbin) on
the main line to these two ports.
