KIAO-CHAU, or KIA0 CHOW, a Chinese walled city and the name of a German leased territory which since 1915 has been held by Japan. The territory lies around the shores of Kiao-Chau Bay on the east coast of the province of Shan-tung and the city lies outside the German sphere of in fluence. The bay is some 15 miles from east to west and from north to south, and has deep water anchorages in its southeastern portion. The territory of Kiao-Chau was seized by Ger many in November 1897 in retaliation for the murder of two German missionaries by the Chinese, and in March 1898 Tsing-tau harbor, on the east of the bay, and the district adjoin ing, about 200 square miles, were transferred to Germany by treaty on a lease for 99 years. It was then declared a protectorate of the German Empire, placed under control of the navy de partment, and declared a free port. The terri tory comprises 33 townships, with a population of 192,000. Around the leased territory is a neutral zone, 2,500 square miles in area. Great improvements and construction works were then set on foot; a sum of $7,000,000 was ex pended on the harbor of Tsing-Tau, a great floating dock being constructed. An excellent water supply, electric lighting and telephone service were introduced into the city. The city was placed in 1906 under the Chinese Maritime Customs, 20 per cent of the receipts to be handed over to the German authorities. A
railway was constructed from Tsing-Tau to Tsinang, 252 miles in length, through the Shan tung province, tapping a rich agricultural and mining section. The revenue of the protectorate in 1914 was f463,000, and expenditure B20,500. In 1913, 923 vessels cleared at Tsing-Tau (pop. 34,000), with a tonnage of 1,298,622 tons.
On 16 Aug. 1914, after the outbreak of the Great European War, Japan called upon the German authorities to deliver up the leased territory by the 15th of September, and on 23 August declared war. The investment began on 27 August, and after a heroic resistance on the part of the German garrison, the city sur rendered to the combined Japanese and British forces on 7 November, and since that time it has been occupied by the Japanese. On 25 May 1915, it was announced that, following on negotiations between China and Japan, the terri tory would be returned to China on the con clusion of peace, on condition that the German privileges in the leased territory be transferred to Japan. The Chinese Maritime Customs was re-opened on 6 Aug. 1915. The number of Japanese residents on 20 April 1915, exclusive of military, was 9,264.