(5) German concessions.—In addition to the Tiendsin-C'hing-kiang line, in which. as already stated, the Germans are interested together with the English, the Germans have secured exclu sive concessions in the entire Province of Shan tung, where they are building a triammlar line to connect Kiao-chau with Tsi-nan, on the lIo-ang-ho, in such manner as to inclose all the valuable mining region of Shantung. This line is intended to serve at the same time as an outlet for the mineral products of Shansi and llo-nan, and may be extended later so as to take in the entire region a long the llo-ang-ho, in which ease the German sphere will serve as a 'buffer State' between the Russian and British territories.
In nearly all of these foreign concessions tlw Chinese Government not only reserves for itself the ultimate reversion of the railway'lines and their equipment without any compensation, but also the lion's share of the profits. To reduce the opportunities for foreign interference to a miniumum, provision is made for Chinese control in all eases. The foreign syndicate obtaining a concession is permitted only to construct and operate the road. The land on which the road is built, or has to be built, is purchased by a syndicate of Chinese subjects in whose hands is also vested the financial control of the road.
Provision is made even ,for the ultimate native control of the operation of the road, as well, by requiring every foreign syndicate to maintain a school for the instruction of young Chinese in the sciences and arts pertaining to the business (railroad or mining as the ease may be). The foreign syndicate receives 5 per cent. on the capital invested and one-fifth of the net profits, the remaining four-fifths being equally divided be tween time native syndicate and the Chinese Gov ernment. Thus the Government secures 40 per cent. of the net profits and the final reversion of the road, in addition to the privilege of trans porting troops and ammunition at half rates.
The telegraph has been extended somewhat rapidly, the mileage of wire being 14,000 miles, with 250 offices, the lines constructed and oper ated mainly by the Chinese Government. The postal service, initiated by the Government in 1897, is operated by carts and runners. In 1902 there were more than 400 miles of railway in operation in China proper.