On arriving at Kiau-Chau with his squadron, Prince Henry wrapped the mailed fist in a parchment covering, demanding the "lease" of the town and the neighbouring district to Germany for a period of ninety-nine years; and, divining that Germany could rely on the support of Russia, the Court of Pekin had no option but to bow to the inevitable, and the lease of the territory demanded was signed on the 6th March, 1898. The Shantung Peninsula, a maritime province of China on the Yellow Sea, is the most densely inhabited part of China, and is celebrated as the native province of Confucius and therefore sacred to both Chinese and Japanese followers of the dictate of the sage's analects. The peninsula is a mass of mountain ranges which rise to a height of 5,000 feet. The ranges are intersected by fertile valleys which provide sustenance at a minimum expenditure of toil. Kiau-Chau is a splendid harbour and, in regard to Pekin, of great strategical importance. The German occupation of the harbour and as much of the surrounding territory as they could bring under their influence was, they declared, only to provide a gateway to China and an open door for German trade. The trade did not, however, progress under German administration of the territory. There were no means of transport, and until railways could be constructed the port could only supply and draw from its immediate neighbourhood. Only Germans frequented Kiau-Chau and trade decreased, as the natives cordially disliked the inquisitorial ways of the official system. The chief value of Shantung is in its mineral deposits--principally coal, and coal easily takes the first place amongst articles of export. Iron ore, gold, galena (lead and silver), and copper are found in considerable quantities. The principal agricultural products are wheat, millet, Indian corn, pulse, arrowroot, castor-oil, vegetables, and fruit. Wax is a considerable article of trade, while seri-culture (silk) forms an important industry. Silkworms are fed on mulberry, oak, lettuce, or vine leaves; and the nature and quality of the silk depends upon the character of the food. The worms fed on mulberry and lettuce leaves produce the lighter forms of silk, those on vine leaves a silk of a deeper yellow colour verging on red, while the oak-leaf-fed worms produce the well-known pongee, chifu or Shantung silks. This latter is not as fine as the mulberry or lettuce silk but is of more practical use and of better wear. The soya bean, cultivated so extensively and profitably in Japan, the oil cake made therefrom, and cotton are also produced by the Chinese in the Shantung province. The exports from Kiau-Chau, according to Chinese statistics, amounted in 1912 to about £1,250,000; while the exports reached £1,750,000. Germany brought under her sway in the Shantung Peninsula an area of about 120 square miles.