The railway to Tsinan is functioning, but mainly for military purposes. A service of one train to Tsinan and one from Tsinan per day is being maintained and, during the past two months or so, the line has been cut on two or three occasions by Chinese irregulars, thus disrupting the daily schedule. Due to military requirements, very little cargo and/or passengers are being carried. Foreigners desiring to travel to or - from Tsinan must present themselves at the Japanese Consulate for interrogation and if in the unlikely event that a permit is granted, it is passed on to the military authorities for their O.K. and, if granted, the permit is presented at the railway ticket office before the ticket is issued. Chinese desiring te use the railway. must be guaranteed by some responsible party.
Shortage of Rolling, Stock Due also to the shortage of rolling stock—practically all of which has been brought here from the S.M.R. from*Dairen—very little export produce is coming into Tsingtao. And other reason for this is that farmers n the interior are afraid to accept the new Federal currency in payment for their produce, as guerillas, led in some cases b? students, preach and threaten dire results for those assisting the Japanese by ac: eptance of these notes which are being more or less forcefully put into circulation in this province. The Peiping authorities intend to circulate 300,000,000 dollars worth these notes in Shantung.
Tobacco which forms a big item of export from Tsingtao, is now being purchased locally and due to the approach of the wet season, formers are bringing in their produce by every available means, railway conveyance being unobtainable. Formerly, buyers used to. send men to Ershilipu and Fang where the tobacco is grown, to make purchases.
Japanese buyers, who two months ago, purchased about 2,000,000 Ib. in ihe interior, are fin it very difficult to bring it to Tsingtao. Four of their buyers a short while back were killed at Fangtsze and it is not safe for them where their own military, protection is not available. Oid currency is being paid by buyers
Text read from the printed page and cleaned; old type leaves the occasional error.