Teingtao, Apr. 21.
'Tuingtao, during the past three woaks and within the next few, wil have witnessed a naval pageant such og has not been the privilege. of Its didest real dent to be able to relate as having' occurred here, "First, ofall LIMMS. Polksione arrived towards the end of March and remained for about w week, then while she was anchored In the Outer Harbour, the apanese. Grand Combined Fleet con-isting of about 63 units of the First and Second Pleets—from submarines {o capital ships and the latest alr-into the bay on the morning of March 50 and remained. until April 2 the more important vessels of this armada" were the battleships Mutso (Flagship), Nacato, Kirlshima, Hhuga Haruty and the aireraftearriers Kaya, Hosho and Rivjo. This Jo agglomeration of naval. might was under the command of Admiral Nagano, Chief Delegate of the Japanese Naval" Mission. to the London aval Conference in 1096 and latterly Naval Minister in Ube Hirotw Cabinet.
Royalty on Board very distinguished personage on 'Admiral' Negano's.staft" was HR, Prince: Kuninomiya, elder brother of ELB, the Japanese Empress. Among the other notable ofoers in this eet was Baron" Samejima, commanding the battleship Nagato and who com manded the Japanese Landing Party the. 1082 Imbrogllo, "in. Shanghai, The Nagato was recently remodelled ud' brought up to date.
"The line of ships was strung out for several miles from. the inner harbour, where the smaller. ships Jay, Might out to Ttis Huk where the Ingest units anchored and presented a most Imposing spectacle, The local 'Sapanese' community was of course an" toto. and™ courtesy' calls "were made and returned by the Mayor tid other local Chinese officials, while Gen, Sung Cheb-yuan sent. up 2 special delegation of Chinese milltary officers in response to the invitation of the Japanese officials in Tientsin to visit their fleet here, The behaviour of the complement of these verselsnumbering over 40,000 men "while on shore leave was beyond Abia Osumi, tate atinister, of Navy, was also an Important visitor On "the 10,000-ton cruiser, Miyako, shortly after the Grand Fleet lett, and came here as Special Inspector' to. inspect, other units tioned here. He stayed for one day and left for Shanghai, French Fleet Arrives competition in the shape of the Chi-Rose Government buying and shipping to Germany despite the fact that the European. market was as much as £2 per ton below local prices. The Government has been purchasing through the medium. of the Yee Lee Oil Mill and their willingness to pay practically any gute asked, caused local prices 10 skyrocket.
Legitimate business this season has been negligible as a result and even the East Asiatfe Company who usvalare in a position to ship while other exporters are idle—due to their being also shipowners and operating their own all mills abroad—have done relly anything. Yee Lee Oil Mills have 30 far shipped about 15,000 tons of Kernels and about 4000' tons all to Germany, ostensibly as barter Hor military supplies for the Chinese Government and still have on hand about 20,000 tons of kernels and four to five thousand tons of all.
Whether this will eventually be exported remains to be seen. but meantime they have stopped buying and local prices have as a conse [quence receded. It is rumoured that due to strong Japanese representations to the Reich Government, the tarter arrangement has had to be suspended, as Japan has no. wish to see her new ally helping China with armaments in exchange for peanuts and peanut oil.
Legitimate traders and exporters Jare very perturbed, as should. this Government competition "continue, they will be foreed out of the market fand this would be disastrous for all connected with the local Dusiness, How the present undesirable state of things will right themselves, would be Interesting' 10 know.
Text read from the printed page and cleaned; old type leaves the occasional error.