In 1897 Germany occupied the port of Kiautschou and areas around the port. Officially the port was still part of China but Germany was given the mining and railroad rights. At the beginning of World War I, China cancelled the lease with Germany for this region, however Germany refused to do so. In August 1914, Japan declared war on Germany and Japan took over control of this region. After the 1st World War, the Treaty of Versailles assigned all German territories in the Pacific region north of the Equator, to Japan. China refused to accept this and eventually the region was returned to China in 1922.
It is said that there are many forgeries of the stamps that were only issued from 1901 until 1905 but the used copies of these stamps seem to be sought after.
Yacht Series (Inscribed Kiautschou)