In November 1897, two German missionaries were murdered by a mob in Shantung Province, China.  In response, German naval forces occupied the port city of Tsingtau, and the German government used the occupation to press the Chinese government for a long-term lease of the port and the surrounding area. In March 1898, Germany and China entered into a 99-year lease under which Germany would control both sides of the entrance to Kiautschou Bay, as well as the islands within. Around this leased territory would be a small neutral zone which would, in effect, also be under German control.

During the German colonial period, Germany operated a convalescent home (Genesungsheim) and recreation area for military personnel at Mecklenburghaus in the Lauschan Mountains of northeastern Kiautschou.  The area’s postal needs were initially serviced by a postal unit without a canceller, with items being marked with a circular private canceller before being sent to neaby Litsun, where the postage was cancelled with the Litsun canceller.

A postal agency was opened at Mecklenburghaus on 23 July 1909, and it remained open until the early days of World War I, closing on 18 September 1914.  After the opening of the Mecklenburghaus post office, mail from the Genesungsheim was frequently still marked with a single-line private marking noting its origin, or, on rare occasion, a two-line private marking.