HC Deb 06 July 1927 vol 208 cc1241-2
15. Mr. LOOKER

asked the Secretary of State for Foreign Affairs if he is aware that the payment of interest recently made in respect of the Hankow municipal debentures was made in depreciated currency; and what action he proposes to take in the matter?


asked the Secretary of State for Foreign Affairs if the new Mixed Council at Hankow has paid the interest, due on 30th June, on the municipal bonds issued by the Council of the former British Concession at Hankow?


The Acting British Consul-General at Hankow reports that the interest on the debentures is being paid in tael cheques drawn on the Central Bank, and that these cheques are cashed by the bank in its own notes at an arbitrary rate of 71 tael cents to the dollar. As the Central Bank's notes are at a discount of 40 to 50 per cent. vis-a-vis silver currency, debenture holders lose accordingly. The question as to what action should be taken is now under consideration.


May we have an assurance that the Government will take any steps that are necessary to ensure that the proper obligations with regard to this interest are fulfilled?


I am not prepared to go further than I have said. The matter is under consideration.