HC Deb 02 May 1927 vol 205 cc1265-6
41. Sir CLEMENT KINLOCH-COOKE

asked the Secretary of State for Foreign Affairs what steps were taken when the Hankow agreement was made to safeguard the security of the municipal debentures issued by the late British municipality?

Sir A. CHAMBERLAIN

Article 16 of the Regulations of the Municipal Bureau contains a provision that "the Bureau shall take over the financial obligations of the British municipality duly contracted under the ratepayers' authority." Mr. O'Malley insisted on the insertion of this Clause with the object of securing the debentures.

The following arrangements were made with a view to affording collateral security:

  1. (a) Registration of the debentures in the British Consulate-General as specific charges against municipal properties;
  2. (b) Transfer of these properties by deed to tile new administration subject to these charges;
  3. (c) Execution by the new administration, on the transfer to them of the assets of the British Municipal Council, of a bond undertaking to meet debenture payments to protect debenture charges on properties, and to notify debenture holders of their assumption of liabilities.

Sir C. KINLOCH-COOKE

Is my right hon. Friend satisfied that these properties are safeguarded?

Sir A. CHAMBERLAIN

There is not a great deal about which I can declare myself entirely satisfied in the Chinese situation at the present time.

Mr. LOOKER

Have any payments of interest fallen due since the arrangement was made, and has the interest been paid or not?

Sir A. CHAMBERLAIN

I could not answer my hon. Friend's question without notice.

Mr. WARDLAW-MILNE

Has my right hon. Friend any evidence which shows that these securities still exist at all—the properties on which the debentures are secured?

Sir A. CHAMBERLAIN

I do not think the property on which the debentures are secured has been destroyed.