§ 8. Sir WALTER de FRECE
asked the Under-Secretary of State for Foreign Affairs if he can state, for the benefit of the British investor, the exact position in 1180 respect of recognition of Chinese Government bonds issued in Germany and Austria?
The Chinese Government have undertaken to recognise all Chinese Government bonds of ex-enemy issue which were held by British subjects prior to the declaration of war between China and the countries concerned. In the case of the secured ex-enemy loans. payments have been duly made. In the case of certain ex-enemy loans which were issued without adequate security, no payments have been forthcoming since the War; repeated representations have been made on behalf of British holders of these bonds to the Chinese Government, who recognise the obligation but have hitherto failed to provide the necessary funds to meet it. According to the information in my possession, the Chinese Government are refusing to pay bonds of ex-enemy issues held by ex-enemy nationals at the time of China's declaration of war irrespective of the present ownership of such bonds.