38. Lieut.-Colonel Sir FREDERICK HALL
asked the Secretary of State for Foreign Affairs whether the arrangements recently made with the Nanking 620 Government for the restoration of the salt administration in the territory controlled by that Government are operating satisfactorily; and whether the Nanking authorities have fulfilled their undertakings with regard to payments in respect of the foreign loan service?
In accordance with an arrangement negotiated between the Associate Chief Inspector of the Salt Administration and the Nanking authorities, the latter ordered the reopening, as from the 1st February, of the four District Inspectorates in the area actually under their control. Difficulties have arisen in the carrying out of this arrangement, and discussions are in progress with a view to meeting them. I have no information as to what, if any, payments on account of loan services have been made during the few weeks since this arrangement was inaugurated.