HC Deb 26 January 1931 vol 247 cc593-4
23. Mr. A. M. SAMUEL

asked the secretary of state for Foreign Affairs whether he is now in a position to make a statement about the default of the Chinese Government in its obligations to British holders of Chinese railway bonds, including those of the Hu-kuang, the Tientsin Pukow, the Lung-tsing-u-hai, and the Canton Kowloon railways?

Mr. DALTON

Proposals having for their general object the liquidation of outstanding debts were submitted by the Chinese Government at the conference hell at Nanking with the British and other diplomatic representatives in China in November last. These proposals are now being considered, and Sir Miles Lampson has circularised all British creditors with a view to obtaining a full list of their claims against the Chinese Government.

Mr. SAMUEL

Will the hon. Gentleman, before the Chinese indemnity Bill becomes law, warn the Chinese Government that it will be very difficult for them to raise money here again by loan or borrowing for railway equipment unless and until they fulfil their earlier obligations to British holders of Chinese bonds issued in the past?

Mr. DALTON

We will bear that suggestion in mind.

Sir W. DAVISON

Will the Foreign Office see that the £3,000,000 under the Boxer Indemnity is not parted with by us until such time as the Chinese Government have fulfilled their obligation to British bondholders?

Mr. DALTON

We had a debate on the China Indemnity Bill the other day, and I do not remember that point being put officially on behalf of the party opposite.

Mr. SAMUEL

Does not the hon. Gentleman remember that during the debate on the Bill when the President of the Board of Trade read a letter to the House I specifically put that point to the President of the Board of Trade, and that he asked me to put down a question about it? That is the reason for this question.

Sir W. DAVISON

Surely, if the point is a good point, whether it is put officially or not, it ought to be attended to, as the Foreign Office represent the country as a whole, and especially British bondholders.