§ 13. Sir J. WARDLAW-MILNEasked the Secretary of State for Foreign Affairs whether he will inquire of the Chinese Government whether any of the proceeds of the British share of the Boxer Indemnity have yet been devoted to educational endowments in China, and, in particular, whether the interest on unexpended capital sums in the hands of the London Purchasing Commission is credited to the Board of Trustees for educational purposes?
§ Sir J. SIMONAccording to the latest report issued by the Board of Trustees, covering the period January-June, 1932, copies of which have been placed in the Library of this House, the proceeds of the loans made by the board to productive enterprises have not yet amounted to a sum sufficient to enable grants to be made to the educational and other institutions which have made application for funds. I am having inquiries made in respect of the period subsequent to that covered by the above report. The answer to the second part of the question is in the negative. The interest, however, together with the capital, is available for the purchase of material in the United Kingdom, and, in accordance with the Indemnity Agreement of 1930, money so expended is to be treated as a loan from the Board of Trustees to the enterprise which benefits from it, and will eventually be applied to educational purposes.
§ Sir J. WARDLAW-MILNEIs it not the case that the United States have given up about a fifth of the sum which the British taxpayer has given up, and have already secured a lasting memorial of their good will and sacrifice in the shape of a Peking University? Cannot the Government secure some similar monument to mark the generosity of the British taxpayer?
§ Sir J. SIMONI am obliged to my hon. Friend for mentioning the matter, and I will look into it.
§ 16. Sir J. WARDLAW-MILNEasked the Secretary of State for Foreign Affairs whether he will make representations to the Chinese Government in favour of restricting advances to Chinese railways out of the British share of the Boxer 2162 Indemnity to such railways as have made definite arrangements for the liquidation of past loans?
§ Sir J. SIMONThe question of advances to Chinese railways is one for the discretion of the Board of Trustees. In the agreement of September, 1930, printed in Command Paper 3715, the Chinese Government stated their intention so far as rehabilitation of existing lines was concerned, of giving prior attention to those lines in which British financial interest has been particularly concerned. My hon. Friend will realise that the rehabilitation and completion of existing railways will tend to increase the revenues from the railways in question, and so improve the position of the bondholders of loans already secured on them. The policy which he suggests might, I think, have the contrary effect.
§ Sir J. WARDLAW-MILNEIs it not the case that some of these grants are being given to railway concerns which are making no effort to pay off past loans?
§ Sir J. SIMONThat is not my information. The hon. Gentleman's suggestion might make it impossible for a particular railway to receive an advance for revenue-producing expenditure without which the revenues might well continue to remain insufficient to meet normal expenditure.
§ 21. Mr. MOREINGasked the, Secretary of State for Foreign Affairs whether he has received any information as to the proposed loan of £4,000,000 to the Chinese Ministry of Railways by the board of trustees of the British Boxer Indemnity Funds, for the completion of the Hankow-Canton Railway; what security is offered for the repayment of interest and amortisation on the loan; and whether such security includes revenues which would otherwise be available for the payment of arrears on loans to Chinese railways?
§ Sir J. SIMONI have received no official information, but my attention has been drawn to Chinese Press reports of the loan referred to, according to which the security approved by the board of trustees consists of the following: the net profit on one section and the gross profit of the other section of the Kwangtung portion of the Canton-Hankow Railway, together with the entire revenue of the 2163 surcharge on the passenger and freight transportation of the various Chinese Government railways.