§ 15. Mr. MOREINGasked the Secretary of State for Foreign Affairs whether his attention has been drawn to the continuing default in the payment of arrears of interest and amortisation on the Tient. sin-Pukow railway loans; whether he has received any report from His Majesty's representatives in China of the earnings of the railway during the past 12 months; and what reply he has received from the Chinese Government to his representations in the matter?
§ Sir J. SIMONYes, Sir, I am aware of the continuing default on the Tient-sin-Pukow railway loans, but I have received no information regarding the earnings of the railway during the past 12 months. As regards the last part of the question, the Chinese Minister for Foreign Affairs, in reply to representations on the subject from His Majesty's Minister, quoted, without comment, in notes dated the 10th June and 13th July respectively, answers received from the Ministry of Railways and Ministry of Finance. He further dealt with the same subject in a note received on the 13th September last. None of these communications, I regret to say, appears to hold out any prospect of an immediate satisfaction of the bondholders' claims, though the Ministry of Railways stated that instructions had been issued for means to be devised for a resumption of payments into the special reserve account intended to serve for the eventual liquidation of the loans. One or two payments appear to have been made since then. They are not sufficient to 11 make the position in any way satisfactory, and His Majesty's Minister, on my instructions, is renewing his representations.