HC Deb 24 July 1933 vol 280 cc2211-2

asked the Secretary of State for Foreign Affairs, with reference to the heavy arrears outstanding on Chinese railway loans, whether he will cause representations to be made to the Government of China that they should without delay summon a financial conference of representatives of the various groups of bondholders to discuss and decide on a scheme to secure the liquidation of the debt in regular instalments?


No, Sir. My right hon. Friend does not consider that it would be useful at the present moment to press for the adoption of the procedure in question. The suggestion will, however, be borne in mind should it appear opportune to do so in the future. Meanwhile, the opportunity has been taken of the presence of the Chinese Minister of Finance in this country to impress upon him the seriousness of the situation.


asked the Secretory of State for Foreign Affairs whether he has been able to obtain from the Government of China an assurance that the railway revenues allocated for the service of railway loans shall not in future be diverted to other purposes?


As regards the Peking Mukden Railway, the Chinese Government have given an assurance that there will be no future repetition of the allotment of funds of the railway to supplement military requirements. In the case of other railways no specific instances of diversion of funds have been brought to the notice of my right hon. Friend. His Majesty's Minister has, however, made continual representations to the Chinese Government from time to time as defaults occurred, and will lose no suitable opportunity of impressing on the Chinese Government the importance of maintaining their obligations to their creditors.

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