14. Mr. JOHN RUTHERFORD (for Mr. MOREING)
asked the Secretary of State for Foreign Affairs whether he is aware that during the last few months sums exceeding four million dollars have been abstracted by the Chinese Government from the receipts of the Peking-Mukden Railway, which would normally have been available for the service of the Fengching redemption and the Shanghai-Hangchow-Ningpo loans and other indebtedness: 10 and whether he will represent to the Government of China that the restoration of credit cannot be achieved if revenues, earmarked for the service of debt, are diverted for other purposes?
§ Sir J. SIMON
Yes, Sir, I am aware that these appropriations have taken place. The matter has already been the subject of strong representations to the Chinese Government in which objection was taken to such diversions so long as principal or interest on any of the loans secured on the railway funds remains unpaid. The effect of such diversions on the financial credit of China has also been pointed out.
Can the right hon. Gentleman say whether that part of the Peking-Mukden Railway which runs through Manchuria is paying its dues to the British bondholders?
§ Sir WILLIAM DAVISON
Can the right hon. Gentleman say what reply the Chinese Government have made to those representations?