§ 34. Mr. Moreingasked the Secretary of State for Foreign Affairs whether he proposes to make any representations with regard to the injustice suffered by a British subject in Shanghai who, on applying to the Chinese courts for judgment against a defaulting mortgagor, after allowing for the cost of successive appeals by the defence and other litigation, was last year obliged to accept a settlement involving a loss of, approximately, 30,000 dollars on his original loan of 75,000 dollars?
§ Viscount CranborneI am expecting a report from His Majesty's Ambassador.
§ 35. Mr. Moreingasked the Secretary of State for Foreign Affairs whether he will ask His Majesty's Ambassador in China for a report giving the precise state of the Chinese law with regard to powers of sale and foreclosure against a defaulting Chinese mortgagee, stating, in particular, what rights of appeal have been granted to the defendants in recent cases; and whether security for costs has to be provided by either the plaintiff or defendant before an appeal is allowed?
§ Viscount CranborneChinese legal procedure regarding mortgaged property is governed by the relevant Articles of the Code of Civil Procedure, supplemented by various rulings given by the Judicial Yuan. His Majesty's Ambassador has already furnished me with reports dealing with developments in the position, and will no doubt continue to do so without further instructions. The Civil Code provides for three stages of appeal until the case finally comes before the Supreme Court, but in this connexion I would refer my hon. Friend to the reply which I gave to my hon. Friend the Member for North Dorset (Sir C. Hanbury) on 8th March. As regards security for costs, I am informed that no such security is required before an appeal is allowed.