HC Deb 10 March 1926 vol 192 cc2325-7W

asked the Secretary of State for Foreign Affairs whether the interest and principal of the Chinese railway loans, German issue, British


The following staffs in the Departments mentioned are engaged wholly or mainly on duties of inspection:

owned, is paid by the Chinese Government at present; whether the Chinese Government has honoured those German-issued Chinese railway bonds which have been duly examined and specially sanctioned by the Chinese Government and validated as non-enemy owners, particularly British holders; whether there is any differentiation in the payment of interest and principal of the German-issued Chinese railway bonds, and, if so, on which loan and why; and whether the British Minister is making any representations in the interests of British bondholders against such differentiation?


Notwithstanding their public announcement of 4th July, 1924, of their intention to resume payment and to meet all arrears of principal and interest of the German issues of the Tientsin-Pukow Railway Loans of 1908 and 1910, and of the Hukuang Railways Loan of 1911, the Chinese Government have, with trifling exceptions, failed to do so, and have also, since that date, suspended the service even of the validated bonds. Representations have been made on behalf of British holders of these German issues by His Majesty's Minister at Peking, but without result, and the Chinese Government have given no satisfactory reason for differentiating between the British and German issues. In the meantime, the situation has been changed by the recent default on two of the British issues themselves, and His Majesty's Minister is pressing the Chinese Government to make good their default on the loans in question.