§ Sir C. Hanburyasked the Secretary of State for Foreign Affairs (1) whether his attention has been called to the serious damage to British commercial interests in Shanghai due to the impossibility of obtaining prompt redress from the Chinese courts in the case of default 807W in repayment of sums advanced on mortgage to Chinese subjects; and will he make representations on the subject;
(2) whether he will represent to the Chinese Government that the ability of Chinese merchants to secure loans promptly from British and other sources by the mortgage of title deeds has hitherto been one of the foundations of commercial credit in Shanghai, and that the system has been undermined by the policy adopted by the Chinese courts in recent years of allowing successive appeals without any security for costs and outstanding interest, and the accumulation of law costs in cases where there is no substantial defence?
§ Viscount CranborneI am informed that this matter has been the subject of correspondence between the Consular Body at Shanghai and the Chinese Mayor, who has stated that in ordinary cases of foreclosure the law provides for disallowance of appeals designed to prolong litigation. My right hon. Friend's last information was that the foreign Chambers of Commerce at Shanghai have the Mayor's statement under consideration, and it does not appear that representations by His Majesty's Ambassador to the Chinese Government are at present called for.