§ Lord Killearnasked Her Majesty's Government:
Whether the Foreign Compensation (People's Republic of China) Order 1987 (1987/2201) made under the Foreign Compensation Act 1950 was an affirmative or a negative instrument; and when it (a) was made, (b) was laid before Parliament, and (c) came into force.
§ Lord Brabazon of TaraThe, Foreign Compensation Order 1987 (1987/2201) was laid before Parliament subject to negative procedure. It was made on 18th December 1987, laid before Parliament on 8th January 1988 and came into force on 1st March 1988.
§ Lord Killearnasked Her Majesty's Government:
What steps they took to inform the public of the contents of the Foreign Compensation (People's Republic of China) Order 1987 prior to the publication of the Foreign Compensation Commission's Annual Accounts (Cmnd. 761) on 25th July 1989; and what steps were taken to trace the owners of unredeemed Chinese sterling bonds including bearer bonds.
§ Lord Brabazon of TaraAn advertisement was placed in all national daily newspapers and 29 regional newspapers covering England, Wales, Scotland, Northern Ireland, the Channel Islands and the Isle of Man on Saturday 27th February and Monday 29th February 1988 and in all national Sunday newspapers on 28th February 1988.
This advertisment informed the public that the Foreign Compensation (People's Republic of China) Order 1987 would come into effect on 1st March 1988. It gave details of how prospective claimants should apply for explanatory leaflets and application forms. It also gave the closing dates by which claims had to be submitted. A copy of this advertisement was sent to governments of dependent territories and to all Her Majesty's missions overseas for display on consular noticeboards.
My honourable friend the then Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs held a press conference on 25th February 1988 at which he informed the press of the forthcoming advertisement. On the same day, in another place, he gave the date that the 1987 order was laid before Parliament as 8th January and the date it would enter into operation as 1st March. He also gave the dates that the advertisement would appear in the national press indicating how detailed information might be obtained by potential claimants under the order.
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§ Lord Killearnasked Her Majesty's Government:
What sum (in sterling) they received in 1987 from the People's Republic of China towards the redemption of China's outstanding sterling bonds and similar obligations; what balance of that sum remains after the payment of claims to date by the Foreign Compensation Commission; and what sum is still owed by China (a) in terms of the bonds' face value, (b) in real terms, (c) in real terms with accrued compound interest at 5 per cent. per annum since the bonds were issued in, for example, 1908 and 1913.
§ Lord Brabazon of TaraWe received the sum of £23,468,008 from the People's Republic of China and agreed to pay to the People's Republic of China the sum of US$3,800,000. Those sums were received and paid in two equal instalments on 5th August 1987 and 5th August 1988 respectively. At the end of September the amount held in the China Fund was £23,127,134.70. We have agreed to waive our own claims so that all the money in the China Fund will be available for distribution to private claimants.
The agreement between the United Kingdom and the People's Republic of China signed in Beijing on 5th June 1987 mutually settled all claims arising before 1st January 1980, including claims in respect of property as well as bonds. No sums are still owed to the United Kingdom by China in respect of claims arising before 1st January 1980.
§ Lord Killearnasked Her Majesty's Government:
What was the closing date imposed by the Foreign Compensation Commission for submitting claims in respect of such unredeemed Chinese sterling bonds, whether registered or not; how many claims have been settled (and for what total sum); how many claims are still outstanding (in respect of what total sum); and how many creditors have not yet been paid.
§ Lord Brabazon of TaraThe deadline for the submission of bond claims was 30th June 1988.
A total of 1941 ordinary bond claims were received by the Foreign Compensation Commission, with an estimated face value of £13 million. One thousand, seven hundred and seventeen of these claims have been determined, 127 rejected and 97 remain to be determined. An interim dividend of 5 per cent. of the value assigned by the commission to a bond was paid earlier this year to 1591 bond claimants. The amount paid was £425,723.99 on bonds with a face value of £8,514,480.
In addition to bond claims, 995 property claims were received by the Foreign Compensation Commission. It is anticipated that final payments will be made to all successful claimants in the autumn of next year.
§ Lord Killearnasked Her Majesty's Government:
On what basis the Foreign Compensation Commission is calculating the compensation 904WA payable in respect of claims against unredeemed Chinese sterling bonds; and what charges are deducted by HM Treasury and on what grounds.
§ Lord Brabazon of TaraThe Foreign Compensation Commission calculates the amount of a final payment when all claims including property claims against the China Compensation Fund have been determined. It is only then that the commission is able to make an assessment of the amount payable in relation to the amount of each claim and the funds available for distribution. The percentage payment in respect of sterling bonds is made on the sterling face value of the bonds.
The administrative expenses of the commission in determining claims against the fund are deducted from the fund. No charges are made by HM Treasury.