The American, British, and French Representatives in China to the Chinese Minister for Foreign Affairs (C. T. Wang)20

With reference to the Joint Note of the 24th of June last,21 on the subject of the Hukuang Railways 5 per cent Gold Loan of 1911, the Undersigned Representatives of France, the United States of America and Great Britain have the honour to invite the attention of His Excellency the Minister for Foreign Affairs to the default that has again occurred in the service of this loan, no provision having been made for the interest and amortisation, amounting in all to £195,629.7.1. due for payment on December 3rd last. The addition of this sum to the arrears previously outstanding brings the total accumulation of arrears to a sum of £1,488,967.2.5. not including the interest due on drawn but unredeemed bonds.

The interested Representatives must once again draw His Excellency’s most serious attention to the fact that still no means have been devised to meet this ever increasing accumulation of arrears and must urge that the necessary instructions be issued by the National Government to the departments concerned to look into the matter and to take steps to provide the necessary funds in the manner clearly set forth in the terms of the Loan Agreement.

It has been noted that, in a letter from the Ministry of Railways to the interested Banks under date of December 3rd, a letter from the Ministry of Finance is quoted stating that “as the likin taxes in Hunan and Hupeh Provinces have not been actually abolished, the necessity for consideration of an equivalent amount from the increased Customs revenues does not arise”. This statement would seem to imply that revenue is still being derived from the likin taxes of Hunan and Hupeh, and if that is the case, the interested Representatives would suggest that such revenue, as and when it is received by the National Government, should properly be applied to the service of the loan in accordance with the terms of the Loan Agreement of 1911.

  • D. de Martel
  • Nelson Trusler Johnson
  • E. M. B. Ingram

(Counsellor of Legation for His Majesty’s Minister)
  1. Copy transmitted to the Department by the Minister in China in his despatch No. 35, February 19, 1930; received March 28.
  2. Not printed.