CONFIDENTIAL
Claims
4.
Lord Carrington said another, and longstanding, bilateral
problem was claims. An outline list had been presented to the Chinese Government in April. This was not just a Governmental matter but also affected a large number of private individuals. He would be grateful for an indication of the Chinese Government's readiness to negotiate.
5. Huang Hua said that private claims had a long history. Great changes had taken place in the meantime. The Chinese side
wanted to investigate the problem. Other countries had
raised similar claims.
6.
As a general principle, the Chinese Government did not undertake to pay up on claims for securities issued by the Northern Warlord Government, or on Chiang Kai Shek's debts. Vice President Mondale had been told this during his recent visit to China, when he had raised the question of American Loans
to previous Chinese Governments. It would be pointless for the
-
United States to make payment on these a condition for new loans
to China. However, the Chinese Government would investigate, and intended to settle, some private British claims for assets such as real estate or personal effects. Vice Minister Zhang Wenjin noted that these claims represented assets unconnected with previous Chinese Governments. Another factor was the confiscation of Chinese property in Hong Kong by the British
Government. after China's liberation. The Chinese Government
regarded this as a sanctions measure, and had requisitioned
properties in China in retaliation. The Chinese Government could
be expected to raise claims of their own. After Liberation, all land in China had been nationalised without compensation.
Any
7. Lord Carrington thanked Huang Hua for his response. Chinese claims would be taken into consideration. The British
Government would not repudiate excessive debts accumulated by
the previous administration-such action would be criticised
by Britain's friends and allies, and her creditors. He recognised that the situation in China was different, but hoped that the Chinese Government would look at the question.
CONFIDENTIAL
/Hong Kong