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Many of the British firms to whom these large
debts are owing are having to pay heavy interest charges
to their bankers who financed the debts, and this burden,
coupled with the crippling effect of the state of civil
war, threatens to submerge some of them altogether.
As I had the honour to mention in my telegram No.53 of
January 20th, I recently received a deputation of rep-
resentatives of Tientsin British firms, which are the
largest creditors of the Chinese Government departmenta
and railways for materials supplied years ago and still
unpaid for. It was pointed out to me on that occasion
that, if certain of these firms cannot in the near
future obtain some relief in regard to these debts,
amounting in individual instances to millions of dollars,
they will very shortly be compelled to close their doors,
and it was urged that the Boxer Indemnity funds should be
used to sove the situation.
7.
It has been pointed out to me that it might be
possible without interfering - in principle at any rate -
with the recommendations of the Willingdon Commission,
to use a part of the British Indemnity funds, by arrange
... ment