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has also arisen about the date of the termin¬tion
of the former Council's liabilities to its cmployces,
the Chinese Commissioners insisting on the 8th
December, 1941 (the date of the outbreak of the
Pacific War) and the foreign advisers the 30th
September 1945 (the date on which the Chinese took
administration of the settlement.
over the do facto
These questions are now under discussion in Nanking
between the Chinese Government and the foreign
diplomatic missions concerned. H.M. Government aro
particularly concerned, as a large number of ex-employees
are British subjects. The latter are bringing constant
pressure to bear, in Parliament and elsewhere for carly
payment of the amounts due to them.
5. The payment of Shanghai Municipal Council
debentures has not yet boon discussed by the
Commission. It is hoped that the Chinese Commissioners
nay be persuaded to agree to recommend the application
of a multiplying factor to this liability of the
former Council, to offset the depreciation of the
Chinese currency; this would be in accordance with
Chinese Court decisions on sinilar issues. The British
adviser is trying to secure early consideration by the
Commission of the Hongkong and Shanghai Banking
Corporation's sterling loan to, the former Council.
More than £500,000, secured by a lien on all the
Council's assets, is involved. So far it has not
been possible to reach a decision on these or any other
matters relating to Shanghai owing to the procrastination
of the Chinese Commissioners.
6./