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REDEMPTION OF BONDS
BY JAPANESE GOVERNMENT.
China Association to Financial Commissioner for Japan.
China Association,
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SIB,
159, Cannon Street, E.C.,
2nd April, 1914.
Through its affiliated branch, the British Association of Japan, in Kobe, this Association has received certain correspondence, a copy of which is enclosed, between Sir Conyngham Greene, British Ambassador, and H. E. Baron Takabashi relative to the redemption of Bonds by the Japanese Government.
It will be seen that some uneasiness has been created amongst bondholders by the methods adopted in dealing with Bonds drawn for redemption. It would seem, in some instances, that the coupons have been cashed irrespective of whether the Bond had been drawn for payment or not; that when it was ascertained the Bond had been so drawn and interest paid, instead of redeeming it upon presentation at full value the Bank first deducted the total of interest paid.
My Committee hesitate to enter into discussion upon this point, not being versed in Japanese law, but if the procedure be correct-as no doubt it is-it does not seem to them quite fair to the Bondholders.
It would seem, however, that the difficulty arises through failure to notify a coupon- holder when his Bond has been drawn. Baron Takahashi's reply is that the numbers of Bonds drawn are fully advertised in the Government Gazette. My Committee would point out that the great percentage of foreigners are unable to read Japanese; and to the retort that it is a simple matter to place the Bonds in the bands of a Bank, it may be aaid that such a course is not always convenient or desirable. The obvious remedy, and
AC
433
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