CO129-619-1 Parliamentary delegation to China 1-9-1947 - 23-12-1947 — Page 144

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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./