144,750,000 FrFcs), US dollars (total value 28,699,696 dollars), Belgian francs (total value 137,743,000 B.Fcs), Dutch florins
(total value 30,750,000 F1) and yen (total value 9,340,000 yen) British nationals may have. The bonds are bearer certificates and non-Chinese currency bonds were not registered by the FCC in 1980/81. The only bond claims registered by the FCC in 1980/81 were Chinese currency bonds and of these there were approximately 21.6 million mostly bonds issued by the Shanghai Municipal Council.
It is felt that it would be invidious to restrict the distribution merely to holders of sterling bonds. We registered Chinese currency bonds in 1980 and they were part of our claim submitted to the Chinese. British holders of
non-sterling/non-Chinese currency bonds are unlikely to be allowed to claim in compensation distributions organised by other governments if the latter conclude bilateral agreements with the Chinese. This will be their only opportunity of obtaining compensation.
Furthermore, our Claims Agreement with the Chinese covered all bonds held by British nationals, irrespective of the currency of denomination.
The Council of Foreign Bondholders are likely to criticise the lack of compensation for guaranteed interest as they did in the case of the Russian Order. But as it is the outcome that I think they will expect, the criticism is likely to be pro-forma. Moreover it can be defended on the grounds that as in the case of the Russian Order interest is being denied also on other claims.
I should be grateful for confirmation that the Minister is content that in these respects we proceed as under the Russian Order.
d) Bona Vacantia
As in the case of the Russian Order, the draft Order includes a "bona vacantia exclusion" clauses in draft Articles 7 and 12. These exclude the Treasury Solicitor putting in claims effectively as successor to companies liquidated over 20 years ago and which cannot therefore be restored to the Companies Register for the purpose of making a claim. Bona vacantia windfalls belong to the Crown, but it has been customary for the Crown to distribute any monies it receives to any creditors and shareholders of the former company that can be traced.
The reasons for including identical provisions in the case of the second Russian Order were as follows:
i) the need to set definite limits to the classes of admitted claimants: in past distributions of foreign compensation shareholders were not entitled to claim directly against the
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