FO371-24687 — Page 141

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No. 708 E (2/89AN/1940)

(and three copies)

Copy sent to:-

Department of Overseas Trade No. 49

BRITISH EMBASSY,

SHANGHAI,

11th September 1940.

My Lord,

List of Loans

Copy of Regula-

lons

Copy of Regula- tions

CHINESE GOVERNMENT LOANS

I have the honour to transmit herewith a list of Chinese Government Loans issued from the time the Sino-Japanese hostilities started in August 1957, up to October, 1939.

2.

There have recently been published "Regulations of the 1940 Reconstruction Gold Loan", which appear to have been promulgated in Chungking on March 1st last. A copy, in translation, of these Regulations as published in "Finance and Commerce" is enclosed herein. This loan is for ten million pounds, and United States dollars fifty million, half to be issued on May las and half on November 1st 1940; subscribers may pay in sterling, United States dollars, or Chinese national currency at the Government's merchant rate which appears to mean the rate used for export purposes, i.e. 7d. or 13 3/8 for United States dollar. Interest is 5 per cent. Repayments will begin after two years and the loan is to be paid off in twenty-five years from then. No special security is mentioned. It has been rumoured that this loan is a means of persuading overseas Chinese to invest their foreign currency holdings and that considerable pressure is being brought to bear by the Kuomintang organisations abroad.

3.

The Regulations of a "Military Supplies Loan" of $1,200 millions have also just been published. This loan was to be issued in two instalments, on March lat and September lat of this year at 6 per cent and 94. No special security is mentioned. A translation of the se Regulations as published in "Finance and Commerce" is enclosed herein.

The Right Honourable

I have the honour to be,

With the highest respect,

My Lord,

Your Lordship's most obedient,

humble Servant,

(in the absence of H.M. Ambassador)

(signed) P.M. BROADMEAD.

Viscount Halifax, K.G., G.C.5.I.,

etc., etc., etc.,

FORZION OFFICE.

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