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China will not pay old debt

NZPA-Reuter Peking China has reiterated that it has no obligation to repay debts incurred by previous governments, in a move that appears to be bad news for foreign holders of pre-1949 Chinese bonds.

The New China News Agency has published a Foreign Ministry Note to United States Secretary- of State. Mr George Shultz.’who visited Peking recently, saying that Peking recognises no external debts incurred by "past reactionary governments."

. The Note, described as an aide memoire. rejected a United States District Court ruling that China must repay SUS4I.3 million to holders of a 1911 imperial bond issue.

It indirectly threatened that Sino-United States relations and trade might be affected if the United States Government did not resolve the case, which arose from a lawsuit brought by nine Americans in Alabama.

They had demanded that China' repay the principal and interest on Huguang Railways bearer bonds issued by the imperial Manchu government shortly before it was overthrown by the Nationalist republic of Dr Sun Yat-Sen.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19830217.2.60

Bibliographic details

Press, 17 February 1983, Page 10

Word Count
169

China will not pay old debt Press, 17 February 1983, Page 10

China will not pay old debt Press, 17 February 1983, Page 10