CHINESE FINANCE

Poverty Bay Herald, Volume LIV, Issue 16806, 20 November 1928, Page 7

CHINESE FINANCE

FOREIGN LOAN SECURITY

PROTEST TO GOVERNMENT (British Official Wireless) Rec. noon. RUGBY, Nov. 19. The Foreign Office has issued the following statement, which also has been given to the press in China: "Tho Chinese, French and British Ministers, and the Japanese Charge d'Affaires, have taken note of the. statement of November 10 issued by tho Minister of Finance of tho National Government of China, dealing with the question of service loans secured on the salt revenue. From this statement it appears that the Minister of Finance has made a fundamental alteration in the functions of the chief inspectors of the salt gabelle, as laid down in the reorganisation loan agreement of 1923, and the French and British" Ministers, and the Japanese Charge d'Affaires are instructed by their Governments to make it clear that it must not be implied that those Governments accept- the Minister of Finance's scheme as a satisfactory alternative to the arrangement prescribed in the loan agreement. "If the Notional Government of China varies by unilateral action tho terms of the international agreement the responsibility for any consequences which may follow from such action must rest on its shoulders, andf, in particular, it must take full responsibility for tho liquidation of all loans secured thereunder, whether the scheme which they thus propose to bring into use provos successful in producing the requisite amount of revenue or not.