Appeal to Foreign Holders of Bonds for Patience Nanking, July 22.
China has the will and the eapacity to pay off her railway loans, declared Dr, Francis K, Pan, Chief Secretary of the Ministry of Railways, in a radio broadcast over the Central Boadeasting Station this evening. He said the Government was doing {ts utmost to consolidate lis credit. position.
"That the Government is sincere and fair-minded in its efforts to negotiate with creditors of the various nations can no longer be doubted," assorted "the speaker. "Sincerity, supported by real convietion, "fairness of mind, "and thorough understanding of the probe Jem in all its aspects, may well Fepresent the new attitude of the Ministry of Railways. Given a sut-Aciently-long period of peace within and non-interference from without, China's ability to pay will be assured, However, before she reaches the stage of ancial stability, the creditors should have patience and be willing to make certain reason able allowances, He appealed for the forbearance of railway creditors, which, in. his view, is necessary for" the' success of any Loan settlement, To date, Interest in "arrears and principal outstanding has reached the alarming total of over $1,000,- 000,000, said Dr. Pan, The progress made in regularizing railway loan services in the last seven months has been most gratifying, as was shown by the recent successful conclusion of the Tsinpu Railway and the Honan Railway loans and the issue of the the new Shanghai-Hangchow-Ningpo completion bonds, Touching on the readjustment of internal Toans, the speaker noted 'a new departure in financing. Inter~ national loans by the participation of Chinese capital in oilway loans, for instance, the 6 per cent, sterling Shanghai-Hangchow-Ningpo comple: tion loan was financed by the China Development Finance Corporation in conjunction with the British Chinese Corporation. "Dhis tendency Chinese capital partaking in the development of its own enterprises to be fostered' to the fullest extent" he said, "for, if carried out consistently, it means the strengthen ing of the' whole economic. and Anonelal structure of China. 'There abundant capital in China for railway Investment, but it is not quite ready as yet' to flow into the required ehannels."—Central News,
Text read from the printed page and cleaned; old type leaves the occasional error.