London Committee Accepts Due: Coincident with Discussion in Commons Nanking, Feb. 25.
The Ministers of Finance and Railways to-day announced the following offer concerning the resumption of service of bonds of the Tien-{sin-Pukow Railway Loans of 1908-
L—Interest to be pald at the rate of 2% per cent. per annum in 1990- 38 inclusive, and 8 per cent. thereafter.
2—Principal repayment to begin 1940, the amount of annual instalments to be dependent upon gross cash earnings, 30 that the loan would be liquidated within about 40 years from 1886. The Government, however, Is to be entitled, upon Feasonable notice and without pre mium, to increase the amount. of principal retired on any. payment date. The scheme of amortization provides for applying 1 per cent. of gross cash earnings "for the years 1940-42 "inclusive; 1% per cent, 1043; 2 per cent. in 1044, cle, creasing by % per cent. each" year until the percentage reaches 10. per cent. in 1960; and 12% per cent. thereafter until the loan is completely retired. Bonds drawn but not yet retired would be paid according to the order of drawings, £3,150,000, Redemption by annual drawings commenced in 1918 and to terminate in 1938, Secured by the revenues of the railway. Besides fir jchorge on certain likin and Internal revenues of the provinces of Chinlt, Shantung and Klongsu, The balance outstanding on Decombor 21, 1985, was:—British £1,150,250 and German £2,206,000. The principal ff this loan has been in default since April, 1925, and the Interest. since October, 1925, 'Tientsin-Pukow Supplementary Loan 1910, £3,000,000 total,. British por-ion £1,110,000, German £1,800,000, Redemption by' annual drawings of £150,000, commenced in 1921 and end. ing. in 1040; secured on revenues of the railway, Besides first charge upon certain provincial revenues to the aggregate amount of IFewan Tls. 3,500,000. Second charge on other provinces. revenues to the aggregate naunt of TPkwan Ts, 3,800,000.
On December 31, 1935, the balance outstanding was:—-British £80,000, fand German £1,000,500, The pri pat of Uhig Joan has been outstonding. since November, 1924, and the Interest since May, 1025, 3—Cancellation of four-fifths of interest in arrears and also four Afths of the amount of Interest due but not to be paid during 1990-38 (ey half the" schedule interest). Non-interest-bearing scrip to be issued for the balance and to be pald beginning 1041, over approx!- mately 20 years. The yearly instalments would be substantially equal, except that the Government would the right of transferring to of the aforementioned 0 proximately 20 years not over 60 per cent. of payments during the first three years.
"4—Payments to be made out of railway revenue, but, in pursuance of Arlicle 9 of the original ogreements, the Inspector-General of Customs will be instructed to make up any deflelencles in the sums required for interest as stated above, The above offer, which Is the outcome of consideration of the subject over the last two years and discus cussions between the Chinese Government and representatives of holders of the British and German issues of the Tientsin-Pukow Loans of 1000- 10, applies to outstanding amount of about £6,180,000.
'Mr. Chang Kia-ngan, Minister of Railways, also announced that' the oilway authorities are taking steps fo improve the condition of the rally way and its administration, on the general lines contemplated "in the joan agreements, with a view to benefiting both the Government interest and that of the bondholders, Kuo Min, Committee Accepts Offer
Text read from the printed page and cleaned; old type leaves the occasional error.