{Continued from page 7)
Maze, to sign a supplementary zgrecwith the Japanese last year providing that part of the Customs revenue should be kept and paid on time to the Powers concerned to dually clear up China's foreign debs. As Tokyo agreement not implemented by another one in China, the Japanese had kept the money in their bank since then.
Might Be Put To Other Purposes Fears were expressed by the same circles that should the matter be left to drag en there might not be enough Customs money in the Japanece bank for China's foreign obligations as the war is proving costly to the Japanese military authorities who are spending on a lavish scale. It would be unthinkable, it was stated, that the Japanese might be forced to use the Chinese Customs money.
According to the "China Evening News" yesterday, the Jepanese are refusing to pay China's foreign debts with the Customs fund in the Yokohama Specie Bank om two pretexts First, China has refused to pay the Japanese portion of the Boxer Indemnity. Second, China has refused to deposit the $20,000,000 kept by the Hongkong and Shanghai Banking Corporation with the Japanese bank.
While Ching is thus trying to defer payment on foreign loans she is, at the same time, trying to prevent Government bank notes from being circulated in Shanghai and other occupied areas. It was learnt yesterday that part of the principal of the "Consolidated Bond" that ought to be paid this month (amounting to $51,000,000) would be paid by the Government despite the deferment statement but that the interest of it would be paid in Chungking in keeping with the new policy.
Text read from the printed page and cleaned; old type leaves the occasional error.