Chungking, Jan. 16. STATEMENT announcing the deferment of payment on loans secured on the Chinese Customs Revenues has been issued here by the official spokesman of the Ministry of Finance, For over a year, the statement says, the Japanese authorities, despite their assurances, have been detaining revenues pledged for debt service collected in areas under their military occupation, with the exception of a single remittance from the Shanghai Customs last June.
In order to make up the amount that should have been remitted from these areas, the Chinese Government advanced about $175,000,000.
The Central Bank of China, moreover, provided for all the foreign exchange required, though the Japanese authorities have been interfering with' the Chinese currency, forcing the acceptance of several forms of yen which have reduced collections in legally valid currency to which obligations of the Government have been secured.
The Chinese Customs authorities, notwithstanding all the difficulties of the Chinese "Government, provided the servi the China's debts, thereby. demonstrating. the utmost considera tion for holders of its obligations, the statement goes on.
Under the existing conditions, the statement adds. the Chinese Govern-tment has very reluctantly been forced. to. the conclusion that "this Situation has become too anomalous to. be continued. Therefore, the Government has been obliged reject the request of Sir Frederick Maze, Inapector-General of Customs, for a further advance."
The Chinese Government does not Intend fo make no payments towards the loans secured on the Customs, but intends to limit Its payments to a proportion of the whole debt, in kept since the AngloJapanese agree ment.
The deferment which practically amounts to a temporary and partial moratorium "on foreign Toans also affects three Issues of domestic Government bonds secured by the Customs reverie, it was pointed out. These are the "Consolidated," "Reconstruction" (issued in 1987) and the "Long Term Currency" Bonds. Their prices dropped $4 yesterday the "unomcial™ bond market Shanghai 'While expressing the hope that the Powers concerned might' intervene with the Japanese, regrets were expressed that the Chinese Gov Ment did not instruct Sir Federick Maze, (o sign a supplementary soree revenues in the areas under their Providing that part of the Customs tatie. to the receipts from Customs ment with the Japanese last year
Sccralend oe (eat Cuow re The Government i, therefore, pre- Hepes ty ced city Goreme sort or; ibis the nye tore wa share of the long-term debt service, money in their bank sir the Central Bank of China as their Chinn the "Japanese "hed heat te Pledged to the payment of all such the Bie suldanding before We" howe Algh te Put Te Otter Purpsey ile Itt, one, the statement] Farr, expe by te one Fear, aod exireno
share from the areas under Japanese © drag on there might not be enough occupation may be similarly forth- Customs money in the Japanese bank coomestinn_y_be_snticy OnG er coisas stlgn stiptions the Chinese currency will cease, war is proving costly to the Japanese lat the service of these debts may be military authorities who are spending similarly eflected. fon a lavish scale, It would be unthinkable, it was stated, thatthe This measure, the statement con-Japanese might be forced to use at] etudes, is a temporary arrangement, in. view the present abnormal conditions Reuter.
According to the Evening Nown" yesterday, the Jepanese "are Japanese Defence refusing to pay China's foreign debts Following a statement made by the with the Customs fund in the Yoko: Embassy spokesman at the Japanese hama Specie Bank on two protext Press Conference on Scturdny. that First, China has. refused to pay. the the Japanese authorities were unable Japanese portion" of the " Boxer to service foreign loans on the Chie Indemnity, "Second, China has. nese Customs been use the Chungking fused to deposit the $20,000,000 kept Government had not executed the by the "Hongkong and Shanghai AngloJapanese Agreement ut May 3 Banking, Corporation with the Japan= ese bank. fast year, several further questions lating io the Customs issue were While Ching is thus trying to deter asked at yesterday's conference. payment on foreign loans she Is, at question a eorrespo the same time, trying to prevent wat the Chungking Government bank notes from being thorities had made it clear that they circulated in Shanghai and. other could not service the foreign loans Seeupied areas. was learnt yes eentue of lost of revenue, If the terday that part of the, principal of Chinese authorities carried out their the "Consolidated Bond" that ought part would the Japanese be prepared to be pald this month (amounting to do the same? he asked. '$51,000,000) would be pald by the Government despite the deferment Replying, the spokesman said lat statement but that the interest of it the agreement was concluded with would be pald in Chungking in keep-the intention of carrying out its terms ing with the new policy. and it went without saying that If tone side observed there terms the Details regarding the new regulas other one would do so. tions governing the payment of interest' of domestic bonds which Default in March? veeently caused a stir here are being holders with keen interest, Continuing, the corresponding askment if the Chungking authorities were {0 Break the deadlock, snd reply. the spokesman stated' that he had not been informed of any new difilties "la. the service of foreign the Japanese and ents but he believed that the Japanese authorities were prepared to carry out the terms of the agreement. Special questions had arisen, however, and he did not wish {to commit himself to any final statement.
Text read from the printed page and cleaned; old type leaves the occasional error.