April 2, 1952 (21st Parliament, 6th Session)


James Sinclair (Parliamentary Assistant to the Minister of Finance)


Mr. Sinclair:

Loans by the government of Canada to the government of China under agreements authorized by part II of the Export Credits Insurance Act totalled $52,215,997.48. The debt bears interest at the rate of three per cent per annum and is payable in thirty annual instalments commencing on December 31, 1948.
The principal instalment due December 31,
1948, was paid in full. Of the instalment amounting to $1,740,000 due December 31,
1949, $1,033,882.50, has been paid. The principal instalments due December 31, 1950, and December 31, 1951, and semi-annual interest payments due after December 31,
1950, have not been paid.
Because of its financial position the government of China requested that payments be deferred for a time and the government of Canada agreed to defer to December 31, 1952, the outstanding unpaid balance of principal and interest due December 31, 1950. Principal and interest payments due since then have been similarly deferred to December 31, 1952, at the request of the government of China. These deferred payments bear interest at three per cent per annum. The present outstanding indebtedness of the government of

China under the loan agreements, including principal and interest payments totalling $6,041,201.42 which have been deferred as mentioned above, amounts to $51,281,201.42.

Subtopic:   LOAN TO CHINA IN 1946
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