Trump’s New Trade War Weapon Might Just Be Antique China Debt -

Collectors of pre-Communist debt are lobbying the White House to force Beijing to pay up.
CCP has never recognized the debt, tho that hasn’t stopped decade of attempt to collect payment. https://www.bloomberg.com/news/articles/2019-08-29/trump-s-new-trade-war-weapon-might-just-be-antique-china-debt

The Hukuang Railway Bond was sold in 1911 to help fund const. of a rail line stretching from Hankou to Szechuan.
According to the US Bondholders Foundation, China owes over $1 T on the defaulted debt, after adjustment,a sum roughly equivalent to China’s holding of US treasuries

Bond issued in 1911 by a consortium of banks in London, Berlin, Paris & New York.

If CCP refuses to honor the debt, then all the OBOR countries that have just changed new regime can default their debts as well.

@jguaido, here’s Venezuela’s chance.

The last imperial Chinese govt in the Qing dynasty issued the Hukuang Bond, at £6M, just prior to the dynasty’s collapse.
The Bond was ordered by then Minister & Post Administrator Sheng Hsuanhuai, as part of nationalization of all local railways projects

https://www.questia.com/magazine/1P3-3220237791/hukuang-railway-bonds-of-1911

On May 20, 1911, Sheng signed t loan agreement with the 4-nation Banking Consortium and pledged the rights to operate the railroads.

The 4 countries were to share equally in the £6M Bond issue of the Hukuang Railways.
US participation was part of Pres. Taft’s “Dollar Diplomacy”

On the Hukuang Bond, below the minister’s signature, are the underwriting American banks: J.P. Morgan & Co., Kuhn, Loeb & Co., The First National Bank of the City of New York & the National City Bank of New York.

BTW, in 1987, China had settled the debt it owed to the U.K.

Why hasn’t the US government done anything so far?
https://twitter.com/sgwillpower/status/1047298227895062528?s=21

Holding China Accountable-

From 1900 to 1940, the Chinese govt issued £millions in sovereign debt, most notably, a large tranche of £25,000,000 issued at 5% in 1913 Set to mature in 1960 To fund the modernization of its infrastructure.
H/t @MischaEDM

http://www.americanbondholdersfoundation.com/ 

In 1938, China defaulted on its “binding engagement upon the govt of Republic of China & its successor.”

The Chinese bonds in question are held throughout the world by treasuries, banks, Companies & over 20,000 US citizens.

China has violated the Succesor Government Doctrine.

Or by China’s standard, any African, Middle Eastern & South & Central American Countries that have signed One Bribe One Loan can default its debts when the ruling party that signed the deal had lost the election.

China’s refusal to honor its sovereign debt obligation violates its obligation as a member of the World Trade Organization, a membership that requires China to abide international legal norms.

Affirmation of International Obligation-
The People’s Republic of China has refused to pay this debt since 1938.
However,it made good on Its British obligations in 1987 by paying over 20 Million o its bonds & property obligations in order to receive normalization into U.K. market

Security and Exchange Commission (SEC) violations-

China & numerous state-owned & controlled firms participate in US stock markets omitted substantial material info (i.e. selective debt default).

China’s Incomplete Credit Rating-

The Nationally Recognized Statistical RatingOrganizations consistently Accord artificially high ratings to long-term foreign currency debt of the Chinese govt and do not recognize China’s rating.

GOP Senators @SenMcSallyAZ @MarshaBlackburn Introduced Résolution Calling on China to Repay US Bond Holders $1.6 Trillion of Sovreign Debt - https://www.foxbusiness.com/markets/sen-mcsally-introduces-bill-calling-on-china-to-repay-1-6t-of-century-old-debt