IV 
110TH CONGRESS 
1ST SESSION 
H. CON. RES. 160 
Regarding the endorsement of U.S. citizens’ claims for payment by Chinese 
Government of defaulted Chinese bonds. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 24, 2007 
Mr. LINCOLN DAVIS of Tennessee submitted the following concurrent 
resolution; which was referred to the Committee on Financial Services 
CONCURRENT RESOLUTION 
Regarding the endorsement of U.S. citizens’ claims for 
payment by Chinese Government of defaulted Chinese bonds. 
Whereas China issued full faith and credit long term (e.g. 47 
years) sovereign government bonds from 1913 through 
1938, with the following language printed on the face of 
each of these bonds and the original loan agreement, 
‘‘These obligations are intended to be binding upon the 
Government of China and any successor government’’, 
and were sold to investors based upon these representa-
tions; 
Whereas the established conventions of international law with 
respect to the obligation of a successor government to 
honor the full faith and credit sovereign obligations of a 
predecessor government is a fundamental tenet of inter-
national trade and commerce; 
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Whereas on March 31, 1921, the New York Times advertised 
the sale and purchase of these bonds on behalf of Cowen 
& Company to United States citizens; 
Whereas on April 20, 1921, the New York Times published 
a display ad advertising these bonds for sale to United 
States citizens on behalf of Pynchon & Company, a reg-
istered member of the New York Stock Exchange; 
Whereas on April 26, 1921, the New York Times advertised 
the sale and purchase of these bonds to United States 
citizens on behalf of Bull & Eldredge, a registered mem-
ber of the New York Stock Exchange; 
Whereas on May 22, 1921, the New York Times published 
an advertisement for the sale and purchase of these 
bonds to United States citizens for Ernest Smith & Com-
pany-Dealers in Foreign Government Bonds; 
Whereas on October 18, 1924, the New York Times pub-
lished the ‘‘Bid and Asked quotes’’, for these bonds; 
Whereas on November 11, 1932, the New York Times pub-
lished the price and yield of these bonds for the previous 
days trading; 
Whereas China defaulted on all of its public debt in 1939; 
Whereas the People’s Republic of China (in this resolution re-
ferred to as ‘‘PRC’’) became the official government of 
China, assuming its assets as well as its liabilities in 
1949; 
Whereas in 1955, the People’s Republic of China issued an 
official communique from the Minister of Foreign Affairs 
and the Minister of Finance addressed to all Chinese em-
bassies around the world advising that the PRC had not 
the ability to pay this debt burden (U.S. translation from 
Mandarin Chinese); 
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Whereas the People’s Republic of China replaced the Repub-
lic of China in the United Nations as the officially recog-
nized government of China on November 23, 1971, and 
was subsequently recognized as the government of all 
China; 
Whereas in 1979, the Chinese Government negotiated a Trea-
ty with the United States providing compensation to U.S. 
Nationals who suffered a taking of property by the gov-
ernment of the PRC. Because no positive action was 
taken as of the date of the Treaty by the government of 
the PRC, with respect to the debt, the bonds were ex-
cluded from the scope of the Treaty, (Title V of the 
International Claims Settlement Act does not provide any 
statutory authority for the Foreign Claims Settlement 
Commission to address takings prior to 1949, therefore, 
lacking authority to negotiate the settlement of the de-
faulted bonds of the PRC); 
Whereas in 1983, the People’s Republic of China, Minister of 
Foreign Affairs issued an official Aide Memoire to the 
United States Department of State asserting that the 
PRC should have no obligation to pay the debts and ad-
vising that they would hold the U.S. Department of State 
and the United States Government responsible should the 
PRC be required to honor this debt and demanded that 
the PRC be protected from suit in United States Courts 
on this issue citing a mandate of Sovereign Immunity 
Protection for the PRC, which has subsequently contin-
ued to be upheld in the United States court system; 
Whereas the government of the People’s Republic of China 
concluded a discriminatory settlement of these bonds with 
respect to British bondholders in 1987, and which ex-
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cludes United States bondholders from participation. 
This is known as the 1987 China-Brit Treaty; 
Whereas on May 24, 2000, the United States granted Perma-
nent Normal Trade Status to the People’s Republic of 
China; 
Whereas on December 22, 2000, notices from the law firm 
of Stites & Harbison were submitted to the United States 
Securities and Exchange Commission (in this resolution 
referred to as ‘‘SEC’’), the White House, United States 
Department of State and the Federal Trade Commission 
seeking their assistance in the collection efforts of Chi-
na’s defaulted sovereign debt; 
Whereas on January 29, 2001, U.S. Senator Bill Frist sent 
written notice to the SEC expressing support of this col-
lection effort and requesting the SEC to actively assist 
on this issue; 
Whereas on June 13, 2001, the SEC, working jointly and col-
lectively with the State Department, the National Secu-
rity Council and the Senior Associate Counsel to the 
President recommended seeking the assistance of the 
Foreign Bondholders Protective Council (in this resolu-
tion referred to as ‘‘FBPC’’) to assist in the collection ef-
forts of this claim. The FBPC was enacted under Presi-
dential Executive Order in 1933 by President Franklin 
D. Roosevelt to assist U.S. citizens in collecting on for-
eign defaulted debt. The FBPC with the U.S. Govern-
ment’s endorsement has successfully settled over 40 bond 
settlements for U.S. citizens from defaulted bonds issued 
by foreign governments; 
Whereas on August 16, 2001, the American Bondholders 
Foundation, LLC (in this resolution referred to as 
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‘‘ABF’’) was created to represent the consolidated efforts 
of bondholders holding defaulted sovereign obligations of 
the People’s Republic of China; 
Whereas on February 5, 2002, the ABF through its legal 
representatives Stites & Harbison, PLLC made formal 
written demands to the PRC requesting fair settlement 
of these claims. Several subsequent notices have been 
sent since that time, all of which the PRC has continued 
to ignore and evade the issue; 
Whereas on May 17, 2002, the United States Congress, initi-
ated by Congressman Bart Gordon, sent written notice to 
President George W. Bush supporting the efforts of the 
ABF to receive a fair settlement from the PRC and re-
questing action by the Administration to hold the Chinese 
Government accountable to American citizens for a fair 
resolution of their claims as holders of defaulted Chinese 
Government bonds. This letter was endorsed by over 50 
members of the United States House of Representatives; 
Whereas on September 25, 2002, Congressman Walter Jones 
submitted H. Con. Res. 485 requesting the United States 
Government to take appropriate action to urge the PRC 
to provide for a fair resolution of the claims of United 
States citizens holding defaulted Chinese Government 
bonds. Congressman Walter Jones and several other 
Members of Congress held a press conference outside the 
Cannon House Office Building to announce the resolu-
tion. This resolution was assigned to the Committee on 
Financial Services and was endorsed and supported by 
Chairman Michael Oxley, however, was unable to be en-
tered onto the calendar for hearings prior to the ending 
of the 107th Congress; 
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