The Emperors Old Bonds - Pre-1950 Debts of Imperial Chinese Government

Abstract

You have requested my advice on (a) the possibility of lawsuits against the Peoples Republic of China (“PRC”) by holders of the pre-1950s bonds issued by the Imperial Chinese Government (“ICG”) (the “IGC Bonds”) and whether PRC need to be concerned about such suits in the United States of America (U.S.); (b) the primary barriers to such suits and possibility of surmounting them; and (c) whether there are specific bond issuances that are especially vulnerable to such suits. In my view, the PRC should be concerned, because of (i) the Trump Administration’s stance on relations with PRC and (ii) recent opinions of U.S. courts softening some of the barriers barricading the PRC and potential plaintiffs. However, despite the foregoing, I am of the opinion, that PRC can continue to assert its absolute immunity, and should it decide to defend any such suits, raise any of the defenses discussed in the succeeding paragraphs.