As per recent interview with Matt Cutts, the debate over the passage of link value and page rank with 301 redirects has been made more clearer. As per Matt Cutts the 301 redirects do not fully pass the page rank and values. Even though he is not 100% sure about the answer, he didn’t ignore the possible loss of page rank value as a result of the 301 redirects. During the interview Matt Cutts also stated that he was not sure whether the crawling and indexing team has implemented any sort of such natural page rank decay. But later in a follow email he stated confirmed that the fact was true.