Oral Answers to Questions — Brazil (British Bondholders).

– in the House of Commons on 6th April 1937.

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Photo of Sir Nicholas Grattan-Doyle Sir Nicholas Grattan-Doyle , Newcastle upon Tyne North

asked the Chancellor of the Exchequer whether he is aware that the Brazilian Government is again about to impose upon British holders of defaulted Brazilian obligations terms for the extension of the default; and will he, as the Council of Foreign Bondholders has failed to prevent unacceptable terms being forced upon British creditors, appoint a Treasury official to watch the interests of British investors who continue to lose by the repeated defaults of the Brazilian Government or, alternatively, set up an exchange clearing?

Photo of Mr Neville Chamberlain Mr Neville Chamberlain , Birmingham, Edgbaston

In reply to the first part of the question, I understand that the Council of Foreign Bondholders have been informed that it is the intention of the Brazilian Government to negotiate with the Council and to reach an agreed arrangement concerning the future service of the external debt of Brazil to take effect on the expiration of the present plan. In reply to the second part of the question, I would refer my hon. Friend to the answers given to my hon. Friend the Member for Lincoln (Mr. Liddall) on 5th November last and to the hon. Member for West Newcastle-upon-Tyne (Mr. Leech) on 26th January last. I see no reason to depart from the view that it would not be desirable for His Majesty's Government to intervene in this matter, but they would be willing to give suitable assistance if asked to do so by the Council of Foreign Bondholders.