§ MR. M'COANasked the Under Secretary of State for Foreign Affairs, Whether, although in 1876 no fewer than seventeen Foreign States, including most of the South American Republics, Mexico, three of the United States, Greece, and Turkey, were in default for a total of nearly £400,000,000 of loans contracted mainly or altogether in England, any (and, if any, would he state what) diplomatic or other action was then or has since been taken by Her Majesty's Government on behalf of the British creditors of those States; whether, especially, any such action was taken by this Country and France against the Porte when, in 1876, the interest on £86,000,000 of its public debt was, by a stroke of the Grand Vizier's pen, reduced from 5 per cent, to 2½ per cent., even of which latter rate nothing has since been paid, or on the subsequent suspension of the payment of both interest and sinking fund on its other loans, amounting in all to above £100,000,000 more, nearly all borrowed in England and France; and, whether there is any precedent in international finance for the joint action of the British and French Governments on behalf of the bondholders of Egypt since 1876 to the present time?
§ LORD EDMOND FITZMAURICEThe action of Her Majesty's Government in regard to the claims of foreign bondholders is regulated by Lord Pal- 905 merston's Circular Despatch of January, 1848. What has passed in regard to most of the loans alluded to by the hon. Member is recorded in the Papers which, from time to time, have been laid before Parliament. I do not admit that Her Majesty's Government have interfered in Egypt on behalf of the bondholders; but they have interfered in Egyptian finance, because it is impossible to separate the financial from the political condition of the country.
§ MR. M'COANsaid, the noble Lord had not answered his Question, whether there was any precedent in international finance for the joint action of the British and French Government on behalf of the bondholders of Egypt? He would remind the noble Lord that the ex-Khedive was deposed for his refusal to assent to certain arrangements in the interests of the bondholders. ["Order!"]
§ LORD EDMOND FITZMAURICEsaid, the whole of the Question on the Paper was of an argumentative character; and the hon. Member asked him to answer about matters relating to 13 different States. The only thing which he could do was to refer the hon. Member to information which was just as much open to his inspection as it was to that of the Under Secretary of State for Foreign Affairs.