§ 5. Sir J. Mellorasked the Secretary of State for Foreign Affairs whether the 1581 Council of Foreign Bondholders consulted the British Government before recommending to holders of bonds of the Republic of Poland 7 per cent. Stabilisation Loan Sterling Issue acceptance of a reduction of interest rate and a modification of sinking fund provisions as proposed by the Polish Government; and whether, in view of the balance of trade between Poland and the United Kingdom being in favour of Poland, he will represent to the Polish Government that the proposed departure from its contractual obligations is unnecessary and injurious to the credit of Poland?
§ Mr. EdenThe answer to both parts of the question is in the negative. I would remind my hon. Friend that, while the Council of Foreign Bondholders are in very close touch with the Foreign Office and the Treasury, who at all times are ready to give to the council their fullest support, the responsibility for recommending settlements to the bondholders rests with the council. I am satisfied that this procedure is in the best interests of all concerned
§ Sir J. MellorIn the circumstances, will my right hon. Friend consider setting up a clearing office for Anglo-Polish payments, and will he request the Council of Foreign Bondholders to publish their reasons for making the recommendations to the bondholders referred to in the question?
§ Mr. EdenI do not think I can do either of the things that my hon. Friend asks for. The matter is one for arrangement between the representatives of the bondholders and the governments concerned. Our policy is only to help.
§ Sir J. MellorWhat authority has the Council of Foreign Bondholders to speak on behalf of the bondholders?