HC Deb 06 May 1931 vol 252 cc369-70
6. Mr. HANNON

asked the Secretary of State for Foreign Affairs if his attention has been called to the proposal of the Government of Uruguay to invite the consent of holders of Uruguayan bonds to suspend the sinking fund for the discharge of the bonds consequent upon the fall in exchange; and if he will take appropriate measures through diplomatic channels to safeguard the interests of British interests in those bonds?

Mr. A. HENDERSON

His Majesty's Minister in Uruguay has reported that in a recent address reviewing the financial situation of the country, the President of the Republic suggested the possibility of suspending the amortisation of foreign loans. I understand, however, that there is no question of giving effect to this proposal without the consent of the bondholders.

Mr. HANNON

Will the right hon. Gentleman see that no effect is given to it without consultation with his Majesty's Government?

Mr. HENDERSON

I thought that the bondholders are rather more concerned.

Mr. HANNON

Yes, but is it not the duty of the Government to protect the bondholders in this case?

Mr. HENDERSON

If those who are concerned say that they will not proceed without consulting the bondholders, I think the bondholders should be allowed to protect themselves.