§ 30. Sir PHILIP RICHARDSONasked the Secretary of State for Foreign Affaire whether he is aware that in February His Majesty's minister in Warsaw reported that payment of interest upon the 5 per cent. bonds of the city of Vilna would be resumed in May, without condition or reservation, and that it is now proposed to make a differentiation between the holders of bonds that have been registered and those that have not been registered, and whether he will make representations to the Polish authorities that such action amounts to a repudiation of a part of the debt and of promises made to the bondholders, and that all holders should be treated alike?
33. Commander SOUTH BYasked the Secretary of State for Foreign Affairs whether a final agreement has now been reached between the bondholders of the city of Vilna 5 per cent. bonds and the municipality of Vilna, and seeing that the proposed terms of agreement are not in accordance with the understanding under which the original bondholders purchased the bonds, will he make representations to the Polish authorities in order to safeguard the interests of bondholders?
§ Mr. DALTONNo agreement has yet been reached, but the Municipality of 2398 Vilna have now made a definite offer to the bondholders. This offer does indeed contain certain conditions or reservation which were not mentioned last February by the Polish Ministry of Finance to His Majesty's Ambassador. The latter was, however, only making inquiries at that time regarding the interest payment due in May. Whether or not the present offer is acceptable is, of course, primarily a question for the bondholders themselves to decide. My right hon. Friend understands that British nationals, who have held any of these bonds since May, 1924, are now offered new sterling bonds on which interest is to be regularly paid in future, and is virtually guaranteed by the Polish Government. This offer is also made, subject to certain qualifications as to the nationality of the previous holder, to British nationals who have acquired their bonds since 1924. It would, of course, be open to any British nationals, who considered that their bonds had been unfairly refused registration, to bring the particulars to the notice of my right hon. Friend.
§ Commander SOUTHBYDoes not this in fact constitute a refusal to acknowledge the rights of private ownership?
§ Mr. DALTONWe are only concerned with British bondholders, and I confined my answer to them. I am unaware of how large a proportion of these bonds is held by British bondholders, but, in view of the fact that default on these bonds has lasted since 1915, when Vilna was part of Tsarist Russia, and in view of the fact also that British bondholders have now at last a definite offer, I should advise them not to be contemptuous of it, but to look into it.
§ Mr. HANNONMay I ask the hon. Gentleman whether, in fact, the Polish Government are not quite willing to discharge their obligations to genuine British bondholders, but that exception is taken in regard to certain bonds which have been acquired by speculators?
§ Mr. DALTONI am very interested to have that interpretation by the hon. Member, who is an expert on these matters, and my right hon. Friend will take note of it.
§ Commander SOUTHBYWill it be possible to get into touch with the Committee 2399 of British bondholders and to discuss the matter with them? Would the hon. Gentleman receive them if they wanted to communicate with him?
§ Mr. DALTONI should have thought it better for them to look into the matter in the first instance and come to their own decision. My right hon. Friend is always ready to receive representations, but I do not think this offer ought to be turned down without careful consideration.