HC Deb 16 November 1931 vol 259 cc484-5
13. Rear-Admiral SUETER

asked the Secretary of State for Foreign Affairs if he will instruct His Majesty's Ambassador at Rio de Janeiro to ascertain from the Brazilian Government whether it is their intention to give any special consideration to their obligations in respect of sinking funds attached to the loans raised in Great Britain by the Brazilian Government, state and municipal authorities between the dates of the second and third defaults by Brazil, apart from the funding loans arising from the second default?


Only one Federal Loan raised in this country during the period in question is in default, the 6½ per cent. loan of 1927, and there does not appear to be any ground for demanding special consideration in regard to it. I understand that the default is due mainly to the difficulty of procuring foreign exchange. My right hon. Friend is advised that no general default has taken place in respect of state and municipal obligations.


Is the hon. Member aware that the sinking fund operations were part of the original consideration on the granting of the loan?


Yes, Sir, but this loan was not given any priority on any particular branch of revenue. Therefore, no special consideration can arise.


Is the hon. Member aware that the contract has been broken and no compensation has been paid in respect of sinking fund operations?