HC Deb 13 June 1932 vol 267 cc5-7
13. Sir ARTHUR MICHAEL SAMUEL

asked the Secretary of State for Foreign Affairs if he, will, for the guidance of British investors who have entrusted their savings to the Chilean Government, obtain from that Government information as to its intentions respecting foreign capital?

15. Mr. COCKS

asked the Secretary of State for Foreign Affairs whether he can give any information regarding the situation in Chile?

18. Mr. TURTON

asked the Secretary of State for Foreign Affairs if he has any information regarding the present situation in Chile and the attitude of the present Chilean Government towards British trade and the money invested by Great Britain in Chile?

The UNDER-SECRETARY of STATE for FOREIGN AFFAIRS (Mr. Eden)

President Montero's Government was overthrown on the 4th of June as a result of a coup d'etat executed by the Air Force and Army, and has been replaced by a Junta of three persons who have appointed a Cabinet. Decrees have been issued (1) declaring the Central Bank to be a State Bank, retiring the shares of Chilean and foreign banks and private individuals at their nominal value and giving bonds in exchange suppressing the Directorate and arrogating complete control to the Junta and (2) similarly taking over all foreign currency deposits in all banks. His Majesty's Government have not entered into official relations with the present Government, but His Majesty's Chargé d' Affaires has been instructed to inform them that His Majesty's Government take a most serious view of these confiscatory measures and, if they are carried through, will strongly support a demand for full compensation for the British interests affected. In reply to similar representations respecting the protection of British lives and property, His Majesty's Chargeé d' Affaires has received an assurance that adequate police protection will be provided for British subjects. As regards the external debt obligations of Chile, it is clear that in the present circumstances an inquiry in the sense suggested by my hon. Friend the Member for Farnham (Sir A. M. Samuel) would serve no useful purpose, but this aspect of the matter will be kept constantly in view.

Sir A. M. SAMUEL

Would it not be helpful if His Majesty's Government, with the United States Government and perhaps the French Government, were to intimate to the Chilean authorities that they do not intend to recognise this Government?

Mr. EDEN

I think the answer that I have just read out will be well understood.

Mr. COCKS

Is it not better for the Government to send a message of congratulation and welcome to the new Socialist Government in Chile?

Mr. EDEN

I leave that to my hon. Friend opposite.

Mr. TURTON

Will my hon. Friend intimate to the Chilean Government that any measures taken prejudicial to British trade and finance will be met by a higher tariff against Chilean goods?