§ 3. Sir NICHOLAS GRATTAN-DOYLEasked the Secretary of State for Foreign Affairs whether he is aware that British subjects have not yet received any income in respect of the defaulted obligations of the State of Rio de Janeiro; and will he direct His Majesty's Ambassador to inquire in Rio as to the reasons for the delay and ask for a settlement?
§ Mr. EDENI am aware that the position is as stated by my hon. Friend. I should explain that negotiations for a settlement of the obligations of the State of Rio de Janeiro have been suspended pending consideration of a scheme that would include all the external debts of Brazilian States and municipalities. This scheme is understood not yet to have been put forward in definite form, but is 1747 still under discussion by a commission. In these circumstances, I do not consider that any useful purpose would be served by action on the lines suggested by my hon. Friend in the second part of his question.
§ Mr. HANNONIs it not a fact that for several years several of the States in Brazil have defaulted in the discharge of their obligations to this country, and is my hon. Friend keeping that situation in view in the negotiations which are proceeding?