§ 36. Sir CYRIL COBBasked the Secretary of State for Foreign Affairs what steps he proposes to take to protect British investors who have been compelled to submit to a unilateral arrangement upon defaulted Brazilian bonds, in view of the fact that, while the unilateral arrangement will be maintained, the resumption of Brazil's full contractual obligations has been hindered by the granting to the United States of America by Brazil of priority in merchandise transactions which will reduce the exchange available for full service on Brazilian loans raised in Britain?
§ The LORD PRIVY SEAL (Mr. Eden)The exchange position in Brazil has been the subject of special study and representations are being addressed to the Brazilian Government with a view to ensuring that British interests shall not receive less favourable treatment than those of other countries. My hon. Friend will, however, recall that the existing arrangement for the partial service of the Brazilian external debt covers a period 957 of four years from the 1st April last. It therefore appears improbable that the exchange regulations recently introduced in Brazil will exercise any immediate effects on the interests of British bondholders.