§ 14. Sir CHARLES CAYZERasked the Secretary of State for Foreign Affairs what steps he has taken to impress upon the Brazilian Government the hardship which is being experienced by British investors who entrusted their savings to the good faith of the State of Rio de Janeiro, whose obligations have now been in default for some years; and will he notify the Brazilian authorities that fresh Brazilian loans will not be permitted to be issued in the United Kingdom unless these and similar defaults by Brazilian public authorities have been brought to an agreed conclusion?
§ The SECRETARY of STATE for FOREIGN AFFAIRS (Sir John Simon)The foreign debts of the State of Rio de Janeiro are covered by the scheme for the consolidation of all the Brazilian Federal, State and municipal debts, which has been put before the Provisional President of Brazil by the Minister of Finance. No representations have been made to the Brazilian Government in regard to the debt of Rio de Janeiro, as it has been considered essential to await the publication of the final decision of the Brazilian Government in regard to the general scheme referred to above, before considering the desirability of taking this step. As regards the second part of this question, as my hon. Friend is aware, no issues involving remittance abroad are being made on the London market, and the question therefore does not at present arise.