HC Deb 27 February 1934 vol 286 cc921-2
26. Colonel WEDGWOOD

asked the Secretary of State for Foreign Affairs whether, in view of the losses inflicted upon British investors who have lent their savings to the public authorities of Germany and Brazil in long-term loans floated here, he will delegate to suitable members of his Department, independently of the houses which issued the loans, the duty of watching and representing the interests of British nationals now that unilateral decrees of default have been imposed upon them; and will he maintain this organisation to deal with future similar cases of default?

The SECRETARY of STATE for FOREIGN AFFAIRS (Sir John Simon)

The right hon. and gallant Gentleman is to put a question on a similar subject presently to my right hon. Friend, the Chancellor of the Exchequer. I think that both questions can most conveniently be answered together, and I would therefore ask him to await the reply which my right hon. Friend is about to give.

35. Colonel WEDGWOOD

asked the Chancellor of the Exchequer whether, in view of the fact that 58 foreign States are now in default on their obligations to British subjects and of the non-success of the unofficial organisations and flotation houses to defend effectively the rights of British holders of foreign securities, he will constitute at the Treasury from existing staff, and jointly with the Foreign Office, a permanent department, to act in concert with the flotation houses but independently of them, to defend British holders of foreign investments?

Mr. CHAMBERLAIN

I have carefully considered the right hon. Gentleman's suggestion, but I do not think that it would be desirable to adopt it. The Treasury and Foreign Office keep a careful watch on these questions, and His Majesty's Government are always ready to consider the question of intervening if there is discrimination against British interests, or if any other special reason for intervention exists.

Colonel WEDGWOOD

Has there not been discrimination in Germany's payments, and may I ask what has been the good result of the careful attention that the Foreign Office and the Chancellories have paid to this matter in the past?

Mr. CHAMBERLAIN

I thought the right hon. and gallant Gentleman would probably be aware that at a recent meeting an agreement was come to with the Germans on the subject, and I had every reason to suppose that that was considered to be a very much more satisfactory arrangement to the creditors than existed up till then.

Colonel WEDGWOOD

That was an arrangement come to by the creditors and not by the Government. The Government had nothing to do with it, and they can hardly describe it as a satisfactory arrangement.