HC Deb 27 March 1934 vol 287 cc1810-2

asked the Secretary of State for Foreign Affairs whether he is aware that revision of the tramway and ferry rates of the Leopoldina Terminal and Cantareira Companies has been under discussion for two years; and whether he will ask the Consultative Council of the State of Rio de Janeiro, which has already received the report of the commission of inquiry, why it has not yet been possible to remedy the hardship of British nationals who have invested in the two above-named companies?


Yes, Sir. As regards the second part of the question, the Leopoldina Terminal Company have been consulted. The company are handling this matter direct, and no action on the part of His Majesty's Government is called for in the circumstances.


Is the hon. Member aware that the failure of the Brazilian Government to implement the agreement is a breach of faith towards British subjects?


My hon. Friend will appreciate that we are in touch with the company. The company would deprecate official action, and we do not propose to take it.


asked the Chancellor of the Exchequer whether the Government proposes to take independent steps to defend the holdings of British private investors in the German (Young) Loan of 1930, in view of the fact that the proceeds of that loan were used by the Exchequer, and the German Government has already defaulted in its sinking fund obligations on this loan?


The German Government International 5½ per cent. Loan, 1930, is an unconditional liability of the German Government, and no liability in respect of it attaches to His Majesty's Government. I assume that the preferential treatment accorded to the loan since July last will, under all circumstances, be continued and that sinking fund payments will be resumed as soon as possible, and on this assumption I do not consider that any intervention on the part of His Majesty's Government is called for at present.


Is there not a moral obligation, in view of the Treasury Minute of 1930?


Obligation to do what?

59. Mr. REMER (for Mr. CULVER-WELL)

asked the Secretary of State for Foreign Affairs whether he will request the German Government to inquire of the authorities of the city of Hamburg how they propose to make good the default imposed by unilateral action upon the British creditors of the city of Hamburg, in relation to the waterworks loan of the city of Hamburg subscribed by private British investors in reliance upon the good faith of the city of Hamburg?


It was stated in the official communique issued by the Reichsbank on the 31st January last, and published in the London Press of the 1st February, that it was proposed to convene a meeting of representatives of the bondholders of the German long and medium-term loans (which include the loan to which my hon. Friend refers) early in April, with a view to arriving at a basis for dealing with the debt service which would eradicate the weaknesses of the existing system and at the same time lay the foundation of a permanent settlement. In these circumstances His Majesty's Government do not appear to be called upon to intervene at the present time.