HC Deb 27 November 1934 vol 295 cc679-80
68. Sir CYRIL COBB

asked the Secretary of State for Foreign Affairs whether the Council of Foreign Bondholders has yet arranged for the termination of the default on Chilean Government obligations; and if the council have obtained an agreed settlement respecting the deprivation of contractual rights under Article 3 of the Chilean External Debts Bill?

Lieut.-Colonel COLVILLE

I would refer to the reply given by my right hon. Friend, the Lord Privy Seal, to my hon. and gallant Friend, the Member for Hertford (Sir M. Sueter) on the 12th November. So far as I am aware the position has not changed since then.

Sir A. M. SAMUEL

May I ask whether any protest has been made regarding the attempt of the Chilean Government to break their obligations by their proposal under Article 3 of the External Debt Bill?

Lieut.-Colonel COLVILLE

The position is that a Bill, which is intended to provide for a partial resumption of the debt services, has been laid before the Chilean Senate, but no definite offer has been made by the Chilean Government, nor have they so far initiated negotiations with the Council of Foreign Bondholders. Certain observations which the Council of Foreign Bondholders desire to make on the text of the Bill as published in the Press have been communicated to the Chilean Government.

Sir A. M. SAMUEL

Will the hon. and gallant Gentleman take steps to acquaint the Chilean Government that we cannot allow a unilateral agreement to be forced on British investors against their will?

Lieut.-Colonel COLVILLE

I think we must await the definite proposals of the Chilean Government.