HC Deb 18 July 1935 vol 304 c1227
65. Sir C. COBB

asked the Secretary of State for Foreign Affairs whether the Chilean Government has taken the necessary steps to meet its engagements on its defaulted bonds in accordance with the arrangements made with the Council of Foreign Bondholders on behalf of British creditors?

Mr. EDEN

Negotiations have recently been taking place between the Council of Foreign Bondholders and a Mission from Chile, regarding the Chilean law which provides for partial resumption of the foreign debt service. The results of these negotiations were announced by the Council in a statement which was published in the Press on 7th June. I understand that no definite arrangement has been concluded between the parties, though the Chilean Mission gave certain assurances regarding the technical application of the above mentioned law. No further steps can apparently be taken until negotiations between the Chilean Government and other bondholders have been completed, and until the amount of funds becoming available under the law is made known.

Mr. MORGAN JONES

Is this also a way of balancing the Budget?