§ 39. Sir NICHOLAS GRATTAN-DOYLE
asked the Chancellor of the Exchequer whether he is aware that the Brazilian Government propose to create a sterling stock issued in London to meet Brazilian commercial debts; and whether, in view of that government's four earlier defaults, he will inform the Brazilian Government that the proposed issue is not a satisfactory method of carrying out the Anglo-Brazilian payments agreement of 27th March, 1935?
Article 2 of the Anglo-Brazilian Payments Agreement specifically provides that the Brazilian Government will create a sterling stock which will be offered to the creditors concerned, in so far as the arrears of commercial debts are not liquidated in cash. The action suggested by my hon. Friend would, therefore, be inconsistent with the terms of the agreement.