§ 50. Mr. BURNETT
asked the Chancellor of the Exchequer whether he will arrange that any payment by the Brazilian Government in relation to commercial debts due to British subjects should not be met by the issue here of Brazilian bonds which reduce the amount of exchange available to meet the service of the Brazilian loans upon which four separate defaults have been made, unless the Brazilian Government restores the full service on their earlier debts, in respect of which an unacceptable unilateral arrangement has been imposed upon British investors?
§ The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)
I would remind my hon. Friend that the liquidation of arrears of commercial debts in accordance with the terms of the Anglo-Brazilian payments agreement of 27th March, 1935, involves a smaller immediate charge on the sterling resources of Brazil than would be involved by the normal payment of such debts in cash on their due dates. Accordingly the issue of Brazilian stock in accordance with Article 2 of the agreement will tend to increase, rather than reduce, the amount of exchange available to meet the current service of Brazilian loans.