§ 14. Sir CYRIL COBB
asked the President of the Board of Trade whether, 1172 in view of the four defaults followed by the scaling down of the services of Brazilian loans imposed upon British investors, any and, if so, what arrangement has been made to prevent default upon the 4 per cent. registered Brazilian stock to be offered to creditors under the recent Anglo-Brazilian Payments Agreement so as to safeguard those who may purchase the stock of the original allottees?
§ Mr. RUNCIMAN
Under the provisions of the Anglo-Brazilian Payments Agreement the Brazilian Government have undertaken to set aside an annuity for the service of the stock out of the foreign exchange reserved for Brazilian Government requirements. It is expected that the stock will be fully redeemed within five years.
§ Sir ARTHUR MICHAEL SAMUEL
Is my right hon. Friend aware that on four separate occasions in the last 30 years the Brazilian Government have made similar arrangements and defaulted on four occasions?