HC Deb 03 March 1936 vol 309 cc1171-2
14. Sir CYRIL COBB

asked the President of the Board of Trade whether, 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?

Mr. DAY

Will the right hon. Gentleman say what is the amount of the annuity?

Mr. RUNCIMAN

I could not say without notice.