§ 8. Sir John Mellorasked the Secretary of State for Foreign Affairs the nature of the authority upon which the Council of Foreign Bondholders entered into negotiations with the Polish Government with regard to the service of the bonds of the Republic of Poland 7 per cent. Stabilisation Loan Sterling Issue and proceeded to recommend to the bondholders acceptance of a reduction of interest rate and a modification of sinking fund provisions?
§ Mr. EdenI would refer my hon. Friend to Section 4 of the Corporation of Foreign Bondholders Act, 1898, in which the objects and scope of the corporation are set out.
§ Sir J. MellorAs the bondholders have no control over the activities of the Council of Foreign Bondholders, can the Council be truly said to represent the bondholders, and as the Council is not responsible either to the Government or to the bondholders, does the right hon. Gentleman think it desirable that the activities of the Council should prejudice the rights of the bondholders by entering into these negotiations?
§ Mr. EdenI do not think I can accept the last part of my hon. Friend's supplementary question. The Council has done a great deal of valuable work at different times for foreign bondholders, and I have here the text of the Act to which I referred, in which my hon. Friend will find the authority fully set out.