HC Deb 12 July 1937 vol 326 cc846-8
8. Sir Nicholas Grattan-Doyle

asked the Secretary of State for Foreign Affairs whether, in view of the losses suffered by British holders of the defaulted obligations of the public authorities of Brazil and Mexico, notwithstanding the long-continued but unsuccessful efforts of the Council of Foreign Bondholders on behalf of the issuing houses to obtain redress, he will now, on behalf of the unorganised body of British small investors in Brazilian and Mexican paper securities, take the position in hand officially with the two Governments concerned?

Mr. Eden

As my hon. Friend is aware, the Council of Foreign Bondholders are the recognised representatives of British holders of foreign securities. Any request from the Council for assistance would naturally be examined sympathetically by His Majesty's Government, but so far no such request has been received.

Sir N. Grattan-Doyle

In view of the fact that this question has been asked several times, if I put the question down again will my right hon. Friend be able to give me a fuller answer?

Mr. Eden

The position is that the Government are perfectly ready to give any help they can, but they must first be asked for that help by the authorised body, the Council of the Foreign Bondholders; otherwise we may do more harm than good.

10 and 41. Mr. Liddall

asked (1) the Secretary of State for Foreign Affairs whether he will notify the Brazilian Government that the continued hardships inflicted on British savings invested for the development of Brazilian resources can now be adjusted by using an Anglo-Brazilian exchange clearing, in view of the fact that Anglo-Brazilian trade has since March, 1935, been in the ratio of £7 of Brazilian imports into the United Kingdom as against £10 United Kingdom total exports to Brazil;

(2) the President of the Board of Trade whether he will obtain from the British Chamber of Commerce for San Paulo and Southern Brazil a translation of the proposals for a permanent partial repudiation of foreign debt contracts just published by Senor Boucas; and will he take immediate steps to defend British savings against this treatment by increased customs duties on Brazilian products?

Mr. R. S. Hudson (Secretary, Department of Overseas Trade)

I have been asked to reply. I understand that the proposals referred to in the second question were made by Senor Boucas in a personal capacity, and that conversations are proceeding satisfactorily between the responsible Brazilian authorities and representatives of the bondholders. The question of taking steps to protect the interests of British investors does not, therefore, at present arise. In regard to the question of clearing arrangements, I would refer my hon. Friend to the reply given to the hon. Member for Newcastle-on--Tyne, North (Sir N. Gratton-Doyle), on 23rd June, 1936.

Back to