§ 12. Sir Nicholas Grattan-Doyle
asked the Secretary of State for Foreign Affairs whether, in view of the fact that the Council of Foreign Bondholders is self-appointed, and represents not so much the investors as the concerns which, as agents for the Brazilian authorities, sold the Brazilian paper to the public, he will reconsider his decision not to take any action to protect the thousands of British holders of Brazilian securities until requested to do so by the Council of Foreign Bondholders?
§ Mr. Eden
At the request of the Council of Foreign Bondholders representations were made to the Brazilian Government, and it was hoped that these representations would have resulted in no action being taken by the Brazilian Government to suspend payment of the external debt pending negotiations with the 836 foreign bondholders. Unfortunately, the latest information, which I have just received from His Majesty's Representative at Rio de Janeiro, indicates that a definite decision has been taken by the Brazilian Government to suspend payment pending the conclusion of a new agreement. His Majesty's Government have under serious consideration the new situation which has thus arisen. I would add that the Corporation of Foreign Bondholders, the constitution of which is governed by Act of Parliament, is not a self-constituted body, and represents investors and not the issuing house.