HC Deb 29 November 1937 vol 329 cc1670-1
13. Mr. Liddall

asked the Secretary of State for Foreign Affairs whether he is aware that the income on our investments in foreign countries helps to maintain our national standard of living; and will he, in order to defend that standard, intervene by more definite diplomatic assistance to meet the treatment by Brazil and Argentina of British investments, which is depriving British nationals of their income, the British Exchequer of Income Tax and revenue from Death. Duties, owing to the wiping out of capital values?

Viscount Cranborne

My right hon. Friend is aware of the issues involved. When British interests are threatened by the direct unilateral action of a foreign Government, His Majesty's Government are always ready to take energetic steps to protect such interests. The hon. Member will be aware of the representations recently made to the Brazilian Government in regard to the suspension of the service of the external debt. No such question arises in the case of the Argentine. The position of British capital invested in public utility companies is, as my hon. Friend will appreciate, some- what different. In this case, direct negotiations between the companies and the foreign Governments concerned constitute, in the opinion of His Majesty's Government, the best method for dealing with the questions involved. My right hon. Friend is, however, always ready to give any assistance that is possible at the request of the companies.

Mr. Shinwell

Is it not difficult for the countries concerned to meet their liabilities in regard to British investments if we insist on placing restrictions on the importation of their goods into this country?

Captain A. Evans

Have His Majesty's Government had any further reply from the Brazilian Government on the representations which they have made?

Viscount Cranborne

I should like notice of that question.

Mr. Shinwell

Has the Noble Lord any difficulty in answering my simple question?

35. Sir Nicholas Grattan-Doyle

asked the Secretary to the Overseas Trade Department whether he will request His Majesty's commercial secretary at Rio de Janeiro to provide a report on the position of those Brazilian railways in which British capital is invested; and will he inform the Brazilian Government that His Majesty's Government will require that the treatment of British capital in those railways shall be part of any proposals of the Brazilian authorities in respect of the defaulted Brazilian public obligations to British subjects?

Viscount Cranborne

I have been asked to reply. With regard to the first part of the question, I would refer my hon. Friend to the publication of His Majesty's Stationery Office entitled "Report on Economic and Commercial Conditions in Brazil," dated September, 1936. It is hoped that it will be possible to publish a similar report for the year 1937. As regards the second part of the question, I would refer my hon. Friend to the reply which I have to-day given to a question by the hon. Member for Lincoln (Mr. Liddall).