§ 27. Sir N. Grattan-Doyleasked the Secretary of State for Foreign Affairs whether, in view of the national losses caused by foreign Governments defaulting on loans raised for developing their countries, he will ask the United States of America, France, and Holland to join with this country in refusing to admit the products of those defaulting countries 19 until an acceptable debt rearrangement has been reached, with a view to assisting the rehabilitation of international trade created by foreign loans; as, although this may result in temporary loss of export trade to the creditor countries, it will compel debtor countries to feel the effect of their debt repudiation on their own-trade?
§ Sir J. SimonI agree with my hon. Friend that in cases of default it is desirable for His Majesty's Government to act, so far as possible, in co-operation with the other creditor countries concerned, and this is the existing practice. The appropriate action to be taken to defend the interests of British bondholders is a matter for consideration in each case in the light of all the relevant circumstances. I do not, however, consider that a proposal on the lines suggested by my hon. Friend would be likely to achieve the results desired.