HC Deb 20 June 1938 vol 337 cc674-5
3. Mr. Liddall

asked the Prime Minister whether he has now any statement to make on the failure of the Brazilian Government to meet their obligations; and what further action have His Majesty's Government taken in the interests of the British holders of £80,000,000 worth of these securities?

The Under-Secretary of State for Foreign Affairs (Mr. Butler)

A statement has been received from the Brazilian Government in which, while reaffirming in general terms their intention to pay within the limits of Brazil's capacity, they make no concrete suggestion on the subject. My hon. Friend may, however, rest assured that His Majesty's Government will continue to give their fullest support to the Council of Foreign Bondholders in their efforts to secure an acceptable proposal from the Brazilian Government.

5. Mr. Liddall

asked the Prime Minister whether he will ascertain whether the Council of Foreign Bondholders will request the Brazilian Ambassador in London to call a meeting for the purpose of arriving at an agreed settlement of the default on Brazilian obligations held by British subjects?

Mr. Butler

The Council of Foreign Bondholdres are always prepared to consider any proposal made to them by a duly accredited representative of a foreign Government. In the case of the Brazilian default the council published a statement as recently as 14th June, in which they stated that, despite their utmost endeavours, they had hitherto been unable to persuade the Brazilian Government to make any concrete proposals. In these circumstances the Council of Foreign Bondholders do not consider that my hon. Friend's suggestion would be likely to achieve any useful purpose. His Majesty's Government see no reason to differ from this view.

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