HC Deb 28 June 1938 vol 337 c1705
48. Sir Joseph Leech

asked the Chancellor of the Exchequer whether, in order to induce the Brazilian authorities to honour their obligations to British subjects, he will discontinue the protests and consultations with the Council of Foreign Bondholders which have proved themselves to be sterile, and put into operation prohibition of entry of imports from Brazil, as being the only method which will convince Brazil that £80,000,000 worth of British savings entrusted to Brazil cannot be annihilated with impunity?

Sir J. Simon

No, Sir. I do not consider that the prohibition of imports from Brazil would be likely to succeed in achieving the object which my hon. Friend has in mind.

Mr. Jenkins

Did not people who invested this money do so at their own risk, and if the suggestion made in the question were put into operation would it not lead to international complications and even war?

Sir J. Simon

I do not know whether the consequences would be as serious as those suggested at the end of the supplementary question, but, as I have said, I do not think the method proposed is a good one. As to the investments, we shall be glad to do what we can to protect them, but not by this method.

Mr. R. Gibson

Does not the right hon. Gentleman agree that the payment by Brazil of their debts would be rather helped by increasing the imports to this country from Brazil?

Sir J. Simon

The hon. and learned Gentleman has correctly penetrated one of the reasons behind the original answer.