HC Deb 21 November 1938 vol 341 cc1312-3
5. Sir Nicholas Grattan-Doyle

asked the Prime Minister whether, in view of the failure of the London boards of the Anglo-Argentine railway companies to earn more than 2¼ per cent. on £277,000,000 of railway capital, of which £144,000,000 has not been allowed to earn a dividend for some years past, he will propose to the Argentine Government that they should buy the Anglo-Argentine railways at a price of their cost to British investors in return for Argentine Government sterling bonds or, alternatively, that the Argentine Government should relax the restrictions imposed upon the companies so as to allow them to earn a dividend of not less than 5 per cent. on the £144,000,000 of capital?

Mr. Butler

According to a recent statement from an authoritative Argentine source, the British companies concerned have submitted to the Argentine Government various suggestions for reform tending to remedy the situation, and the authorities are examining these with all good will to find an equitable solution within reasonable limits. His Majesty's Government, who are naturally interested in the welfare of the railway companies concerned, welcome this statement. The Argentine Government are already aware of the hope of His Majesty's Government that a settlement satisfactory to both parties will be reached as soon as possible, and my hon. Friend may rest assured that His Majesty's Government will continue to watch the situation in full consciousness of the importance of the British interests involved.

Mr. Shinwell

Can we have an assurance that we shall not have a quarrel with the Argentine Government, such as we had in the case of Mexico?

Mr. Butler

I do not think the cases are similar.