HC Deb 23 November 1938 vol 341 cc1733-4
12. Mr. Liddall

asked the Prime Minister whether, in view of the depreciation of investments in Brazilian public loans and railway capital raised in London, amounting to approximately £100,000,000, and the disinclination of British commerce to embark upon further transaction with Brazil involving credit, he will reduce British ambassadorial representations in Brazil to the status of a consulate pending an agreed debt arrangement between the Brazilian authorities and the British Government acting on behalf of British subjects who have entrusted their savings to Brazil?

Mr. Butler

According to a recent published statement by the President of Brazil, the Brazilian Government continues to be ready to examine with the interested parties any practical scheme which may benefit the creditors of Brazil and respect the interests of the national economy of that country. As I informed my hon. Friend on 20th June last, His Majesty's Government will continue to give their fullest support to the Council of Foreign Bondholders in their efforts to secure acceptable proposals from the Brazilian Government. My Noble Friend does not, however, consider that the interests of the British holders of Brazilian loans and investments would be served by a reduction in the status of the representation of this country in Brazil.

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