HC Deb 28 February 1940 vol 357 cc2038-9
7. Mr. Liddall

asked the Prime Minister whether the Chilean Government have completed their sinking fund purchases due up to 31st December, 1939, in accordance with the unilateral law imposed upon foreign holders of defaulted Chilean obligations; and, if not, will he remind the Chilean authorities that, as the sinking fund proposals are their own proposals, it is expected that they will be punctually carried out?

Mr. Butler

The existing arrangements with regard to the Chilean foreign debt were made unilaterally by the Chilean Government, and were not recommended for acceptance by the Council of Foreign Bondholders. As at present advised my Noble Friend is not prepared to request the Chilean Government to carry out a scheme which the representatives of the British interests concerned have not recommended. I am circulating a statement on the present situation in the OFFICIAL REPORT.

Following is the statement:

According to a statement issued by the Chilean authorities in December, 1939, the revenue received during 1939 for the service of the external debt amounted to United States $9,456,203. Out of the 50 per cent. of this amount to be applied to sinking fund purchases it was stated that bonds of the nominal value of £120,560, United States $5,882,000 and Swiss francs 228,000 were bought and withdrawn from circulation. I understand that the balance not utilised was carried forward to increase the funds applicable to amortisation this year.