SPANISH INDEMNITY BONDS. (Hansard, 17 July 1840)

§ The Earl of Aberdeen

, in presenting to the House a petition from the holders of Spanish Indemnity bonds, and asking the attention of the noble Viscount for a few moments to the statement of the petitioners, reminded the House that he had presented a similar petition just two years ago from the same parties, and couched in the same terms. On that occasion, the noble Viscount not only admitted the justice and strength, and truth of the representations made by the petitioners, but he had gone further, and declared that the claim of the petitioners was of such a nature, that it ought to be liquidated preferably to any other claims on the Spanish Government, and that her Majesty's Government would lose no time in urging the settlement of the demand. Nothing had, however, since been done for the relief of those parties; and therefore they had again come forward with a petition, in the hope of obtaining redress. A convention was entered into in 1823, by the ambassador from this country to the Court of Madrid, for the purpose of obtaining redress on account of certain outrages, and the capture of certain property by the Spanish Government previous to that year. A mixed commission was in consequence appointed to examine the matter; but nothing was done up to the year 1828, when the parties complaining, by his advice, agreed to a compromise. They were willing to receive 900.000l., instead of upwards of 2,000,000l., the amount of claims registered under this commission. In consequence 600,000l. was paid in money, and bonds were given for the remaining 300,000l, which bonds were secured by treaty entered into by the Spanish Government for that purpose, and sanctioned by, and textually embodied in an Act of Parliament, thus giving a security for these bonds, which no other bonds could possess. In 1836, the interest on these bonds ceased to be paid, and those by whom they were held suffered much inconvenience in consequence. The sum was so small, and the sanction for its payment so solemn, that it was impossible to suppose, that if the Government had exerted itself in pressing these claims properly, they would not have succeeded in effecting that object. Last winter an at- 776 tempt was made on the part of the Government to effect an arrangement for the payment of this arrear, and acceptances were granted on the part of the Spanish agent for that purpose; but when the bills arrived at maturity, they were protested. Six dividends were now owing. The claims of the Spanish Legion bad been pressed with an extraordinary degree of activity and perseverance in that House, and he saw by a letter from Sir De Lacy Evans, that they were nearly settled, and that a sum of 50,000l. had been actually paid. He did not deny the claims of the Legion, or the right which they had to call upon Government to assist them in obtaining justice; but their claims, assuredly, were not greater than those of the petitioners. They had taken these bonds under the sanction of a solemn treaty, which the Government was as much bound by as by any treaty that ever was made. He thought that there was something like a breach of engagement on the part of the noble Viscount (who had said that these claims ought to be liquidated preferably to all other claims) in not pressing the subject more strenuously on the Spanish Government. One circumstance ought not to be omitted in noticing this case. It was notorious that throughout all Europe Spanish bonds, and other Spanish securities, were at one time worth nothing; yet, owing to the sanction of the British Government, these indemnity bonds were received, when other Spanish securities were good for nothing, as valuable. He was much interested in this subject, because he was the person who had induced the parties to enter into a compromise in lieu of their original demand, and they naturally looked to him, by whose advice they took that step, to direct them with reference to the proceedings which they should adopt. He had thought it right to bring it forward again, and he trusted that it would be speedily settled. He wished that the noble Viscount would in this instance, exhibit a little of that energy which he had shown in endeavouring to effect a settlement of the claims of the Spanish Legion.

§ Viscount Melbourne

observed that the facts, as stated by his noble Friend, were perfectly indisputable; and he must fairly admit, that the claims of the petitioners were entitled to a priority of consideration with the Spanish Government. But when he made that admission, he must at the 777 same time observe that there were other circumstances than those of neglect or want of energy on the part of her Majesty's Government, which afforded in his estimation a sufficiently reasonable ground for the cessation of these payments. The claims of the petitioners had been strongly urged on the Spanish minister in this country, and also on the Spanish Government at Madrid, in the spring of this year, to which it was replied that Spain was really so pressed by the exigencies of the civil war, and that it was of such paramount necessity—of such supreme, absolute, and primary importance to put an end to that civil war, that for the present it was quite impossible to discharge any of the pecuniary claims which foreign nations might have upon her. It was further urged, that it would be more for the advantage of the creditors of Spain themselves that all the resources of the country should be applied to the great object of subduing the internal enemy, and of puting an end to the civil strife by which all the energies of the country had hitherto been paralyzed. It was impossible, he thought, not to feel the force of that argument. He must say, that he did not think his noble Friend had exhibited either now or on former occasions a disposition to make sufficient allowance for a country and a Government placed in such a situation as that of Spain. It was easy for his noble Friend to say that the sum claimed was small, and that Spain was a large country; but here in England we knew little or nothing of the difficulty that existed in procuring even the smallest sums in a country exhausted by civil war. Spain had shown great energy and a strong disposition to meet its engagements, and was only prevented doing so by that necessity to which all persons and all nations were compelled to yield. His noble Friend said he was quite sure the justice of these claims would be admitted, and that they ought to be satisfied, and that the Government was not justified in paying more attention to the claims of the Legion, though the claims of the Legion had something in them of a temporary nature, which perhaps these claims had not. He did not say that this was a just argument, though he could conceive some reason why that should be the case, but at the same time it was impossible, amidst the difficult affairs of a distracted and convulsed nation, to preserve that exact 778 regularity of transaction which might be maintained in time of peace. There was now reason to hope that the civil war had terminated; but it was impossible that all the effects of it should cease at once, and that the resources of the country should become available to other purposes without some further delay. However, a better state of things and a more regular course of procedure might now be expected, and it would be amongst the first duties of her Majesty's Government to make such representations upon this subject as should appear to be necessary; and he had no doubt that the Spanish Government would also see the necessity of settling claims which were so manifestly just, and which they were bound by solemn treaty to liquidate. He felt perfectly satisfied that the claims of these petitioners would now be attended to with as little delay as the affairs of the country would permit.