HC Deb 18 November 1931 vol 259 cc849-50W

asked the Secretary of State for Foreign Affairs whether he will, for the protection of British savings invested in defaulted securities of public authorities in Brazil, request the British issuing houses responsible to submit to him for approval the terms they may make on behalf of the Brazilian Government for the coming issue of Brazilian funding bonds, so that he may be assured that satisfactory compensation will be included in relation to the fourth default by Brazil upon her sinking fund obligations to British investors and that sinking fund obligations on all bonds under the three defaults are to be maintained in operation or, alternatively, compensa- tion made for any suspension of sinking fund rights?


Any decision of the Brazilian Government to issue funding bonds in respect of interest and to suspend the sinking funds of certain of its external loans is primarily a matter between that Government and the bondholders concerned. As at present advised, my right hon. Friend does not consider that His Majesty's Government can intervene in the matter.

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