HC Deb 10 February 1932 vol 261 cc864-5W

asked the Secretary of State for Foreign Affairs if he will request His Majesty's Minister at Rio de Janeiro to ascertain whether it is the intention of the Brazilian Government, when issuing certificates under the various categories of defaulted Brazilian debt, to make provision for suitable hypothecation of revenue to meet liabilities under the fourth default in obligations of the Brazilian Government, provincial and municipal authorities?


It is understood that the arrangements proposed by the Brazilian Government in connection with their decision to issue Funding Bonds in respect of interest on certain of their external loans have been stated in detail to the-bondholders concerned, and my right hon. Friend does not think that any useful purpose would be served by communicating with the Brazilian Government on the matter. He understands that this funding scheme does not apply to the obligations of the provincial and municipal authorities in Brazil, which are a separate matter.