§ Sir F. SANDERSONasked the Secretary of State for Foreign Affairs whether he is aware that the International Committee of Bankers on Mexico which was set up to conserve the interests of holders of Mexican bonds which are in default has no longer a mandate to act for bondholders; and whether, in view of the difficulty which bondholders in this country experience in knowing what action they should take, he can make any statement for their information?
§ Mr. EDENAs regards the first part of this question, I would refer to the reply given to my hon. Friend, the Member for Tynemouth (Mr. West Russell) on 23rd March, 1932. It will be recalled that an agreement had been reached in December, 1931, between the International Committee of Bankers and the Mexican Government by which it was provided that a final settlement should be reached by the end of 1933 and that, as an earnest of their intentions, the Mexican Government would deposit the sum of 5,000,000 United States dollars gold before 1st July, 1933. As the committee announced in July last, the Mexican Government have failed to make this deposit and the Agreement of December, 1931, consequently falls to the ground. I am informed that the Committee are nevertheless continuing their endeavours to reach a settlement with the Mexican Government and, if an agreement is reached, bondholders will be requested by the Committee to indicate their approval of the terms of such an agreement in the. usual manner by depositing their bonds. If they do not choose to accept these terms, they will be free to negotiate individually with the Mexican Government.