HC Deb 04 December 1934 vol 295 c1411W
Mr. BURNETT

asked the Chancellor of the Exchequer whether, in view of the fact that the Council of Foreign Bondholders has failed to arrange that the Chilean Government should meet its contractual obligations to British investors, he will, with a view to protecting their savings and the Income Tax and Death Duty revenues arising there-from, allow a Treasury official to open negotiations with the Chilean Government in collaboration with the Association of Trust Companies?

Mr. COOPER

As stated in the reply given to the hon. Member for North Newcastle-on-Tyne (Sir N. Grattan-Doyle) on 15th November, the practice of His Majesty's Government in regard to defaults on foreign loans generally is not to intervene directly, but to watch the interests of British holders, and in particular to make every effort to secure that settlements are reached by negotiation with the recognised representatives of the bondholders. This practice is being followed in the case of Chile, and I do not consider that it would be desirable to depart from it.

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