HC Deb 14 March 1932 vol 263 cc36-7W
Mr. REMER

asked the Secretary of State for Foreign Affairs if he will ascertain and state whether the composition on the defaulted interest due by the Brazilian Government provides for the sinking funds on the defaulted bonds; arid, if no provision has been made by a deposit in milreis, will he represent to the Brazilian Government that the value of the sinking fund rights under which British savings were borrowed by Brazil should form part of any composition with her British creditors?

Sir J. SIMON

I would refer my hon. Friend to the terms of the agreement relating to the Third Funding Loan, which appeared in the Press this morning, by which the Brazilian Government undertake to deposit in local banks the sum necessary to cover default on its obligations. These deposits will be made in respect of (a) interest, and (b) sinking fund. The second part of the question does not therefore arise.