BRAZIL'S DEFAULT IN FOREIGN PAYMENTS

Hawke's Bay Herald-Tribune, Volume 81, Issue 47, 18 November 1937, Page 5

BRAZIL'S DEFAULT IN FOREIGN PAYMENTS

(British OSoial Wireless.)

British Bondholders Make Emphatic Protest REPLY IS AWAITED

(Received 18> 8.45 a.m.) RUGBY, Nov, 16. It is stated in London that the Cduftcil of Foreign. Bondholders, WhO foi some time have been negotiating with th« Brazilian Government, WiShes it to be known that the President 's announcemeut that the payment of intorest and amortisation on the Brazil et* ternal debt would be temporarily. Sufe-' pending pending further examination had in no way been indicated by the , course of these negotiations. In this unexpected flituation tho couiicil at OttCe made emphatic ' repwh sentations to the Brazilian Government. In the view of the council there ii not sufilcient economic jiistification for the suspension of tho existing ' pay- ' ments, and such. tmilateral suspension at a timo when fiegotiations" were actttally in progress for the future of thf debt service will be particularly damaging to Brazilian credit. The conncil also emphasised the extent of the sacrifices already inade by bondholders under tho existing plan. The council understands bondholders' associatiqns of the United States, France and Holland have made similat representations to the Brazilian Government, a reply to which is now bii ing awaited. — — • ■ - k