asked the Secretary of State for Foreign Affairs if he will instruct His Majesty's Minister in Rio de Janeiro to ascertain and report the cause for the continued delay in terminating the default by the State of Rio de Janeiro upon its obligations to British investors; and whether he is aware that the delay is causing hardship to those British subjects who entrusted their savings to the Brazilian borrowers?

As I stated in reply to my hon. Friend the Member for Newcastle-upon-Tyne (Sir N. Grattan-Doyle) on the 5th April negotiations for a settlement of these obligations have been suspended while a general settlement is being considered. In these circumstances I do not consider that any useful purpose will be served by calling for a report.

Can the hon. Gentleman give any indication when a general settlement is likely to be completed?

No, I am afraid that I cannot; the general scheme is under examination now by a Brazilian commission.