BRAZIL'S DEBTS.

Auckland Star, Volume LXVI, Issue 58, 9 March 1935, Page 9

BRAZIL'S DEBTS.

Agreement on Payments to

Britain

LIQUIDATION SCHEME

(British Official Wireless.)

(Received 10 a.m.)

RUGBY, March 8.

The President of the Board of Trade, Mr. Walter Runciman, informed the House of Commons that negotiations with the visiting Brazilian financial mission in regard to the liquidation of Brazilian frozen trade debts to the United Kingdom had resulted in the formulation of certain proposals which the Brazilian Minister of Finance had undertaken to place before his Government. It was hoped the agreement would be signed in the course of the next four weeks.

As regards current trade, the Brazilian Government had provided by law that the exchange required to pay for goods imported after February 11, 1935, could be bought freely on the market. Accordingly no further arrears due to exchange restrictions in respect of imports should arise. The " Brazilian Government would maintain payments under the Commercial Arrears Agreement of 1933, and the payment of public debt service in accordance witli the plan of February, 1934, by retaining a percentage of foreign exchange resulting from all exports. The British Government made it clear that it had every desire to see trade between Britain and Brazil develop on a basis mutually beneficial to the exchange of goods and services.