832.5151/754: Telegram
The Chargé in Brazil (Frost) to the Secretary of State
[Received November 19—5:55 p.m.]
299. Department’s 181 November 5, 10 p.m. The text of the authorization or Enabling Act for American frozen credits, which was definitely and favorably reported by the Finance Committee of the Chamber of Deputies yesterday, is as follows:
“The legislative power decrees:
Article 1. The executive power is hereby authorized to negotiate with the Government of the United States of America the settlement of the North American commercial debts in arrears covered by the first clause of the letter of February 2, 1935 addressed by the Brazilian Ambassador at Washington to the Secretary of State of the United States of America and which accompanies the commercial treaty signed on the same date between Brazil and that nation.
Article 2. The agreement shall not exceed the amount of 30,000,000 American dollars and its conditions shall not be inferior to those of the financial agreement of the same nature signed on March 27, 1935 between the Brazilian Government and the United Kingdom of Great Britain and Northern Ireland.
Article 3. All provisions to the contrary are hereby revoked.”
In view of the fact that two discussions of this bill on the floor of the Chamber are necessary before submitting it to vote, it is believed that should the Department so desire it would be possible discreetly to obtain the inclusion of any amendment or change which the Department might wish to suggest, through friends on the Finance Committee. This thought is submitted without any idea of suggesting that the legislation is not adequate, but simply because if any action in this connection should be desired by the Department it must be taken immediately, inasmuch as the bill is likely to receive final vote in the Chamber during the course of the week.