832.506/33
The Chargé in Brazil (Scotten) to the Secretary of State
[Received July 11.]
Sir: I have the honor to refer to the Embassy’s telegram No. 42 of May 8, 10 a.m., and to previous correspondence regarding the project of law providing for the nationalization of insurance companies and the establishment of a federal re-insurance institution in Brazil.
Although, as reported in the Embassy’s telegram under reference, the project of law dealing with this subject has been temporarily shelved, there is, of course, no assurance that it will not be actively pushed at some future date. The bill is at present in the Finance Committee of the Chamber of Deputies and the influence of the Minister of Finance57 upon the activities of that Committee is, of course, considerable. It occurs to me that the presence of the Minister of Finance in Washington at this time presents an opportune moment for the Department to mention this matter to him, either directly or through Ambassador Aranha, in order to elicit, if possible, assurances from the Minister that, when he returns to Brazil, he will take active steps to kill this thoroughly obnoxious piece of legislation. It is my impression that Ambassador Aranha himself is firmly opposed to the passage of any legislation in Brazil which might serve as a deterrent to the entry of foreign capital here, and that if the question were put [Page 367] up to him in this light it is quite possible that his influence, added to that of the Department itself, might secure the support of the Minister of Finance to our point of view.
Respectfully yours,
- Arthur de Souza Costa.↩