832.506/36
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received September 21.]
Sir: I have the honor to refer to the Embassy’s despatch No. 1422 of June 24, 1937, regarding the bill providing for the nationalization of insurance companies and the establishment of a Federal Reinsurance Institution in Brazil.
Although, as reported in the above mentioned despatch, the bill has been shelved for several months, it is again being actively discussed in the Finance Committee of the Chamber of Deputies, and there is at least a possibility of its passage during the present session of the Brazilian Congress, which is scheduled to terminate on November 3rd. However, Mr. William Cunningham, the representative of the two American insurance companies which operate in Brazil, informed the Embassy today that he has just had a long conversation with Senhor Valentim Bouças58 regarding this subject, and received the assurance of Senhor Bouças that he would urge on the Minister of Finance the desirability of the latter using his influence to delay this legislation still further. Mr. Cunningham seemed confident that the Minister of Finance would come to the assistance of the foreign insurance companies, and for this reason he stated that he did not desire the Embassy to make any representations for the time being.
Respectfully yours,
Counselor of Embassy
- Member of the Brazilian Federal Foreign Trade Council and Special Technical Adviser to the Minister of Finance.↩