832.506/37: Telegram
The Ambassador in Brazil ( Caffery ) to the Secretary of State
[Received 6:30 p.m.]
131. My despatch No. 33 of September 14. My despatch No. 84 of Octobed 1559 reported the local representative of the American Foreign Insurance Association optimistic as to the final outcome of the pending insurance legislation due to presentation by a Deputy of a satisfactory substitute bill. However, Cunningham now informs me the passage of the objectionable legislation appears imminent due to the rejection of the substitute bill and the approval of the original bill by the Finance Committee of the Chamber of Deputies. This committee at the same time approved a motion requesting information [Page 369] from the Minister of Finance as to the effect of this legislation upon the finances and exchange position of Brazil but the wording of the motion is such that the bill may be brought to the floor of the Chamber of Deputies before the receipt of the information solicited.
Minister of Finance gave me to understand a few days ago he is opposed to the bill but I understand it is being pushed by the Minister of Labor60 with the approval of the President and it is uncertain whether the Minister of Finance will be able to effect a change favorable to the insurance companies.
I have called the attention of the Minister for Foreign Affairs61 to the Embassy’s aide-mémoire of May 6 reported in the Embassy’s telegram No. 42, May 8, 10 a.m.