832.506/39
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received October 26.]
Sir: Referring to previous correspondence regarding the bill providing for the nationalization of insurance companies and the establishment of a Federal Reinsurance Institution in Brazil, and especially to my telegram No. 131 of October 18, 3 P.M., I have the honor to report that I discussed the matter of the impending insurance legislation informally today with the Minister for Foreign Affairs. He told me that he is opposed to the bill, which is now before the Chamber of Deputies, and that he is endeavoring to persuade President Vargas to oppose it also. He added, however, that the Minister of Labor is vehemently insisting that the bill be passed.
The Minister for Foreign Affairs remarked that, without doubt, new insurance legislation is much needed here, but he feels that the necessary aims can be accomplished without going to the extremes reached in the pending bill of the Minister of Labor.
Respectfully yours,