832.506/41
The Ambassador in Brazil (Caffery) to the Secretary of State
[Received November 2.]
Sir: I have the honor to refer to my despatch No. 102 of October 20, 1937, and to previous correspondence regarding the bill providing [Page 370] for the nationalization of insurance companies and the establishment of the Federal Reinsurance Institute of Brazil.
The bill in question was brought upon the floor of the Chamber of Deputies on October 23rd for second reading. Upon this occasion there were presented numerous amendments to the bill, apparently inspired by the lobby of the foreign insurance companies here. The result was that the bill was referred back to the Committee of Justice, and must again be considered, not only by this committee but by the Committees of Social Legislation and Finance as well, before it is brought to the floor of the Chamber for the third reading. The insurance companies, while by no means optimistic that they can prevent the eventual passage of the bill, are at least hopeful that through tactics such as those reported above they will be able to delay its passage for some time.
Respectfully yours,
Counselor of Embassy