Foreign Relations of the United States Diplomatic Papers, 1937, The American Republics, Volume V

832.506/44

The Ambassador in Brazil (Caffery) to the Secretary of State

No. 215

Rio de Janeiro, December 23, 1937.
[Received December 30.]

Sir: I have the honor to refer to my despatch No. 203 of December 17,⁶⁴ enclosing copy and translation of a memorandum prepared by the Legal Adviser of the Ministry of Labor, which expresses the opinion that Article 145 of the new Constitution is fully operative at the present time and that foreign insurance companies at present operating in Brazil should immediately go into liquidation.

I am now informed by Mr. Cunningham, the local representative of the American insurance companies operating here, that a representative acting on behalf of all the foreign insurance companies, called upon the Minister of Labor on December 20th and inquired regarding the significance of the memorandum under reference. The Minister of Labor replied that he deplored the publication of this opinion, which neither has the force of law nor reflects the views of the Minister himself. The Minister explained that the memorandum merely reflected the personal opinion of the writer and was not an expression of the views of the Brazilian Government, and that for the time being, at least, the latter was not contemplating any action injurious to the foreign insurance companies.⁶⁵

Respectfully yours,

For the Ambassador:

R. M. Scotten

Counselor of Embassy

64. Not printed.
65. No legislative action was taken until 1939 when a decree-law required all domestic insurance companies, Brazilian and foreign, to reinsure only with the Reinsurance Institute.