832.5034/36
The Chargé in Brazil (Scotten) to the
Secretary of State
No. 1405
Rio de
Janeiro, June 10, 1937.
[Received June
17.]
Sir: I have the honor to refer to the Embassy’s
despatch No. 1383 of May 19, 1937, and to the Department’s telegram No.
33 of June 7,
[Page 374]
5 p.m., both in
regard to certain legislation pending before the Brazilian Congress,
intended to prevent persons other than native-born Brazilians from
holding stock in national industries vital to the national defense.
There is transmitted herewith a copy of the aide-mémoire which I am leaving with the Acting Minister for
Foreign Affairs this afternoon, in compliance with the instructions
contained in the Department’s telegram No. 33.
Respectfully yours,
[Enclosure]
The American Embassy
to the Brazilian Ministry for Foreign
Affairs
Aide-Mémoire
There has come to the attention of the Government of the United
States of America the fact that a bill (No. 424 of 1936) which
proposes to regulate the establishment and functioning of corporate
organizations (sociedades anonymas) in Brazil
is now under consideration by the Chamber of Deputies. It has
further been noted that among the amendments to the bill which have
been presented are one providing that shares of stock in
corporations intended for the carrying out of operations of interest
to the national defense of Brazil, such as navigation, naval
construction, siderurgy, electro-chemistry, mining and the
manufacture of war material and explosives, shall be held solely and
exclusively by native-born Brazilians, and another providing that
the peremptory provisions of the bill will be applicable to all
corporations now in operation.
The Government of the United States directs the Embassy to express
the hope that, in any resultant or similar legislation, the
interests of American citizens in existing corporations will receive
adequate protection.
Rio de Janeiro,
June 10,
1937.
