832.5034/37
The Chargé in Brazil (Scotten) to the Secretary of State
[Received July 15.]
Sir: I have the honor to refer to the Embassy’s despatch No. 1405 of June 10, 1937, concerning an aide-mémoire which was left with the Foreign Office in regard to pending legislation concerning ownership of Brazilian industries vital to the national defense. Under date of July 5th, the Foreign Office advised the Embassy in the form of a memorandum (copy and translation enclosed)68 that the Ministry [Page 375] of Foreign Affairs will take whatever steps may be necessary to safeguard the rights of American citizens in existing Brazilian companies.
On July 6th the Chief of the Political Division of the Foreign Office, who drafted the enclosed memorandum, informed a member of the Embassy staff that subsequent to the receipt of the Embassy’s aide-mémoire he had made several visits to the Chamber of Deputies in order thoroughly to familiarize himself with the pending legislation; that he had had conversations with many influential deputies concerning this matter; that it was now his definite impression that the legislation in question was considered entirely too drastic by a large majority of the members of the Chamber of Deputies and that it would unquestionably be killed. As regards the possibility of the presentation of similar legislation in the future, the Chief of the Political Division stated that, although this is entirely possible, he felt that existing rights and interests would, at all times, be taken into consideration and protected.
Respectfully yours,
[No further representations regarding the proposed legislation were made by the United States.]
- Not printed.↩