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

No. 1402

Subject: New Consumption Tax Law in Brazil.

Sir: With reference to previous correspondence on the above-mentioned subject, I have the honor to submit the following information on the progress that is being made in eliminating the provisions of the new consumption tax law that are at variance with the Reciprocal Trade Agreement between the United States and Brazil.

Mr. Hortencio de Alcantara Filho, Director of Internal Revenue, stated that he has just submitted to the Minister of Finance a proposal under which the provisions of the trade agreement will be respected in their entirety in the enforcement of the new consumption tax law. The proposal envisages the issuance of a decree-law to that [Page 721] effect. If the Minister of Finance concurs, a few weeks probably will elapse before the decree-law is promulgated.

Respectfully yours,

For the Ambassador:
DuWayne G. Clark

Commercial Attaché