832.6363/1–1546: Telegram

The Chargé in Brazil (Daniels) to the Secretary of State

confidential

102. Today the Dutch Counselor of Legation called upon the Commercial Attaché to discuss the general petroleum situation in Brazil particularly as regards the projected creation of a refining industry. He was provided with general information and in reply to a direct question was informed that this Mission has not objected to the creation of the refining industry excepting on the basis of the Final Act of the [Page 540]Inter-American Conference of Chapultepec, chapter L, sec. 4,77 which provides for the free movement and investment of national and foreign capital. The Dutch Counselor somewhat reluctantly displayed a copy of a note written to the Brazilian Ministry of Foreign Affairs under date of January 8, 1946, in which it was stated that it was hoped that the Brazilian Government would postpone any further steps as regards the creation of a local refining industry until such time as existing legislation has been so altered as to permit the participation of foreign capital.

This note would appear to be closely comparable to that reportedly submitted by the British Embassy and it is assumed that the identification of the Dutch in opposition to the Brazilian refining industry can be traced to the Dutch capital participation in the Dutch Shell organization which in turn is locally represented by the Shell Mex Company.

Daniels
  1. Pan American Union, Final Act of the Inter-American Conference on Problems of War and Peace, Mexico City, February-March, 1945 (Washington, 1945), p. 91.