832.6363/12–2046: Telegram

The Acting Secretary of State to the Ambassador in Brazil (Pawley)

secret

1566. Embtel 2029, Dec. 20. Official sponsorship by this Govt either of draft legislation Braz petroleum law or American Co minimum position could, Dept feels, subject US Govt to charges domination or interference Braz internal affairs.

Dept inclines to position suggesting Braz Govt employ as advisor to drafting committee person or firm experienced in oil legislation such as Max Thornburg author Guatemalan law, Hoover Curtice and Ruby whose Curtice wrote Peruvian law, Schuster and Feuille authors Dominican Republic law or possibly DeGolyer and Mac-Naughton whose Garner now technical advisor to committee. In addition Harmon97 could be available consultation.

Advisor could serve committee as formulator of law and liaison for correlation views private Cos and other interests. Dept would prefer no direct association with legislation in formative stage, therefore favors advisor as channel informal views which channel Emb should feel free to use at all times.

Dept desirous maintaining interest all stages law and may wish to comment officially when project ready legislative action but meanwhile feels its official views should be made known to Braz Govt only at instigation latter and then only with reference specific proposals.

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In view above Dept feels it should not call together Cos for purpose coordinating Co views on legislation nor act as transmitter therefor. Co views coordinated or individual should go through designated Braz committee. Dept though not associating itself with views nevertheless interested substance. If assistance eventually necessary Dept believes this most appropriate and effective at or just prior to time project presented legislature.

Acheson
  1. Petroleum Attaché.