§ Mr. Walkdenasked the Secretary of State for Foreign Affairs whether he is aware that the assets of the Ceara Tramway Light and Power Company and the Para Electric Tramways and Light Company, both British-owned public utility undertakings operating in Brazil, have been confiscated by the Brazilian Government under Federal Decrees; and what steps he proposes to take to ensure that the British stock and shareholders receive fair compensation, as provided for under the terms of their concessions.
§ Mr. MayhewYes. The Para Electric Tramways and Light Company's concession was expropriated by a Federal Government Decree of 24th September, 1947, transferring its assets without compensation to the municipality of Belem. A note requesting the Brazilian Government to rescind the Decree was delivered by His Majesty's Ambassador at Rio de Janeiro on the 18th December, 1947.98W Meanwhile, the Company also instituted legal proceedings and it was learned in June, 1948, that their petition to the Federal Supreme Court of Brazil for the annulment of the Decree has been rejected. The Foreign Office is now considering the possibility of giving further official support to the Company to ensure that they receive just treatment.
The Ceara Tramway Light and Power Company was expropriated by a Decree of 6th February, 1948, which transferred their concession to the municipality of Fortaleza, though in this case the municipality was required to pay in due course an indemnity to be assessed jointly by the Ministry of Agriculture and the municipality. The Decree is not yet in force, however, as the municipality has protested to the Federal Government against this payment. The matter has now been referred to the National Council for Electric Power and the Company has therefore refrained so far from filing a petition with the Supreme Court contesting the legality of a Decree which deprives the Company of the concession without prior payment. In the note to the Brazilian Government of 18th December, 1947, which has already been mentioned, His Majesty's Ambassador at Rio de Janeiro also gave warning against unilateral confiscation of the Ceara Tramway Light and Power Company. The situation is being carefully watched, with a view to further action through diplomatic channels at the appropriate moment.