Getúlio Vargas Constitution that was supposed to be transitional pending new elections, Vargas assumed legislative as well as executive powers. Also, under the 1937 Constitution Vargas should have remained President for only six more years (until November 1943), but instead stayed in office until 1945. For all intents and purposes, Vargas ruled for eight years under what amounted to martial law. Vargas employed ambiguous policies towards Axis and Allied orbits. At first, Brazil seemed to be entering the Axis orbit — even before the 1937 declaration of the Estado Novo. Between 1933 and 1938, Germany became the main market for Brazilian cotton,
Luis Vargas Torres on July 9 ended the "Veintemillista" dictatorship, leading to Vargas Torres' promotion to colonel on August 6. Vargas Torres served as deputy at the Convention convened by President José Maria Placido Caamano, which met in Quito from 11 October to April 26, 1884. There he vigorously defended his liberal principles but failed to prevail. On September 5 he again embarked for Panama in support of Alfaro where he funded a warship that was placed under the command of Commander Andrés Marín. The revolutionary force was defeated at the naval Battle of Jaramijó (5–6 December) and Vargas Torres took refuge in