CIWR: TREND TO THE LEFT IN BRAZIL

Created: 12/7/1962

OCR scan of the original document, errors are possible

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Intelligence Weekly Review

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CURRENT INTELLIGENCE WEEKLY REVIEW

TREND TO THE IN BRAZIL

administration of President Goulart appears to be giving increasing Influence to tbe extreme left. Antl-Coulart sentiment la riu-lng. particularly in tbe key Industrial atate of Sao Paulo andajor conservative party. Moderates andhowever, are Making no significant moves towardopposition.

at armed forces offloers are aoderates orthe recentof extreme leftist General Oromar Osorlo as commander of divisional artillery in Rio de Janeiro continues theadministration policy of choosing tbe sore leftistfor coaaundeneral Osvlno Aires. Goulart's appointee to cosmand the First Amy. reportedly stated Id late October that he vould besuitable minister of warother candidates would be unwilling to maketo the Communists around Goulart.

Communists are also making galas Id tbe traditionally government-dominated labor so*omat. In late Wovember. Robertorominent old-line Communist long active In tbe International Communist labor movement, was elected presldont of the Industrial Workers Pension Institute. The institute has substantial funds at Its disposal, and Morona can be expected to use these for Communist purposes.

Brazilian officialswith economicare showing increased hostility toward the United States and Increasingly open willingness to get along with Communists. Celso Furtado. cabinet minister for economic development and beadey

economic development agency, recently told US officialsercent" of his agency's personnel. including known Cobi-munlsts. oppose cooperation with tbe United States. He said heo intention of removlDg this element. Furtado and some of bis subordinates have been sharply critical of tbe Alliance for Progress during tbe past month.

Tbeecember providesillion credit for the constructionatt thermal electric plant In Rio Grande do Sul. S-owned power company In tbat state vas expropriated9 by Governor Leone1ltranational1st brother-in-law . Tbs Polish credit la tbe first sizable bloc credit to Bramll. The possibility of Soviet technical and military aid la reportedly under.

Brazilinancial crisis. Gold and foreignreserves are likely to be exhausted by tbe end of tbe year, and commercial arrears are substantial. Goulart, bow-ever, appears to be devoting little attention to tbls problem. Be Is preoccupied wltbanuary plebiscite, expected to restore full powers to tbe presidency.

Moderate and conservative parliamentary factions voted onovember to confirm Prime Minister Hermes Lima. They were probably motivated by the conclusionabinet crisis this Close to tbeby adding to exasperation wltb the parliamentary system, would increase significantly tbe expected support for Oou-lart's ansutMr.ttonoffull^prosi--deotlal Powa, laBaBaBaBaBaaaaBl

Dec 62

REVIEW

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