CIWR: BRAZIL

Created: 8/24/1962

OCR scan of the original document, errors are possible

TOP SECRET

CURRENT INTELLIGENCE WEEKLY REVIEW

A commitment by thecongress to setIn September on oeami rea sought by the leftist adminie-tratlon of president Goulart has eased the country's political crisis, at least temporarily. Congressional loaders have agreed that congress millin Brasilia fromoeptember, despite the pressures of campaigning for congressional electionsctober. At thatirm date prior to mld-Aprll ISO will be setlebiscite on

the year-old parliamentary Inimited conceaslon will bo made on the administration's request for facilitating: amendment of the

constitution. The parliamentary

system appears widely unpopular lo Brazil, lebiscite Is

likely to resulteturn to

a strong presidency.

Tbe Goulart administration is apparently optimistic that congressional leaders will keep their commitment to take action in September. An administration official has stated that air force planes would be used to assemble the congressmen and that "since everyone agrees,ew votes are missing nobody will complain if those votes show up in the 'yes' column anyway."

Congressional action to authorize the plebiscite wouldartial victory for President Goulart, It "would be likely to Increase his ability to help candidates from bis leftist Labor party in the October congressionalongressional failure to follow

through on its commitment, on the other band,would be likely to resultew crisis.

Political uncertainty la reflectedeterioration of ths foreign exchangeharp drop in tbe freely fluctuating tourist exchange rate in early August was followed recentlypercent drop in the official oxenange rate. Negotiations with West Germanyillion In economic aid have boon suspended becauso of Brazilian insistence that all aid shipments should bo transported in Brazilian ships, although Brazil probably does not have sufficient tonnage to handle them. One major petroleum supplier has reportedly decided to auspend shipments to Brazil because payments are overdue.

Meanwhile, leftist elements are apparentlyountry-wide political bloc to coordinate campaigning for the congressional elections. Prosldont Goulart's ultra-natlonalistaw, Leonel Brlzola, who Is the critic of the Alliance for progress in Brazil, isto be coordinator in southern Brazil from Bio do Janeiro to the Uruguayan border. Former Foreign Minister San Thiagoormer fascist who has in recent year', been the chief Ideological adviser of Goulart's leftist Labor party. Is to bead tbe campaign in tbe central states, while pro-Communist Miguel Arraes is to be In charge In th"mmmmmmmmjmmj

Original document.

Comment about this article or add new information about this topic:

CAPTCHA