Current Intelligence Weekly Summary
CENTRAL INTELLIGENCE AGENCY
OFFICE OF CURRENT INTELLIGENCE
NOT RELEASABLE TO FOREIGN NATIONALS CONTINUED CONTROL WPBOWD FOR release:-
CURRENT INTELLIGENCE WEEKLY SUMMARY 13 June2
Public confidence in tho Goulart regime, which rose steadily during Che early months of this year, has again fallen off. Goulart's precarious health is one factor, as are the stopped-up campaigning for the Octoberand congressional elections and the cabinet chnnges they will soon precipitate. Certain baste foods are in short supply, the foroign exchange rate has fallen, and there hasew outbreak of rural violence in northeastern Brazil.
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CURRENT INTELLIGENCE WEEKLY SL'HKAEY
confidence In toe Goulart regime, which rose steadily during tho early months of this year, has "gain fallen off. One Important factor Is tbe expectationew cabinet. Congressional and gubernatorial elections are scheduledctober, and ministorn who run must resign their cabinet post*uly. Prise Minister Tancredo Neves, who le among tbose doing so, baa tended to support President Goulart rather than compete with him. but Neves' successor may seek to utilize more fully the powers his office was given by tho constitutional amendment ofhrough which Brazilarliamentary form of government.
natorlal race, former President Janlo Quadroa has improvnd his standing and now may be running abreast of ox-Governor Adhomar de Barrosess widely known protege of tbe incumbent governor. In the keystate of Pernambuco. pro-Communist Miguel Arraes appears to be the earlyas his opposition trios to agreettractive Goulart'a brothor-ln-law
Leone1 Brl/ola, governor of Rio Grande do Sul, has lost popularity in his home state, but onay ho opened afor deputy from the state ofibe city of Mlo dea speech violently attacking the United States, Northnd the Alliance for Progress.
Both Arraes and Orlzola may face legal Impediments to their candidacies,tutlonalbarrinc from theand congressional races persons closely related to an Incumbent stale or federal chief executive. Arraes Is tbe brotber-ln-law of Governor Sanpalo of Pernambuco, although Arraes' wife now is dead, and Brlzola's wife Is President Goulart's sleter.
Tbere also are Indications of Instability in the economy. Therehortage of primeandmost major cities except In tho throe southernmost states, and this shortage Is accentuated by hoarding. In the north and northeast, there have been floods in some areas, while drought prevails elsewhere. The foreign exchange rate has fallen aboutercent since, early May.
Spreading rural unrest was indicated by the killing of eight peoplelash between rural workers and police in late May Inreviously oeace-ful northeastern state.