CIWS: BRAZIL

Created: 6/15/1962

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Intelligence Weekly Summary

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CENTRAL INTELLIGENCE AGENCY

OFFlCe Of CURRENT INTEIUGENCE

O FOREIGN NATIONALS CONTINUE!

THIS MATEFa4J. CONTAINS INFORMATIONTHE NATlO>*iI)EFENSE OF THE UNITED STATES WITHIN THE MEAfJHH) OF THE ESPIONAGE LAWS.SC.ND IM. THEOR REVELATION OF WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSONOHIBITED BY LAW.

The Current Intellieerhw^WcrVily Summary has been prepared primarily lor the inU'ircrfc^ue Of the Central Intelligence Agency It floes notcomplCe coverage of all cuircnt situations. Comments anaScoritiusiiiR' represent Ihe Immediate apprai&il ol the OfficeIntelligence.

CURRENTKLY SU1INARY

brazil

confidence In the Goulart raglne, which roue steadily during the early bodths of this year, bas again fallen off. One inportant factor Is the expectationow cabinet. Congressional and gubernatorial elections are scheduledctober, andho run suat resign their cabinet po-.lsuly. Prime Minister Taacredo Moves, who la aaong those doing so, bas tended to support President Goulart rather than compote with bin, but Neves' successor may seek to utilize more fully the powers his office was given by the .constitutional amendment ofhrough which Brazilarllamentarv form of govornnent.

In the Sac Paulorace, former president Janlo Quadros bas improved bis standing and now may be running abreast of ex-Governor Adheamr de Barroness widely known protege of tho Incumbent governor. In the key north-sastern state of Pernambuco, pro-Communist Miguel Arraes appears to be the earlyas his opposition tries to agreettractive Goulart's brother-in-law

Leonel Brizola, governor of Rio Grando do Sul, has lost popularity ln bis home state, but onay he opened afor deputy from the state oftho city of Rio doaiolently attacking thn United States, North Amorlcans, and ths Alliance for Progress,

Both Arraes and Brizola say Tace legal Impediments to their candidacies,onstitutionalbarring from theand congressional races portions closely related to an incumbent state or federal chief executive. Arraes is tbe brother-la-law of Governor Sampalo of Pernambuco, although Arraes* elfo now is dead, andife is Presidentsister.

There also arc indications of instability in the economy. Therehortage of primeandmost major cities except In the three southernmost states, and this shortage is accentuated by hoarding. In tbe north and northeast, there have been floods in sons areas, while drought prevails elsewhere. The foreign exchange rate has fallen aboutercent since early May.

Spreading rural unrest was indicated by tbe killing of eight peoplelash between rural workers and police ln late May in Maranhao, revlounly pearo-ful northeastern state. I

June 62

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