CIWR: BRAZIL

Created: 9/28/1961

OCR scan of the original document, errors are possible

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Current Intelligenceeview

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CENTRAL INTELLIGENCE AGENCY

office of current intelligence

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CURRENT IMTELLIGENCE WEEKLY REVIEW

7.

Brazilian President Joao Goulart appears to havehla political posltlOB steadily during the paat three weeks, despite thaal amendmenteptember transferring executive powerrime minister. Prime Minister Tancredo Keves seems to be working with Goulart rather than competing for power. Goulart and hie political allies have dropped their campaign for an early plebiscite to rescind the constitutional amendment,

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wielding the former powers of the presidency.

In the dlatrlbution of cabinet postseptember, the President apparently failed to secure the lucrative Public Works Ministry portfolioember of hie Labor party, but men from his home state of Rio Grande do Sul have been appointed to several keyposts, including the presidencies of the Bank of Brazil and of tbe EconomicBank. The head of the President'n Clvl1"household"post normally reaerved for the chief politicalIs Professor Bermes Lima, who criticizes the US economic system but Insists that Brazil must align Itself with the United States politically. Pro-US Antonio Balblno, formerof Bahla, le also acting as political assistant to The stronglyGeneral Amaury Xruel has

been appointed head of the"household."

The Brazilian Communist party (PCB) and Penaant Leagues leader Francisco Juliao arehopeful of actions and

appointments by the newwhich wilt allow them to Increase their influence. Goulart has appointed Raul Riff, aparty member, as hla private secretary. The new attorneyEvandro Llns, who accompanied Goulart on hla recent trip to Pal-pingong record ofCoamunlst causes, haa attended Communist International meetings, and has acted as legal counsel for Comnunlate. although hehas not been active In such matters in the past five years. The new chief of police inarmy Colonel Carlos Calroll, le also reported to haveassociations.

Keves reportedlyelegation of Communiat labor leaders to support his admln-letratlon, stating that the government would follow Quadros' foreign policy. The labor lead-era are said to have answered that they could not pledge their support until they saw what steps would be taken.

Goulart's Initial public statements have been devoid of radicalism. essage to Congress concerning tbe depressed northeast, for instance, he recommended that the development program for the area Include theof snail. Individually owned farms and be free from all political and partlaan Influence. Goulart's address oneptemberarge reception,whichizable Communist-led Student and labor group, was generally cautious, although he did emphasize his association with Getullo Varga--Hrar.il'sdictator and anlf-styled "father of the poor." ff^ft^

Original document.

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