Current Intelligence Weekly Summary

Approved for Release: 2026/03/06 C03176167
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CURRENT INTELLIGENCE WEEKLY SUMMARY
,-\
indulged in the petty sporadic
anti—USactivities of the Quadros
government, but neither is it
interested in reasserting Bra-
zil's traditional claim to be
the best friend of the United
States in Latin America. At
the Punta del Este conference,
Foreign Minister Dantas took
the most pro—Castro position
of any chief delegate. Dantas
now is heading Brazil's delega-
tion to the 17-nation disarma=-
ment conference in Geneva and
appears inclined to take a more
neutralist position than Mex-
ico, the only other Latin
American country at the con-
ference.
The Goulart government has
continued Quadros‘ policy of
developing closer relations
with the Sino-Soviet bloc. Qua-
dros had added to Brazilian
representation in Eastern Eu-
rope--previously confinedlto.
Czechoslovakia and Poland-—by
establishing relations with
Rumania, Bulgaria, Hungary,
and Albania. He had also ini-
tiated diplomatic negotiations
with the USSR and trade negotia-
tions with Communist China. The
Goulart regime re-established
relations with the USSR last
November and ratified a banking
and payments agreement with
Communist China in December.
A Soviet industrial exposition
is scheduled for Brazil in May,
and a Chinese Communist exposi-
tion is to take place in August.
Soviet First Deputy Premier
Mikoyan is reported planning
.-\
affecting foreign policy in Bra-
zil. Governor Brizola of Rio
Grande do Sul, for example, on
27 February advocated the ex-
propriation of all foreign enter-
prises in Brazil, including banks.
He announced preparations for
seizing a local subsidiary of
an American-owned power company.
The governor took over a subsid-
iary of International Telephone
and Telegraph Corporation earlier
in February, and in May 1959 he
seized the American and Foreign
Power outlet in his state cap-
ital.
The governor may have timed
these moves to embarrass Pres-
ident Goulart, his political
rival and brother-in-law, prior
to Goulart's visit to the United
States. Brizola, however, is
also seeking to build his na-
tional political reputation by
exploiting widespread Brazilian
dislike for foreign ownership
of utilities. He hopes to win
election as federal deputy in
October and then to be chosen
prime minister. A.
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and may offer Brazil large-
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Gubernatorial*Autonomy
Individual Brazilian states
have considerable autonomy, and
recent activities of several
governors have further reflect-
ed the nationalist pressures
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23 Mar C2 SPECIAL ARTICLES Page 3 of 8
Approved for Release: 2026/03/06 C03176167 d