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OR I GIN/ ACTION DEPARTMENT OF S^KTl fix ftp RM/ R REP AF FO I- / AR A EUR FE BUREAU OF CONFIDENTIAL N E A CU INR TO DEPARTMENT OF STATE E p IO 1, i INFO RIO DE JANEIRO L FBO AID 3 ; A G R COM FRB FROM : Amconsul, BELO HORIZONTE DATE: May 11, 1967 1 N T LAB TAR SUBJECT : Monthly Summary - April 1967 TR XMB AIR A REF : Belo Horizonte's A-35, April 6, 1967 f> A RM Y CIA N Ay Y 3 r Table of Contents OSD USI A NSA 3 S3 /*» MINAS GERAIS: 4 1. Governor Pinheiro Forming New Secretariat 2. nGuerrilheiro,, Activities Brasilia 3. Student Demonstrations Belem k. Kubitschek Returns to Minas Gerais Salvador 5. Governor Pinheiro Exonerated in NOVACAP Affair SsS Paulo 6. Trade Mission Visits Belo Horizonte 7. Transfers and Appointments en fl• 0- ESPIRITO SANTO: o irt 8. Commission Submits New Draft Constitution oa. C_) 9. Appointment to State Secretariat PSYCHOLOGICAL: 10. Punta del Este Summit Conference ***** GROUP IV Downgraded at 3-year intervals/Declassified 12 years after date or origin. l_ J CONFIDENTIAL FOR DEPT. USE ONLY D5-323 LB In nOut Drafted by: Contents and (Classification Approved by: WEPrice/JChallinor:t 5A,5,8,9/67 Clearances: DECLASSIFIED Authority Belo Horizonte A-36 MINAS GERAIS: CONFIDENTIAL 2 1. Governor Pinheiro Forming New Secretariat After weeks of delay, caused by squabbling and wrangling among ARENA members and between members and Governor Pinheiro regarding the political considerations and the criteria to be followed in selecting appointees to the Secretariat, in which loyalties generally adhered to old ex-party lines, Governor Pinheiro was finally able to begin naming new appointees to his Secretariat in mid-April. He has not completed the task as yet. To the senior position in the Secretariat Governor Pinheiro appointed J0S0 Franzen de LIMA (ex-UDN/ARENA) as the new Secretary of Interior and Justice. Franzen de Lima, a professor of law, a former President of the Minicipal Directorate of Belo Horizonte, and one of the founders of the UDN, replaces Cyro FRANCO. The former Vice President of Brazil, Federal Deputy Jos6 Maria Alkmim (ex- PSD/ARENA), one of the founders of the PSD, was appointed as the Secretary of Education vice Gerson Brlto de Melo BOSON who is now the Rector of the Federal university of Minas Gerais. Ovidio de ABREU (ex-PSD/ARENA), Secretary of the Treasury in Governor Valadares* Secretariat from 1939 to 19^5, later a Federal Deputy, was named to fill the portfolio of the Secretary of the Treasury. He replaces Jofre Goncalves de SOUZA. Clovis SALGADO (ex-PR/ARENA), formerly Minister of Education in ex-President Kubitschek*s Cabinet, was appointed as the Secretary of Health in place of Enio Pinto CORREA. State Deputy Francisco Jose" Bilac PINTO (ex-UDN/ARENA), son of the present Brazilian Ambassador to France, was appointed as the Secretary of Administration. Pinto replaces Raimundo Nonato de CASTRO. Comment: It is believed that at least for the time being Governor Pinheiro will retain Joaquim Ferreira GONCALVES as the Secretary of Public Security and Evaristo Soares de PAULA as the Secretary of Agriculture. According to well-placed sources, the incumbents of the remaining portfolios of Communications, Government, Labor and Cultural Affairs, and Supplies and Rural Credit are due to be changed very soon, possibly in May. Also, the position of Vice President of the State Council for Economic Development, regarded as a key position in the State Government, held by Luiz Gonzaga de Souza LIMA until he was appointed Mayor of Belo Horizonte in January, remains unfilled. Since his inauguration on January 31, 1966, Governor Pinheiro's administration has suffered because of the impermanent and transitory character of his CONFIDENTIAL DECLASSIFIED Authority Belo Horizonte A-36 CONFIDENTIAL 3 Secretariat and to some extent because of the generally average qualifications and capabilities of the incumbents. The appointment of Abreu as the Secretary of the Treasury is regarded as a matter of choosing the right man for the right place and as a result Minas Gerais* exceedingly weak financial position is expected to improve. This is also the case as it concerns the choice of Altanim as the Secretary of Education. 2. w^iuerrilheiro,, Activities Reference: Belo Horizonte 105, 106, and 107 dated April 7, lb, and 19, respectively. The initial capture of 13 "guerrilheiros" by the Minas Gerais Military Police in the Serra Caparad area of Minas Gerais on April 1 and the subsequent search and capture maneuvers effected during the following two and one-half week period by the combined forces of the Minas Gerais and Espirito Santo Military Police, Brazilian Army, and the Brazilian Air Force, effectively terminated any "guerriUheiro*' activities which had occurred in that area. By April 17 the military consensus was that all units had accomplished their missions and they accordingly made the decision to cease their search operations. On April 18 general evacuation of troops from the area was ordered, leaving only small detachments of Minas Gerais and Espirito Santo Military Police troops in the area to continue observations and keep their respective headquarters informed. As of the first week of May these troops were still operating in the Serra Ca- parao area on both sides of the border, but had not located any additional suspects. Acting on information received from residents in the area north of Governador Valadares, Minas Gerais, the Minas Gerais Military Police sent a small contingent to that area to search for t,guerriIheiros,,, but none was located and there was no firm evidence to indicate any had ever been there. Comment. The Commander and ranking officers of the Minas Gerais Military Police are of the opinion that l) definite connections exist between the "guerrilheiros" and Communist elements in Uruguary, 2) they were trained in Uruguay for the purpose of initiating terrorist activities in Minas Gerais, and 3) they had the support of Communist elements in Rio Grande do Sul. The officers strongly suspect that further investigations will reveal they are directly linked with and directed by the Goulart-Brizzola-AragXo-Ribeiro group of Brazilians exiled in Uruguay. It is hoped that as the Fourth Army Military Region proceeds with its inter• rogation of the prisoners, many points now in question can possibly be clarified. (CONFIDENTIAL) 3» Student Demonstrations Reference: Belo Horizonte 108, April 27, 19&7 CONFIDENTIAL DECLASSIFIED Authority Belo Horizonte A-36 CONFIDENTIAL k After an extended period of comparative calm, some 200 university students of the Federal University of Minas Gerais and Catholic University in Belo Horizonte declared their solidarity with the students in Brasilia and, in sympathy with their recent demonstrations involving Ambassador Tuthill, attempted demonstrations on April 27. The Military Police had prior knowledge of the students* intentions and were prepared for any eventuality. At about 7:30 a.m. students started milling around in front of the Law School, only two blocks distant from the Consulate. By 10:30 a.m. the group had increased to about 200 at which time they were haran• gued by student leaders and persuaded to commence their march. As the students started moving in mob formation from the Law School in the direction of the Consulate with the intention of moving onward toward the Sab Jose Church, center of last year's demonstration, the police in superior numbers quietly and slowly started walking toward them in formation, machine guns and rifles with bayonets at the ready. At that point the students burned an American flag which had been soaked previously in an inflammable fluid. This action happened so suddenly the police did not have sufficient time to prevent it. Students then began to pull slogan-bearing placards and banners from their pockets, but the police quickly discerned their intention and immediately con• fiscated them. None was ever displayed. By the time the students were within one-half block from the Consulate they were running and tending to disperse in all directions. Cooperating firemen sprayed water from fire hoses from mobile tank trucks on students which helped considerably in scattering them. The students never came near the Consulate in the form of a cohesive and effective group, but ran past it in disorganized knots of twos and threes. Farther along students began to regroup in the vicinity of the S80 Jose" Church, but the police by using tear-gas bombs finally dispersed them. The doors of the Sab Jose Church had been closed by the priests to prevent the students using it as a sanctuary as they did last year. It was in an area near the church on Belo Horizonte*s principal avenue that the second American flag was burned. This too happened so quickly the police had no time to intervene. While some six or so students were arrested, they were immediately released after questioning. Agents of the Department of Social Vigilance (DVS) had taken the precautionary measure of taking Jose Jarbas Saraiva CERQUEIRA, a left-wing student agitator, into custody on April 26 and holding him incommunicado. The lack of his pre• sence, given his ability to inflame the students and exhort them to violence, probably contributed as much as anything to the failure of the demonstration. Later in the day, after the demonstration attempt, students demanded the release of Cerqueira and threatened to strike if the DVS did not comply with their demand. Cerqueira was released on April 28, not because of the students* threat or demand but because holding him no longer served their purpose. CONFIDENTIAL Belo Horizonte A-36 CONFIDENTIAL 5 Comment: The students privately admitted their demonstration was a failure from their point of view, but publicly claimed they attained their aims.