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Brazil / Background Color 12/3/90 [OA 8320] [1]
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Brazil / Background Color 12/3/90 [OA 8320] [1]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Speech Backup Chronological Files
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Originally Processed With FOIA(s):
FOIA Number:
S; 2004-0734-F; 2009-1186-F
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Backup Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13741
Folder ID Number:
13741-007
Folder Title:
Brazil / Background Color 12/3/90 [OA 8320 [1]
Stack:
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Section:
Shelf:
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G
26
21
2
1
BSB
Barbara Tobias
Home 248-1561
PRIMEIRA SECRETÁRIA
CHEFE DA SEÇÃO CIENTIFICA
science attache
control officer Manaus
Com os cumprimentos de
EMBAIXADA DOS
Robert F. Jordan
ESTADOS UNIDOS DA AMERICA
TELS.: 321-7272 RAMAL 219
BRASÍLIA, DF
Diretor do USIS Brasil
225-9894 (DIRETO)
10
November 30, 1990
MEMORANDUM
TO:
DAVID DEMAREST
CHRISS WINSTON
MARK LANGE
CHRISTINA MARTIN
FROM:
CAROLYN CAWLEY
RE:
BRAZIL SPEECHES: PORTUGESE PRONUNCIATIONS
NOTE: Brasilia brah-SEE-lyah
I.
JOINT SESSION ADDRESS
Obrigado
oh-bree-GAH-tho
Thank you
Nelson Carneiro
carrr-NAY-ee-rrro
Paes de Andrade
pah-ess deh ahn-DRRRAH-dee
Ronan Tito
rrrho-NAHN TEE-toe
Ricardo Fiuza
fee-00H-zah
NEH
Neri da Silveira
nea-rrree dah seel-VAY-rrrah
Dom Freire Falcao
DOME FRRRAY-reh fahl-kohm
** Fernando Collor caller (as in telephone caller)
Jose Bonifacio
ZHHOH-zay bo-nee-FAW-syo
Juscelino Kubitschek
zhhhoo-say-LEE-noh
kod-bee-shek
KOO
11
II. BRAZILIAN BUSINESS LEADERS LUNCHEON
Jarbas Passarinho ZHHHARRR-ba poss-ah-REE-nyo
MEH-10W
Zelia Cardoso de Mello zell-ya car-doh-zoh deh mellow
Antonio Cabrera Mano Filho
awn-TOE-nyo caw-BRRRAY-rah
maw-noh FEEL-yo
Ozires Silva
oh-ZEE-rehss SEEL-vah
Fernando Collor
caller (as in telephone caller)
Para
paw-RAH
Rio Grande do Sul REE-oh GRRRAN-day doh SOOL
Sao Paulo
SAW-oh PAW-loh
bearrr
Gilberto Freyre
HEEL-bear-toe FRRRAY-reh
12
III. STATE DINNER TOAST
Fernando Collor
caller (as in telephone caller)
Rosane Collor
RRRHO-zhah-nay caller
Itamar Franco
EAT-uh-marrr FRRRAHN-ko
Nelson Carneiro
carr-NAY-ee-rrro
Paes de Andrade
pah - ess deh ann - DRRRAH-dee
Neri da Silveira
NEH-rrree dah sed-VAT-rrah
VOLUME 7
Civilization to Coronium
THE ENCYCLOPEDIA
AMERICANA
INTERNATIONAL EDITION
COMPLETE IN THIRTY VOLUMES
FIRST PUBLISHED IN 1829
GROLIER INCORPORATED
International Headquarters: Danbury, Connecticut 06816
statements made by his early biographers and by
to observe some of the pecu
contemporary commentators. He was Cristoforo
east trade wind.
Colombo, a Ligurian, born in or near Genoa,
In the early 1480's Co
probably in 1451. He remained a loyal citizen of
again, for at least one vo
Genoa all his life and at his death bequeathed
Guinea, possibly in the fle
several legacies to families or individuals resident
buja, who established the
there. Though he and his son and biographer
fortress of São Jorge da Min
Fernando indulged in fantasies of remote noble
It is not known in what ca
ancestry, there is no doubt that members of his
was evidently impressed by
immediate family were comparatively humble
years he often compared th
folk. His father was a master weaver, who also
tants of the islands he disc
seems to have kept a wineshop for a time.
Guinea, and repeatedly spol
Christopher received little or no formal edu.
discovering a "mine" in His
cation in his youth. So far as is known he never
voyage or voyages, indeed,
wrote in Italian, and probably never had occa-
ration for the task of discove
sion to do so. His native Ligurian dialect was not
The Enterprise of the In
then, and is not now, a written language. All his
professional seaman, Colui
surviving writing is in Castilian, just as all his
during his Portuguese years
major achievements were in the service of Cas-
going experience in precisely
tile, but he used many Portuguese spellings and
ocean exploration was most
tricks of phrase, which suggest that he learned
One may reasonably infer t1
to read and write in Portugal. (The Spanish
he formed, from talk, readi
form of his name is Cristóbal Colón.)
his basic cosmographical ide
Columbus appears to have spent much of his
at least in outline, the pro
youth working at his father's trade. By his own
covery that in later years 1
account, however, he began to follow the sea at
Enterprise of the Indies.
a tender age, and his periods of work at the
The nature of Columbus'
loom may have been interspersed with coasting
cisely known, and his inten
METROPOLITAN MUSEUM OF ART-GIFT OF J.
voyages, possibly to collect supplies of wool or
subject of considerable conti
PIERPONT MORGAN 1900
wine. In his early twenties he began to make
ars think that he originally
CHRISTOPHER COLUMBUS, in a portrait painted in
longer voyages: one to Marseille and Tunis, at
than the discovery of some
1519 by the Italian artist Sebastiano del Piombo.
least one to Chios-then a Genoese colony-and
sibly Atlantis or Antilla, the
in 1476 one, intended for Flanders and England,
Seven Cities. This hypothe
that got no farther than Cape St. Vincent. The
tion of widespread lying or
COLUMBUS, ka-lum'bas, Christopher (c. 1451-
ship in which Columbus sailed-presumably as a
of Columbus' early biogra
1506), Italian navigator in the service of Spain.
deckhand-was sunk by French privateers, and
difficulties than it solves. T
Columbus commanded, in 1492, the first recorded
Columbus landed penniless in Portugal. From
which he eventually sailed
European expedition to cross the Atlantic Ocean
Lagos he made his way to Lisbon, where he
him to "discover islands ai
in warm or temperate latitudes.
was taken in by one of the numerous resident
Ocean Sea." This was a stanc
He was not the first European to land in the
Genoese.
which in this instance proba
Americas: adventurers from Norway, Iceland, or
Preparation at Sea. Columbus' fortuitous ar-
if such a place existed. Ali
Greenland, in the late 10th and early 11th cen-
rival in Portugal was probably the chief turning
ever, the phrase "islands and
turies, had almost certainly settled briefly in
point of his career. Lisbon was then the principal
understood to mean Cipang
Newfoundland and may have landed elsewhere
European center of overseas exploration. Colum-
names by which Marco Pol
on the Atlantic coast of North America. "Vin-
bus learned to read and write, picked up Portu-
century, had described Japa
land," the Norse name for the part of America
guese, Castilian, and a smattering of Latin, gained
There was nothing fantas
that they knew, appears in Adam von Bremen's
experience in oceangoing seamanship, and ac-
a proposal to reach Asia by S
11th century ecclesiastical history, as well as in
quired most of his knowledge of navigation and
the earth was known to be
several works produced in the 14th and 15th
hydrography. He may, indeed, have been con-
there was no suspicion of
centuries.
cerned, with his brother Bartholomew, in a chart-
tinent, the practical possil
There is also some evidence to the effect that
selling business in Lisbon. Fire and earthquake
winds, on currents, and ab
fishermen from the western part of England may
have destroyed records, and the outlines of his
In believing that the distance
have sighted some part of northern North Amer-
life in Portugal have to be inferred from his
short, Columbus was follo'
ica at about the same time as Columbus' first
own allusions and his son's account.
thorities, especially Pierre di
voyage, or possibly earlier. But there is no evi-
In 1477 he shipped on a voyage to Ireland
mundi (Image of the Worl
dence-indeed, it is unlikely-that Columbus
and Iceland. In 1478 he was sent by one of the
His conviction was apparen
knew of these Bristol voyages, or of the earlier
Genoese merchants resident in Lisbon to Madeira
correspondence with a disti
Norse discoveries.
to buy sugar and deliver it in Genoa. Trusted by
His achievement, moreover, is distinguished
Paolo Toscanelli, who had
rary, the Florentine physicia
the leaders of the Genoese community, he evi-
from the earlier adventures not only by the lati-
dently prospered, and contracted, in about 1479,
theoretical grounds, the feas
tudes in which it was made and by the much
an advantageous marriage. Felipa Perestrello e
had,
longer ocean passages that it entailed, but also by
Moniz was the daughter of a widow of distin-
on t]
its consequences. The early northern voyages were
guished family, who had inherited property in
without significant result. Columbus' discoveries
to the Portuguese crown t
The Search for Support. No
Madeira and an interest in the hereditary cap-
in the West Indies were followed by rapid, wide-
taincy of Pôrto Santo. Columbus apparently
spread, and permanent settlement. In this sense
went with his wife to live in Madeira, possibly
the chronicler João de Ba
applied for support, in 1484
it may be said that Columbus discovered America.
as a merchant, and remained there for two of
Early Years. There is little doubt, though
Africa and to the search for
however, was already heavily
specifically mentioned in his
three years. Diego, his only legitimate son, was
there has been much discussion, about Columbus'
born there in 1480. From his wife's family he
nationality and origins. Attempts have been made
probably learned much of the recent-and con-
India. his Diogo Cam (or Cão)
to prove that he was a Spaniard, a Catalan, a
tinuing-story of island discovery and settlement
Jew of Spanish or Catalan descent, even a Greek.
and caught the optimistic enthusiasm for new In
But the overwhelming weight of evidence and the
islands that was characteristic
opinion of almost all serious scholars support the
Madeira also he would have had the the opportunity
a on the
first the Cong
declined after a careful heari
an at
344
I
GATT will be underway in Brussels.
2
Southern most point of So. Am:
straits of Magellan or cape Horn
3
Canada to Brazil :
Saskatchewan to Sao Paulo
Beth
Bennett
so. America
C
A
straits of Magellan
Tierra
B
o
CR
cape Horn
The first atmosphere of the earth
AILANTHUS
water vapor, ammonia, 1
(left,
A.
is a smooth-barked tree,
med of of ane. Oxygen appeared later,
21 feet tall, that commanly the
cultivated in the
lations from plants. Other gases, su
tolysis of water vapor, but largel:
United States. Its northeastern leaves
resulted from the decay of radioa
composed of 13 to 25
ments
in the earth. Most of the ligh
have an unpleasant odor. Rever
and its greenish-white
ach from the earth long ago. The fi
as hydrogen, in the first atmos
caped was replaced by subsequent e:
from plants, and b
STEPHEN COLLINS FROM PHOTO RESEARCHERS
(breaking up of
T.H. EVERETT
molecules by sunlight).
AILANTHUS, ã-lan'thes, is a genus of trees, com-
AINU, i'noo, aborigines of the North Pacific
Air constantly cycles through the
monly known as tree of heaven, that is native to
habiting the Kuril (Kurile) Islands, Saki
bring organisms (the biosphere). It
eastern and southern Asia and northern Australia.
Island, and Hokkaido, the northernmost
istimated that the entire oxygen conte
The trees also are naturalized in subtropical and
of Japan. They are probably of Caucasian stock
elmosphere passes through the biosph
temperate regions elsewhere.
being fair-skinned and round-eyed. Because
1,000 years, and the entire carbon dic
A smooth-barked, rapidly growing tree, the
men have long, wavy hair and often wear bearding
lest of the air is consumed and replac
ailanthus has large, ferny leaves with one dozen
the Ainu have been called hairy. In fact, they
biosphere every 10 years.
to three dozen leaflets identified by solitary
are not especially so, except in comparison
Oxygen, Nirrogen, and Argon. Amon
pimplelike glands on the largest notches of the
the smooth-skinned Mongoloids who inhabe
recognize that air is a mixture of
leaf margins. The flowers are borne in clusters
nearby areas.
John Mayow, in the 17th century, who
on the upper branches. Male trees have small
Little is known of their origin, but most
part of air that supports combustic
malodorous flowers; the flowers of the female
thorities regard the Ainu as descendants
of
(later named oxygen) from the inert
trees ripen* into grayish masses of papery wings
Neolithic people who once occupied all of Japan
does not. In the 18th century, the iner
and persist until the wind scatters their seeds
In past centuries, under the impact of Japanese
alled nephitic (poisonous) air by Dani
widely. In hot weather, ailanthus seedlings de-
expansion, the Ainu were greatly reduced
lard; Lavoisier called it azote (lifeles
velop rapidly. If hoed out, they sprout back.
number and gradually pushed northward into
leived its present name, nitrogen, in 18
Old trees may sprout when cut down, forming
areas they now occupy. They now number
the historians grant equal credit for the
thickets that are difficult to eradicate, even with
proximately 15,000.
oxygen (1773-1774) to Carl Wilhel
herbicides. Though frequently a nuisance, ailan-
The life of the Ainu has been practically
and Joseph Priestley. In 1756, N
thus trees withstand industrial pollution and
touched by modern civilization. Their chief
Lamonosov recognized that rusting O:
neglect, and they are valued in the parks and
cupations are fishing and hunting, and they
doe to the action of air. In 1794,
zoos of large cities.
use millet and wild fruits and vegetables for food
showed that oxygen was the responsibl
The genus Ailanthus belongs to the quassia
The spoken language, in several dialects, is
In 1784, Henry Cavendish publish
family, Simaroubaceae. A. glandulosa is the
related to any other known tongue. There is
incurate determination of the composi
common species. A handsome variety, erythro-
written language, but songs and stories have bere
79.16 percent nitrogen and 20.84 perc
passed orally from generation to generation,
(by volume). These values are remar
carpa, with brilliant red seed clusters, is rare in
the Western Hemisphere except in parts of Cali-
The Ainu religion is animistic and employee
the currently accepted values (7
fornia.
many fetishes, notably whittled twigs to
(0.948). Later, Cavendish found tha
EDGAR ANDERSON
the shavings are left attached. A distinctive
was left over after all the nit
Missouri Botanical Garden
ture of Ainu worship is the bear cult. Your
mygen had been removed from the ait
bear cubs are carefully raised in the villages
identified as argon by Lord Ra
AILLY, à-yē', Pierre d' (1350-1420), French
sacrificed in joyful, elaborate rituals when as
William Ramsay in 1894.
araft forjoint Session
cardinal, theologian, and philosopher. He was
are two years old.
Carbon Dioxide. The first atmosphe
born at Compiègne, and studied at the College
to be identified was carbon dio
of Navarre, in Paris. In 1381 he became a doctor
AIR, âr, is the mixture of gases that composes
of theology, and in 1389 he was appointed chan-
atmosphere of the earth. At altitudes below
lista van Helmont and described by Jc
recognized in the 17th century b
cellor of the University of Paris. Subsequently,
1755. Like water vapor, carbon di
p.2 of 11-26-90
the mixture are molecular nitrogen and oxygen
kilometers (62 miles) the predominant gases
effective absorber of infrared radiatio
he was named bishop of Puy (1395) and of
Cambrai (1397) and in 1411 was made a cardi-
After water vapor has been removed from and
the and thus this gas plays an imp
nal.
air, nitrogen and oxygen constitute 78
atinospheric heat balance. Carl
D'Ailly took an active part in the Council of
percent (by volume) of the air, respectively.
Constance (1414-1418). The council ended the
remaining 1 percent of this dry
plants, by bacterial action on d
the atmosphere by exhalations
Great Schism of the West, which had split the
and small quantities of neon, helium,
cipally of argon. In addition, kryper
matter, and by the burning of ca
church into factions supporting rival claimants
The burning of fuel may b
to the papacy. Cardinal d'Ailly defended the
xenon, hydrogen, nitrous
the carbon dioxide content of
conciliar theory-the belief that an ecumenical
(N2O) are found as
council should be superior to the pope.
Water vapor, one methan a constant componensens.com -
plants and the sea.
dioxide leaves the air largely by
and possibly changing the cli
As a philosopher, d'Ailly followed the teach-
of air, constitutes less than 3 percent
ing of William of Occam and promoted his sys-
the most humid air. Nevertheless, water
Redioactive Gases. Small quantitie
tem at the University of Paris. As a church
is essential for life as we know for
- of ardment by cosmic rays and the
gases found in the air as
leader, he contributed to the Gregorian reform of
the calendar. As a writer, he influenced Colum-
variable ozone 0.07 part (O₃). component per Its million concentration, of air of necessary air which near is sea less
1
term, radioactive materials, SU
bus through his teaching that the Indies could
I
These three ma
be reached by sailing west. A copy of his Image
rises to a maximum of
earth exhales
of the World, now in the Columbian Library at
in the ozone layer at
Seville, contains many marginal notes in Colum-
above sea level. This layer thus
are believed to be small. Ir
each second, but it
bus' handwriting.
the earth from Other
ultraviolet radiation from the sun and
BERNARDINO M. BONANSEA
The Catholic University of America
dioxide, and traces and
components of harmful radiation dioxide
a a prod
of
carbon-1
vancination dioxide, which result
See
and iodine.
of carbon-14 and oxygen
Ref
AE5
E4 VOLUME 1
A to Anjou
1989
V.I
WH
THE ENCYCLOPEDIA
AMERICANA
INTERNATIONAL EDITION
COMPLETE IN THIRTY VOLUMES
FIRST PUBLISHED IN 1829
GROLIER INCORPORATED
International Headquarters: Danbury, Connecticut 06816
World
BRAZIL
The Biggest
Shake-Up
To save his stumbling country, Collor tries the
most radical reform ever-but the hardest part is
how to make it stick
at the same time staving off public de-
Certainly, Brazil's potential is enormous. It
mands to push his rigorous program off
has immense rivers and forests, rich agricul-
track. Can he do it? Warns Brazilian politi-
tural lands, huge deposits of gold, gems, pe-
cal scientist Walter de Goes: "The special-
troleum, iron ore and minerals. With a gross
ity of this economic team is detonating
domestic product of $350 billion and annual
bombs, not picking up the pieces."
exports of S34 billion, it is Latin America's
No one disputes that the youngest
most developed nation.
President in Brazil's history-he is 40-has
But alongside that highly industrialized
By MICHAEL S. SERRILL BRASILIA
shaken up his nation as has no other recent
Brazil lives another, desperately poor
f the lesson of these times is that free
chief executive. Hurrying to create "O Bra-
country where 70% of the 150 million citi-
markets succeed where governments
sil Novo," the new Brazil he promised dur-
zens live in poverty. That is the legacy of
fail, Brazilian President Fernando
ing his campaign, he has reduced an 84%
the chronic overspending that began in the
Collor de Mello is a very voguish
monthly inflation rate to less than 13%;
1970s when military rulers borrowed heavi-
thinker. Though his effort to revive his
axed some 100,000 employees from the
ly from Western banks to cope with spiral-
country's punch-drunk economy gets much
government payroll; and begun to halt the
ing petroleum prices and to finance an am-
less attention than the shake-ups trans-
destruction of the country's greatest re-
bitious industrial expansion scheme. By
forming Eastern Europe, his monetary
source, the Amazon rain forest.
the time Collor took office, Brazil was sad-
program is every bit as revolutionary. To
Collor describes his goal in a phrase bor-
dled with a $115 billion foreign debt. Inter-
corset the bloated public sector and turn
rowed from the Spanish conquistador Her-
est payments to foreign commercial banks
the economy over to the entrepreneurs,
nán Cortés: "To win-or to win." His long-
were stopped last July. Chaos loomed as
Collor has adopted policies more radical
distance vision is to boost Brazil from the
the economy zoomed into hyperinflation,
than anything attempted in Brazil in dec-
Third to the First World, and he is convinced
with prices rising at a rate of more than
ades-or perhaps ever-since taking office
he can do it with a freer market, greater in-
100,000% annually.
on March 15. His approach, says Kenneth
dustrial efficiency and a leaner bureaucracy.
Collor's answer was a monetary "shock"
Maxwell, senior fellow at the New
that a Bank of Boston report called
York City-based Council on Foreign
AMBITIOUS
MODEST
"the most severe program of econom-
Relations, "is the most severe one-
ic stabilization ever imposed in a Latin
bullet strategy to beat inflation at-
PLANS
IMPACT
American country, or perhaps in any
tempted anywhere in the world."
country." Under its main provisions,
But can he make it stick? And will
Collor froze financial assets
The 84% monthly inflation
the majority of all financial assets, in-
it work? While economists believe
worth $1,200 or more for 18
rate was briefly reduced to
cluding savings accounts in excess of
that Collor's bold program is well
months, removing $85
single digits, but a massive
about $1,200, were frozen for 18
reasoned and long overdue, the con-
billion from circulation
slowdown of industry
months. Millions of Brazilians were
sensus is that he overshot the mark
resulted
affected: Collor's action took about
initially, stopping inflation but nearly
$85 billion out of play, abruptly halted
halting business as well. In the pro-
Abolished two dozen state
The budget deficit, 7.2% of
most business activity and dropped in-
cess, he has angered Big Business,
agencies and axed some
gross domestic product,
flation to 3.29% in April. Collor also
alienated much of the middle class,
100,000 employees from
was reversed to yield a
announced the immediate abolition
and invited the risk of a major reces-
the government payroll
1.2% surplus for 1990, but
of two dozen state agencies and said
sion. He has also provoked the wrath
GDP is expected to decline
he would sell off most state-owned in-
of Big Labor, as evidenced last week
dustries. In addition, he called for
Declared that the Amazon
The military was sent in to
by strikes at a state-run steel plant
massive public-sector layoffs and
outside Rio de Janeiro and at the
would be protected and
blow up several illegal
higher taxes. The cruzado novo was
main Ford auto factory near São
appointed a leading ecology
airstrips built by gold
replaced by the cruzeiro, Brazil's
critic as environment chief
miners trespassing on
Paulo. Now Collor must scramble to
fourth currency in four years.
Indian lands
reaffirm his popular mandate, while
At the same time, Collor reversed
30
TIME. AUGUST6, 1990
435
ESTAMOS EM GREVE
COMISSÃO
DE
ESCLARECIMENTO
SIND.
Strikes threaten to erode Collor's mandate
cruzeiros by using them to pay taxes and
belt), riding his motorcycle or piloting an
debts. Exceptions were also made for retir-
a long-standing government policy that
ultra-light aircraft. The son of a wealthy,
ees, unemployed workers and people need-
treated the Amazon basin principally as a
political family, he makes no attempt to
ing emergency medical treatment.
hide his affluence, favoring custom-tai-
source of wood products and a locale for de-
By mid-May, more than half the frozen
velopment. He declared that he would work
lored European suits and fancy watches.
funds were back in circulation. The remain-
But his personal style gets mixed reviews.
ANDRE ABRIL IMAGENS
vigorously to stop the burning of the forest
der belonged to increasingly irate middle-
What some call confidence others call arro-
by ranchers and settlers, then appointed
class Brazilians who would not gain access to
gance. The one thing few dare to call him is
Brazil's foremost environmental. activist,
their money until September 1991. "The
José Lutzenberger, to enforce the program.
Fernando; the President dislikes being ad-
feeling was that [Collor and his government]
In an interview with TIME, Collor was un-
dressed by his first name. Collor, says his
did something very dramatic, and then they
chief of staff, Marcos Coimbra, "is secure.
apologetic about the abrupt turnaround.
simply blew it off through bad manage-
"On questions of ecology, we have made a
responsible, determined." Others charge
ment," says economist Edmar Bacha of the
that Collor is too autocratic. Says Herbert de
fundamental commitment to life," he said.
Pontifical Catholic University in Rio. "That
Souza, who runs a left-wing think tank in
"We have nothing to hide and nothing to
gave the impression that the rich got away
explain."
Rio: "He's like a doctor who tells us he's go-
with it again." The meltdown of the program
ing to cause us the maximum pain and suf-
In June a "new industrial policy" was
rekindled inflation, which more than tripled
fering, but it's for our own good."
added that abolished import quotas and
to a rate of 12.9% last month. That set off
Brazil's fractious Congress has moved
removed bureaucratic red tape, and aims
new price hikes, which led workers to de-
quickly to capitalize on the slippage in pub-
to slash high tariffs over the next five years.
mand salary increases and wage indexation.
lic enthusiasm. In July it approved an infla-
The move effectively ended an indulgent
tionary wage-indexation program that calls
era of high tariffs and import quotas, dur-
c
ollor has run into other prob-
for monthly upward adjustments of sala-
ing which duties ranged up to 105% and
lems. The Central Union of
ries. The President, whose tiny National
imports of 1.200 goods were prohibited
Workers, representing many gov-
Reconstruction Party has only a handful of
outright. Still to be tackled is the thorny is-
ernment employees. has threat-
congressional seats, has vowed to veto the
sue of foreign debt. Since Brazil stopped
ened work stoppages to block the privati-
payments, arrears of S7 billion have accu-
bill, a move certain to be unpopular. To
zation of state-owned industries. A plan to
mulated, taxing the patience of creditors.
avoid a backlash at the polls two months
furlough bureaucrats has-stumbled on a
from now in congressional elections. the
Initially. both the Brazilian public and
provision of the 1988 constitution that
government will offer low-income workers
Congress applauded Collor's program, es-
grants lifetime employment guarantees to
a onetime wage bonus. Following through
pecially the asset freeze, which was per-
all civil servants with five years' tenure.
ceived as a slap at the rich. After all, 9 of 10
on the rest of his program will depend
The President has tried to circumvent the
heavily on the returns from those elections.
Brazilian depositors had less than S1,200 in
law by putting employees on "reserve" sta-
the bank. Then Collor and his relatively in-
when as many as 70% of the current legis-
tus and reducing their pay, but the Su-
experienced team blinked. Fearing a full-
lators may be replaced. The question is
preme Court has stifled that effort.
whether the infusion of fresh blood will
blown recession. they made it possible for
To counter the setbacks, Collor strives
help Collor in his drive toward the First
many businesses and individuals to recover
to keep his personal popularity high with
World-or will erect new Third World
frozen funds. Companies were allowed to
feats of derring-do. On weekends he can
roadblocks. - With reporting by John Maier/
trade impounded cruzados for negotiable
be spotted practicing karate (he has a black
Rio de Janeiro and lan McCluskey/Brasilia
TIME. AUGUST 6. 1990
31
President Bush
Current
Policy
Latin America's
No. 1286
Year of Freedom
United States Department of State
Bureau of Public Affairs
Washington, DC
Following are remarks delivered by
I am here today to assure you,
than ever before to the day when all
President Bush to the Council of the
just as I have assured the many Latin
the people of the Americas, North
Americas, Washington, DC, May 22,
American leaders I have met with,
and South, will live in freedom.
1990.
that the events of the past year have
Even in Haiti, the scene of so
increased US interest in this region-
much human suffering and anguish
[Introductory remarks deleted.
]
strengthened our desire to forge a
and turmoil, the provisional govern-
new partnership with the growing
ment has now announced its intention
I am pleased once again to speak to
forces of freedom in Latin America.
to hold free elections. This Thursday
this most influential group-pioneers
in the private-sector effort to expand
Because the fact is, the great drama
[May 24], I will be meeting at the
trade and investment between the
of democracy is unfolding right here
White House with the new leader of
United States and Latin America.
in our own hemisphere.
Haiti [Ertha Trouillot], where we are
And I am delighted to address this
Think about the tremendous gains
sure to discuss ways we can support
made for freedom this past year.
democracy in Haiti. In all of Latin
gathering after what has been a
When I spoke here last May, the
America, only Cuba-Castro's
remarkable year of change.
Over the past 12 months, it has
people of Panama were preparing to
island-remains isolated, out of step
sometimes seemed that the eyes of
go to the polls-even as the dictator
with the democratic tide. But today
of Panama was preparing to steal the
we are celebrating the anniversary of
the world rest solely on Eastern
election. In Nicaragua, civil war
Cuban independence. Let me say
Europe-on the miraculous transfor-
mation that has taken place there.
raged, the Sandinistas ruled, and the
with certainty that even in Cuba, the
brave men and women of the Nicara-
dream of democracy can only be
Our friends in Latin America have
watched these historic events unfold
guan opposition were just beginning
pushed back a little, only be de-
the long campaign that led to this
ferred-it will never be destroyed.
with inspiration and awe. But also, I
know, with an unmistakable sense of
year's great victory for democracy.
As we in the United States
In Central America: Nicaragua
welcome our Central and South
anxiety [and] concern that our active
and Panama; in South America:
American neighbors into the ranks of
involvement in Europe will mean a
decline in US interest in Latin
Paraguay and Chile, all across the
democracy, we must offer them our
America.
Americas, today more people live
under freely elected governments
than ever before, and we are closer
help and something more; we must
Peruvian economist Hernando de
In Chile, with an overall growth rate
offer them our respect, the respect
Soto describes the maze of bureau-
of 10%, US exports increased by
due one free nation from another, and
cratic barriers that stood in the way
triple that rate-more than 30
the outstretched hand of partnership.
of the entrepreneur and stifled
percentage points.
I have been working to
economic growth in his country. De
The most effective way to ensure
strengthen our ties. Just this year
Soto also shows how much Lima,
expansion of trade between the
alone, I have met with Presidents
Peru's capital, owed its economic
United States and Latin America is
Barco [Colombia], Paz [Bolivia], and
vitality to what he calls the "informal
for all countries of the hemisphere to
Garcia [Peru], at the Andean drug
sector"-the thousands of independ-
support a successful Uruguay Round.
summit in Cartagena.
Here in
ent and enterprising individuals
The ambitious agenda in the Uruguay
Washington, I have hosted Presi-
doing business without the consent of
Round, including proposals for
dents Perez [Venezuela], Paz Zam-
the State.
significant multilateral tariff reduc-
ora, Cristiani [El Salvador] and
De Soto's prescription-and
tions, will benefit our Latin American
Endara [Panama], Collor de Mello
mine-is to free this economic force:
trading partners. We are committed
[Brazil], Calderon [Costa Rica], and
unleash the million sparks of energy
to the expansion of trade and invest-
Callejas [Honduras], and Prime
and enterprise; let the incentive of
ment liberalization, and we seek
Minister Manley [Jamaica]. In each
reward inspire men and women to
Latin American support for these
case, I have come away from our
work to better themselves and their
very important objectives. In addi-
talks with a strong sense of optimism.
families.
tion, the strengthened debt strategy
And I believe every one of those
Already, Latin America is discov-
launched last spring has reinvigor-
leaders left the White House knowing
ering this path. In Brazil and Bolivia,
ated market-oriented economies and
that the United States is engaged as
in Argentina, Venezuela, Mexico,
reinvigorated the reforms in Latin
never before in the future of this
Costa Rica, and Jamaica-free
America. These economies help
hemisphere.
market reforms are going forward,
provide the needed foundation for
creating space for private initiative to
democracy itself.
Democracy and Development
take hold and flourish. As they
That's why I am so pleased to
succeed and as they reap the rewards
report on the progress we've made
While from country to country
that will follow this—I would say
this past year under the Brady plan.
conditions differ, we know now that
what will certainly be a painful
Mexico, Venezuela, and Costa Rica
our challenge is to consolidate
transition-these nations will bring
have all reached agreements with
democracy and accelerate develop-
others in their wake.
their creditors on ways to reduce
ment. That means advancing the
We in the United States must do
their debt; ways to complement their
intellectual revolution now sweeping
all we can to ensure the future of free
efforts to restructure their economies
Latin America, a movement away
markets in the Americas because our
along free-market lines. Because in
from stale, statist doctrines; away
nation has a stake in the economic
the long term, the free market
from dictatorships of the right and
health of this hemisphere. We know
remains the only path to sustained
left; toward democracy, free govern-
that since the late 1970s, Latin
growth.
ment, free enterprise; toward the
America's share of all US trade
true political and economic empower-
dropped from 10% of all US exports,
Role of the Private Sector
ment of the people.
down to 7%. And yet last year, for
That means encouraging, for the
the first time ever, two-way trade
We all know the private sector plays
first time in many cases, genuine free
between the United States and Latin
a crucial role. Taking advantage of
market reform. Even in countries
America topped $100 billion. As that
new investment opportunities is good
that claimed no kinship with commu-
trade continues to grow, so will the
for business, but at this critical
nism, true free enterprise did not
link between our prosperity and the
moment there is something beyond
exist. In practice, economies were
prosperity of our Latin American
the bottom line; something that
often organized to ensure the pros-
partners.
cannot be measured simply in terms
perity of the people in power-not to
Let me provide a few statistics to
of GNP. The role the Council of the
open an avenue toward upward
drive home this point: Last year, the
Americas can play-expanding trade
mobility for anyone ready and willing
Colombian economy grew 3%; US
and strengthening the private
to work.
exports to Colombia rose 9%. Mex-
ico's economy grew 3%, and US
exports to that country climbed 21%.
2
Pil of 11-26-90
Paraft for Joint
Session.
sector-contributes not only just to
in your hands. Do the work of
way the Sandinistas had politicized
economic growth but to the growth of
democracy-and pass this emergency
the schools. Today, Mr. Cisneros is
democracy itself.
aid package now.
minister of education.
Now, there is an important role
for government to play as well-
And on July 10, 1988, opposition
Personal Stories of Freedom
especially during the difficult days of
leader Myriam Arguello was beaten,
transition from dictatorship to
Today, I began by speaking about the
taken from her home in the middle of
democracy. That's why I have called
changes that have riveted world
the night by Sandinista police, tried,
on Congress to provide $800 million
attention on Europe. Part of the
and sentenced to 6 months in prison.
in emergency economic aid to Pan-
power of the story is that it can be
Today, Myriam Arguello is president
ama and Nicaragua. We have a big
told in intensely personal terms, as
of Nicaragua's freely elected national
stake in this. This aid is critical. A
the story of the dissident playwright
assembly.
little over a week ago, I received a
who is now president or of the
These three stories underscore in
letter from President [Violeta]
electrician who came to symbolize his
personal terms the truly revolution-
Chamorro-just weeks into her term
people's hopes for freedom. Democ-
ary political change that has taken
in office-telling me that Nicaragua
racy's advance in Latin America has
place not just in Nicaragua but across
was bankrupt. And yet, for more
produced its share of heroes-and
the Americas, change that proves
than 2 months now, this emergency
today I will close with three from one
beyond doubt that the day of the
aid has been bogged down on Capitol
country alone, Latin America's
dictator is over and democracy's day
Hill. To give you an idea of the
newest democracy, Nicaragua.
has come.
magnitude of this problem, in March,
For 4 years, beginning in 1979,
For our part, we in the United
I requested $800 million for Panama
and Nicaragua, asking that this bill
the year the Sandinistas took power,
States must do all we can to help
Enrique Dreyfus was head of Nicara-
secure for all the Americas the free-
be finished April 5. It is now May 22,
gua's supreme council of private
dom, the peace, and prosperity we
and the funds for Panama and Nicara-
gua have been reduced by $80
enterprise-a private-sector group in
enjoy. Please keep up-more than
million-even though $1.4 billion in
many ways similar to this one. His
ever-your important work in
criticism of Sandinista rule put him
guaranteeing that democracy suc-
extra spending has been added.
on the Sandinista black list and
ceeds in this precious hemisphere of
Finally, it appears the Congress
landed him in prison. Today, with the
ours.
may act this week on this vital
measure. For the people of Nicara-
Sandinistas swept from power,
Published by the United States Department
gua and Panama democracy hangs in
Enrique Dreyfus is not just free from
of State
Bureau of Public Affairs
Office
persecution-he is Nicaragua's new
of Public Communication
Washington, DC
the balance. So let me say to the
foreign minister.
June 1990
Editor: Susan Holly
This
Congress: The fate of freedom rests
material is in the public domain and may be
In 1985, members of the Sandin-
reprinted without permission; citation of this
ista internal security force beat
source is appreciated.
Sofonias Cisneros for criticizing the
3
PA/PC, Mailing List
BULK RATE
United States Department of State
POSTAGE & FEES PAID
Washington, DC 20520-6810
US Department of State
Permit No. G-130
OFFICIAL BUSINESS
PENALTY FOR PRIVATE USE
Address Correction Requested
U
S
N
S
S
The Latin 'Techno-Yuppies'
you wanted to take part in the economic
debate then you had to know what you were
talking about." Starting in the late 1980s,
other Latin politicians realized they need-
Young and American-educated, they are shaking
ed skilled economists to negotiate with big
U.S. banks to work off the billion-dollar
up state-run economies across South America
debt loads that were dragging down their
economies. Bolivia's technocrats took the
boldest steps, devising an anti-inflation
hat comes to mind when you think
market economics to traditionally state-
plan and buying back about half of Boliv-
W
of Latin American leaders? A gen-
run countries. In Mexico, Brazil, Peru and
ia's then $700 million bank debt.
eration ago it would have been
Argentina, they have laid radical plans to
No country has embraced American-
right-wing dictators in medal-covered mili-
smash protective barriers and sell off many
trained technocrats more than Mexico, a
tary jackets, molding themselves in the
major industries that were owned and
country that once stashed such experts in
images of Benito Mussolini and Francisco
managed by the state. Their invasion
obscure bureaucratic corners. President
Franco. Or leftists who wore beards like
might almost be considered a kind of U.S.
Carlos Salinas de Gortari, 42, who holds
Che Guevara and quoted Castro and Lenin.
takeover of Latin America, though not in
three Harvard degrees, has stacked his gov-
These days, members of Latin America's
the way populists once feared. "Our U.S.
ernment with U.S. graduates. Among
governing elites are more likely to wear
education taught us that there was no such
them: trade minister Jaime Serra Puche
designer suits and to tap on personal com-
thing as a free lunch," says 42-year-old
and budget minister Ernesto Zedillo, both
puters. And instead of quoting wild-eyed
Marcos Fonseca, Brazil's national plan-
39-year-old Yalies, and 40-year-old finance
revolutionaries, they're uttering home-
ning secretary (Yale, '78).
minister Pedro Aspe, from MIT.
spun American sales tips. "You don't get a
The flow of U.S.-trained technocrats be-
New brotherhood? To the astonishment of a
second chance to make a first impression,"
gan in the mid-1970s, well before free-mar-
country accustomed to complacent bureau-
says Jorge Quiroga, Bolivia's 30-year-old
ket ideas swept Eastern Europe. Chilean
crats, Mexico's technocrats have pushed
under secretary of planning.
military dictator Augusto Pinochet re-
through radical changes. They have torn
Call them Latin America's "techno-Yup-
cruited a group of University of Chica-
down protective tariffs and sold off a series
pies." Many are around 40 years old or
go economists-the "Chicago Boys"-to
of nationalized enterprises. In Mexico City
younger and have studied economics at
rebuild Chile's economy. Others followed.
there's even a bumper sticker reflecting
prestigious U.S. schools like Harvard, MIT
Alejandro Jadresic, 34, a policy coordina-
their rise: LICENCIADO EN ECONOMIA-
and the University of Chicago. Returning
tor in Chile's new democratic government,
roughly, "Economist on Board."
home to key positions across the continent,
got an economics degree from Harvard in.
Critics of the new breed-mostly left-
they have moved aggressively to bring free-
1984. A Pinochet critic, Jadresic admits, "If
leaning politicians, intellectuals and
unionists-have harsher things to say.
Some compare the network of economists
to the old brotherhood of military dictators
Learning to Play
and their U.S. patrons. "This is the new
the Market
Pentagonism," snaps Porfirio Muñoz Ledo,
an opposition Mexican senator. While Lat-
in America's poor are giving the economic
A
cross Latin America, selling
experiments a chance, some resentment is
state firms and liber alizing
bubbling. At Argentine rallies, President
trade are the order of the day
Carlos Menem is getting booed because of
his free-market policies and U.S. ties. The
Mexico: The Salinas government has
occasional arrogance of the technocrats
sold off important state enterprises,
doesn't help matters. Says Muñoz Ledo:
such as a copper mine, torn down
"They don't accept dissent because their
tariffs and started collecting taxes.
formulas tell them they're always right. In
Argentina: Talks are underway for
the end, it's just another elite that believes
sale of the state-owned airline and
the rest of Mexico is incompetent."
phone company; the latter deal could
The question now is whether the new
retire $5 billion in foreign debt.
policies will work before the masses turn
Bolivia: The government is trying to
against them. That's far from clear. Peru,
lure foreign investors, offering stakes in
with 30 percent jobless, isn't likely to turn
such politically sensitive industries
around for several years. In Mexico the
as mining.
benefits of privatization haven't yet trick-
led down from the magnates buying state
Brazil: The government froze bank
companies. The techno-Yuppies acknowl-
accounts of more than $1,250 and is
edge they have only a couple of years to
selling a handful of steel plants.
keep the pendulum from swinging toward
Peru: President Alberto Fujimori has
leftism and government intervention. But
ended many subsidies and price con-
they insist they're preaching the right gos-
trols and vowed to cut import tariffs
pel. And with the decay of nationalization
Chile: The country has become a
and protectionist policies, their countries
MERCURIO
model of an export oriented economy,
have little choice but to listen.
Aggressive moves: Chile' Jadresic
selling copper, fish meal and fruit
PETER KATEL with TIM PADGETT in Mexico City,
MICHAEL KEPP in Rio de Janeiro,
LESLIE CRAWFORD in Santiago and bureau reports
58 NEWSWEEK NOVEMBER 12, 1990
Photo Copy Preservation
Sept. 4 / Adminstration of Ronald Reagan, 1981
Ms. Reynolds is a- recipient of America's
League. She resides in Alexandria, Va., and
to the family, coll
Outstanding Women in Business and Labor
was born June 26, 1927, in Pocatello, Idaho.
bassador Delamar
Award from the Women's Equity Action
In addition, th
personal message
[of France].
Announcement Concerning the U.S. Delegation to the United
States-Nigeria Bilateral Talks
September 4, 1981
Nomination
Patents and
The President has asked Vice President
areas of agriculture, energy, trade and in-
September 4,
George Bush to lead the U.S. delegation to
vestment, health, education, and science
the sixth round of U.S.-Nigeria bilateral eco-
and technology.
The President
nomic talks, September 8 and 9, in Wash-
In addition to presiding over the talks,
tion to nominate
ington, D.C. Nigerian Vice President Alex
the two Vice Presidents will have a private
Ekwueme will chair his country's delegation
meeting during Vice President Ekwueme's
Deputy Comm
Trademarks, De₁
to the annual consultations. The talks will
stay.
would succeed L
explore issues of mutual concern in the
Since 1945 Mr
in the patent di'
leum Co. He wa
ist in 1945-46,
Announcement of the Vice President's Foreign Travel
1946-50, senior
September 4, 1981
chief, in 1950-5
The President has asked Vice President
mation to reporters at his daily press brief-
George Bush to represent the United States
ing in Room 450 of the Old Executive
on an official visit to Brazil, Colombia, and
Office Building.]
Nomination
the Dominican Republic. The Vice Presi-
The purpose of the trip is to demonstrate
of Veterans
dent has accepted the invitation of the
the importance this administration places
Dominican Republic and will visit there on
September 4,
on our relationships with Latin America. In
October 11 and 12 and has accepted the
his visits to Brazil, Colombia, and the Domi-
invitation of President Turbay to visit Co-
The President
nican Republic, the Vice President will
lombia on October 13 and 14. The Vice
tion to nominat
have an opportunity to exchange views
President's trip will conclude with a visit to
be Deputy Adi
with the heads of state and other high-level
Brazil, at the invitation of the Brazilian
fairs.
officials in these countries. The trip is being
Government, on October 14, 15, and 16.
Mr. Hagel is
made at the invitation of the countries in-
commissioner g
[On the same day, Deputy Press Secretary
volved, and the times were worked out at a
Fair (Energy E
Larry M. Speakes read the following infor-
mutually convenient time to both countries.
ville, Tenn. In
Government Al
and Rubber C
1971-77 he wa
Statement by Deputy Press Secretary Speakes on the Assassination
U.S. Representa
of the French Ambassador to Lebanon
Nebr.).
Mr. Hagel sei
September 4, 1981
years, when he
The President was shocked and saddened
feels strongly that the violence and terror
by the news this morning that the French
in many areas of the world constitutes a
Ambassador to Lebanon was killed as a
grave danger to the fabric of society. He
result of an attack in Beirut. The President
would like to extend his deepest sympathies
756
Administration of Ronald Reagan, 1982 / May 12
he basis of our
dship. It is fit-
Nomination of Eleanor Thomas Elliott To Be a Member of the
lect upon our
National Advisory Council on Women's Educational Programs
ation and its
May 11, 1982
Reagan, Presi-
f America, do
The President today announced his inten-
tion in New York City since 1978. She also
of May 16
tion to nominate Eleanor Thomas Elliott to
serves as a director of the Celanese Corp.
of national ob-
be a member of the National Advisory
and of Catalyst, Inc., both in New York
the establish-
Council on Women's Educational Programs,
City. She is a trustee of Barnard College
between the
for a term expiring May 8, 1985. She would
and is director of the United Way of Great-
of the ties of
succeed John W. Fuller.
er New York.
peoples.
She has been serving as director of the
Mrs. Elliott graduated from Barnard Col-
Foundation for Child Development since
e hereunto set
lege (B.A., 1948). She is married and resides
1970. In addition, she has been a member
y, in the year
of the advisory board of the American
in New York City. She was born April 26,
ed and eighty-
1926.
Women's Economic Development Corpora-
of the United
hundred and
LD REAGAN
Message to the Congress Transmitting an Exchange of Diplomatic
Federal Regis-
Notes on Extension of the U.S.-U.S.S.R. Fishery Agreement
May 11, 1982
nation was re-
Press Secretary
To the Congress of the United States:
ments of Section 201(c) of the Act.
In accordance with the Fishery Conserva-
I urge that the Congress give favorable
consideration to this extension at an early
tion and Management Act of 1976 (Public
date. Several U.S. fishing interests have
Law 94-265; 16 USC 1801), I transmit here-
urged prompt consideration of this agree-
with an exchange of Diplomatic Notes, to-
National
ment, and I therefore recommend that the
gether with the present agreement, extend-
Congress consider issuance of a joint resolu-
ing the governing international fishery
tion to bring this agreement into force,
agreement between the United States and
before the agreement expires on July 1,
the Soviet Union, signed at Washington on
1982.
November 26, 1976, until July 1, 1983. The
ic Fleet, Nor-
RONALD REAGAN
exchange of notes together with the present
was commis-
agreement constitute a governing interna-
The White House,
in 1943 and
tional fishery agreement within the require-
May 11, 1982.
ice admiral in
lavy in 1978.
e Washington
ness adminis-
Remarks at the Welcoming Ceremony for President João Baptista
ited from the
married, has
de Oliveira Figueiredo of Brazil
lexandria, Va.
May 12, 1982
President Reagan. I am delighted today to
as the nation of the future. Well, the future
welcome President Figueiredo and Mrs.
is here. Brazil is increasingly looked to not
Figueiredo to Washington. Over our many
for its potential, but for its capabilities; not
years of friendship with Brazil, Mr. Presi-
for what it will accomplish, but for what it
dent, your country has often been described
is accomplishing.
611
May 12 / Administration of Ronald Reagan, 1982
We in the United States rejoice with the
no surprise to us. We share a similar pio-
world of today.
people of Brazil for the progress that you
neer heritage. Our two peoples are also
information and
have made economically, politically, and so-
similar in that they represent a meltingpot
ments should be
cially, and look forward to expanding on the
of cultures and ethnic backgrounds. But the
Under the pr
mature relationship we've developed. The
most significant comparison remains the re-
I regard the op
ties that bind us are firm, with mutual re-
spect for individual enterprise and diversity
discussion with
spect and trust reinforced by time and
that has developed in our two countries.
ticularly positiv
shared values.
The Amazon River is, to many, synony-
demonstrate re
Our friendship, Mr. President, goes back
mous with Brazil. Its grandeur, enormity,
valuable diplon
to the early days of Brazilian independence,
when the United States was the first coun-
and power stagger the imagination. But so
ington willing t
too does Brazil. Let us pledge that we shall
the problems t
try to recognize your sovereignty. Brazil
was the first South American nation to have
always remember, and never take for grant-
political and ec
ed, the good will between us.
listen and to SI
an Ambassador in Washington.
President Figueiredo, it has been 11 years
We in Brazi
The American people will not forget,
President Figueiredo, that in both the First
since a Brazilian President honored the
creative approa
United States with a state visit. This is too
terests and val
and Second World Wars, Brazil joined with
us to confront the threat to freedom. Since
long a period for nations which have so
your great cou
the war years, our two countries have col-
much to contribute to one another. Let us
of our relation
laborated on many fronts to meet diverse
confirm that the personal bonds we develop
favorable resu
through this visit will reinforce the friend-
their own uni
challenges to the security and well-being of
ship between our peoples.
distinct roles i
our peoples.
Brazil is an independent force for moder-
Vice President Bush visited your country
gional politics,
ation and balance in this hemisphere. And
and consulted with your government in
ences of opini
while our two countries have had disagree-
October. He reported to me the construc-
deavor to smo
ments, which is only natural and to be ex-
tive and amicable approach with which he
change of ide
pected among friends, we have never lost
was met. So today, I look forward to our
Mr. Presider
that mutual respect and admiration so char-
discussion. I have much to learn from you
Brazil we are
acteristic of our relationship.
and seek your counsel on matters of mutual
nificant chapt
Your leadership, Mr. President, is built
concern.
during which
upon the qualities of which I've just spoken.
In your annual message to the Brazilian
being consoli
During a state visit to Colombia last year,
Congress last year, you said of Brazil: "We
standpoint, W
you explained in extreme situations, politi-
seek to understand and to be understood."
proach. Our
cal wisdom requires utmost levels of toler-
Well, let this be the basis of our talks today.
Brazil is both
ance. We learned that tolerance and moder-
Two old friends in a period of change, hon-
country. It is
ation don't bring bitter fruits and are un-
estly and with sincerity, seeking good will
with a stror
contestable demonstrations of fidelity to the
and understanding.
others. Brazili
true ideal of democracy. This and other
And with that said, President Figueiredo,
reflect this W
statements you've made speak well of your
I welcome you to the United States.
In a world
ideals and those of your country.
President Figueiredo. Mr. President,
macy must c
Mr. President, the motto of Brazil is
thank you for your words of welcome.
tween states.
"Order and Progress." And during these
For over 150 years, Brazil and the United
conflict, agre
trying times, your country has proven that
States have maintained balanced relations.
to be found.
it takes these words seriously. Especially
Ours is a heritage of mutual esteem, under-
hard hit by rising energy prices, your gov-
standing, and respect. My visit to this coun-
ernment made an impressive commitment
try is, therefore, only a natural develop-
to do what was necessary to protect your
ment of our bilateral relations. Our rela-
people's standard of living and the Brazilian
tions with the United States play an impor-
way of life. As a result of this commitment,
tant role in the framework of our foreign
your country is now a leader in the devel-
policy.
opment of alternative energy resources, es-
Brazil's progress is predicated upon the
pecially the use of alcohol as a fuel and the
diversification and enhancement of its in-
harnessing of hydroelectric energy.
ternational presence. It is a Brazilian goal to
That Brazil overcomes such obstacles is
better adapt our bilateral relations to the
612
Administration of Ronald Reagan, 1982 / May 12
1 similar pio-
world of today. To this end, the exchange of.
some impasses still remain, such as the issue
ples are also
information and ideas between our govern-
of nuclear disarmament, of vital importance
a meltingpot
ments should be intensified.
for the destiny of mankind. The North-
unds. But the
Under the present difficult circumstances,
South negotiations do not progress. Forging
mains the re-
I regard the opportunity of having an open
links of cooperation among peoples has
and diversity
discussion with you, Mr. President, as par-
never been so vital and so urgent.
vo countries.
ticularly positive. The harshest of realities
Americans and Brazilians have built a tra-
any, synony-
demonstrate repeatedly that dialog is an in-
dition of friendship throughout history. In
ir, enormity,
valuable diplomatic tool. I arrive in Wash-
times of crisis, we must resort to mutual
ation. But so
ington willing to examine together with you
inspiration and counsel. The purpose of Bra-
that we shall
the problems that concern us both in the
zilian diplomacy is, in essence, to strength-
ke for grant-
political and economic fields. I'm willing to
en the ties of mutual confidence among the
listen and to speak frankly and objectively.
countries of this continent so that the spirit
een 11 years
We in Brazil wish to take a lasting and
of conciliation and peace may prosper.
nonored the
creative approach to the commonality of in-
These are the foundations for my dialog
This is too
terests and values existing between us and
with you, Your Excellency. Our govern-
ich have so
your great country. The breadth and range
ments are accustomed to mutual under-
ther. Let us
of our relations encourage us to anticipate
standing. Such is our tradition. May such be
we develop
favorable results. As our countries have
our future.
the friend-
their own unique characteristics and play
distinct roles in international as well as re-
Note: President Reagan spoke at 10:13 a.m.
our country
gional politics, it is only natural that differ-
on the South Lawn of the White House,
ternment in
ences of opinion should exist. We will en-
where President Figueiredo was given a
he construc-
deavor to smooth them out through the ex-
formal welcome with full military honors.
th which he
change of ideas, views, and clarifications.
President Figueiredo spoke in Portuguese,
ward to our
Mr. President, it is a known fact that in
and his remarks were translated by an in-
n from you
Brazil we are going through a specially sig-
terpreter.
rs of mutual
nificant chapter of our political history
Following the ceremony, the two Presi-
during which democratic institutions are
dents met privately in the Oval Office.
he Brazilian
being consolidated. From a diplomatic
They were then joined by the Vice Presi-
Brazil: "We.
standpoint, we adopt a universalistic ap-
dent, Secretary of State Alexander M. Haig,
inderstood."
proach. Our foreign policy is diversified.
Jr., Brazilian Foreign Minister Ramiro
talks today.
Brazil is both a Western and a Third World
Elysio Saraiva Guerreiro, and Brig. Gen.
hange, hon-
country. It is a Latin American country
Danilo Venturini, Chief of the Military
g good will
with a strong African heritage, among
Household of the Presidency. The Presi-
others. Brazilian foreign policy endeavors to
dents, together with their delegations, then
Figueiredo,
reflect this wealth of historical experience.
met in the Cabinet Room.
tes.
In a world where crises multiply, diplo-
After the bilateral meetings had been
President,
macy must continue to build bridges be-
completed, President Reagan and President
come.
tween states. Even in times of despair and
Figueiredo met with members of the Brazil-
the United
conflict, agreement, however difficult, has
U.S. Business Council in the Roosevelt
d relations.
to be found. In the international sphere,
Room.
em, under-
) this coun-
il develop-
Our rela-
an impor-
our foreign
upon the
of its in-
lian goal to
ons to the
613
Dwight D. Eisenhower, 1954
34°
ckground, the
NOTE: The President spoke in the Cab-
with the Creed of the U.S. Junior Cham-
re of
inet Room at 9:15 a.m., following the
ber of Commerce.
presentation to him of a plaque inscribed
the legislative
2 Con-
Country Republic of the conduct the the
339
I
Statement by the President on the Death
of Paris
of
of Governor William S. Beardsley of Iowa.
>rth Atlantic
November 22, 1954
ould greatly
t aggression.
I WAS SHOCKED to hear of the tragic accident which took the life of
resident dis-
Governor William S. Beardsley of the State of Iowa. The people of
and
Iowa have lost a devoted public servant whom they elected three times
I armed
as Chief Executive of their State. Mrs. Eisenhower and I extend to
Mrs. Beardsley our deep sympathy in the great personal loss she has
hereafter on
sustained.
У
of the
340
Message to the Conference of Ministers of
:
and
Finance and Economy Meeting in Rio de Janeiro.
November 22, 1954
herce.
I AM VERY PLEASED to send greetings and best wishes to the Meeting
of Ministers of Finance and Economy of the American family of nations,
er of your
convened in Rio de Janeiro, the capital of our great sister nation, Brazil.
I am happy to send this message through our Secretary of the Treasury,
y to know
Mr. George M. Humphrey who, as Chairman of the United States
sinessmen,
Delegation, speaks for our nation and will authoritatively present our
policies.
any one
I am confident that this Conference will advance still further the
that their
unique relationships which have developed among the peoples and nations
ically-in
of this Hemisphere. As those relationships evolved and grew, the people
of the United States learned to call their own attitude toward their sister
t we just
nations the policy of the Good Neighbor. Today, the bonds which
American
unite us as sovereign equals who are working side by side for the better-
ment of all of us-nations and citizens-have elevated this neighborly
relationship to one of genuine partnership.
1059
9
197
Public Papers of the Presidents
I97
9
Letter to President Kubitschek of Brazil on
198
У
The
the Occasion of Secretary Dulles' Visit.
August 6, I9
August 5, 1958
THE PRESIDENT. I
[Released August 5, 1958. Dated August 2, 1958]
Q. Marvin L.
Dear Mr. President:
have any plans to
I am glad that Secretary Dulles is having this opportunity to visit
United Nations Gt
Brazil and consult with you on problems of mutual interest. Close polit-
THE PRESIDENT
ical, economic and military relations between Brazil and the United
intention on the p:
States have been our historic tradition. I have no doubt that the friendly
But, as you know
cooperation in these fields, which has contributed so materially to the
so chooses, by the
well-being, prosperity and security of both countries, will be maintained
or desirable, why, ]
and intensified.
As of this mon
I have asked Secretary Dulles to assure you of my continuing personal
particular intentio
interest in the constructive proposals you have recently made to explore,
Q. Peter Lisago
with the other American Republics, means for strengthening and further
us what you would
unifying the inter-American community. Your views, given at first hand
Whether you wou.
to Secretary Dulles, will, I am sure, contribute notably to the definition
or whether you W
and understanding of existing problems, as have those of other Chiefs of
Middle East?
State obtained by Vice President Nixon in South America and Dr.
THE PRESIDENT
Milton Eisenhower in Central America.
have sent, I think
It is particularly gratifying to me that Secretary Dulles will be visiting
Mid-East with the
with you the projected new capital, Brasilia. This project, fulfilling a
and to confer abou
long-standing aspiration of your countrymen, eloquently signifies the
I think you could
vigor and imagination of the Brazilian people, now on the threshold of
country of Leban
even greater conquest of the vast interior of their happily endowed
wider than are to
country.
impossible. You 1
With assurance of my highest consideration, and with my best wishes
Q. David P. Se
for the continued well-being and prosperity of the great Brazilian nation,
say the development
Sincerely,
bility of any full dr
THE PRESIDENT.
DWIGHT D. EISENHOWER
three paragraphs, 1
His Excellency
return to the subje
Dr. Juscelino Kubitschek de Oliveira
United States has b
President of the United States of Brazil
If we see that t
the Summit meetir
the
Harry S. Truman 1948
[198] Sept. 20
Public Papers of the Presidents
198 Rear Platform and Other Informal Remarks in Colorado.
A great many of them,
of them, did not exercise t
September 20, 1948
for which our forefathers
for in other nations, that is what we are
to 1781, and for which t
[1.] DENVER, COLORADO (Inter-American
working for in the Pan American confer-
ternecine war from 1861 t
Conference on Conservation of Renewable
ence, and that is what we are working for
free ballot. They did not
Resources, State Capitol, 11:17 a.m.)
right here in this hemispheric conservation
ilege, and look what th
Mr. Secretary, Mr. Chairman, and mem-
conference.
what they got!
bers of this historic conference:
I want to thank you most sincerely for your
They got a change all
It certainly is a very great pleasure to me
kindness in asking me to come and meet
the signs all over th
to have this opportunity to address the first
with you this morning. I wish I could stay
Enough?" Well, they
hemispheric conference on conservation.
longer, and I wish I could hear some of the
they had had enough and
That is a step which will make history.
speeches and the lectures that will be given
too much.
That is a step that I hope will thoroughly
here. I am vitally interested, but I am here
It is your civic duty, D
cement the friendship between the 21 West-
for another purpose, and if you are interested
feel, to go to the polls on
ern Hemisphere Republics.
in American politics, I will tell you all about
you have been properly
As you know, I have been exceedingly in-
it right here on the lawn.
registration date, and vot
terested in the friendship and the good
Thank you.
because you are the G
neighbor policy of the United States of
United States, the only F
America. It was my privilege to officially
tory of the world where
visit Mexico and Brazil and Canada, and
[2.] DENVER, 06# COLORADO (Address, I2 noon,
Government. You elect
officially to receive the President of Chile,
see Item 199)
partisan mayors and CO
the President of Colombia, and several other
judges; and partisan con
Western Hemisphere Presidents, including
tors, and partisan Preside
[3.] DENVER, COLORADO (Luncheon given
the President of Mexico. He paid an official
dents. In that way, you a
by the Colorado Truman-Barkley Club,
return visit to Washington to me for the one
Now, I want you to 1
Shirley-Savoy Hotel, I:55 p.m.)
I gave him.
and everybody you know
If we can just continue that sort of feeling,
Mr. Chairman, Mr. Mayor, Senator John-
lican, a Mugwump, or a
there isn't any question of doubt in my mind
son:
out and do his duty civi
that our natural resources will meet the
I can't tell you how very much my family
of November.
population's demands, no matter what that
and I are your debt for the wonderful
Now this is a wonderf
may be. There are resources in this West-
welcome you have given us here today. We
springing up all over
ern Hemisphere that have never been
had not anticipated the turnout that you gave
You know, back in Apr
touched. If those resources can be properly
us. I can't tell you how very much I ap-
had your President out in
conserved, if we can go through with a pro-
preciate it. It goes to show that the people
so far as politics were C
gram such as you are working with here,
can't very well be fooled. They want to
May we heard people de
there isn't any question in my mind but what
know facts, and when the people know the
be best for the country
eventually we will have peace in the world
facts, the Government of the United States
sons, many of whom you
and there will be enough of the good things
is in safe hands.
be named to head the
in life for every citizen of the world to enjoy
You know, in 1946 the people were tired.
And then, along in July
a good living, plenty to eat, and plenty to
They had been through a long war. They
cans had had a convent
wear, and a pleasant place to stay and call it
had to be regimented, their sons and daugh-
a platform-which, in
his own.
ters had been in the fighting forces and they
most hypocritical docus
That, my friends, is what we are working
felt that they would like to have some relief.
put into writing-peop
stand that for 3 long
510
August 2, 1990
BRAZIL -- ENVIRONMENT -- US PROGRAMS
Contact: Jim Hester AID 647-8093
AID has very progressive programs in the works.
$2 million has been allocated for an AID environmental program
in Brazil.
--most of the money will go to global climate change
issues.
--$1.6 million will go to activities toward a policy
dialogue and the development of information
services on deforestation in the Amazon region.
[will fax info today.]
There are three points of the Amazon under study:
the mouth
the middle (Manaus the heart of the Amazon
POTUS is going there)
the upper reaches
--$400 million will go to start a new Center for Energy
Efficiency. This is an integral part of
addressing climate change. Brazil's Secretary
for Science and Technology, Goldumberg, has
been lobbying heavily for this.
Also, they feel it is important for the US to speak as one
voice about Brazil's environment. For this reason,
AID has brought together people from the EPA and the
forest service. The latter two are not funded right
now, but they will be soon and their staffs will help
to manage the programs in Brazil and establish better
coordination.
EPA: Edwin Johnson
Director of Int'l Cooperation
382-4025
Forest Service:
David Harcharik
Dir. Int'l Forest Svc. Ofc.
453-9575
Mark Lore - Brazil Desk Officer, state- 647-9407
on 8/1, State sent a cable to USEmbossy Brasilia. It proposes to GOB that POTUS & Collor
make a joint declaration on the environment during the visit. The cable, unclassified,
outlines the joint steps & interests of the usg $60B already underway. He will fax this
cable to US for our own FYI about our similiar interests.
Salinas story- of stars.
Then EPA Mox. equiv, working progressivele.
Photo Copy Preservation
Tuesday
November 27, 1990
#
THE DAILY BRIEFING ON AMERICAN POLITICS ---
Updated Each Morning At 11:30
(c) The American Political Network, Inc.
282 North Washington Street, Falls Church, VA (703) 237-5130
REVIEWS HIT DECONSEENOEVIL
SPOTLIGHT
With Cranston absent, AZ Dem
becomes target: "Offensive
SAM NUNN IN NEW HAMPSHIRE
at times hysterical
self-
righteous. " Some see "Senate
"Nunn's people already
roller derby. " (#2)
have been quietly making
K-5 HEADLINES BACK HOME (#1)
telephone calls up here to
find out what people think
RACIAL MARRIAGES AND QUARRELS
of him, and it looks as if
DALLAS: Mayor charges foes of
Nunn will be the featured
12/8 redistricting referendum
speaker this coming
"play on racial fears. " (#25)
February at the state
CA SENATE: Tapping Vasquez may
party's major fund-raiser."
lure Hispanics to GOP. (#12)
PHILLY: Poll shows Rizzo weak,
So says a veteran NH Dem.
blacks uncommitted. (#10)
Today Nunn begins chairing
SAN ANTONIO: Today's fourth
Gulf hearings, networks in
entry seen "likely to further
tow, as Cuomo opposes force
fragment [anglo] vote. " (#11)
and Kerrey takes the stage
SC: GOP-black redistricting
on CBS' "America Tonight"
alliance could force '92 Dem
Gulf panel Thursday.
Tallon-Spratt battle. (#7)
TX: Hispanics plot districting
Wilder is expected back
strategy; ties in peril. (#8)
for his second NH visit in
VA: Paper rips GOP "temporary
January to help raise $ for
marriage" with blacks. (#9)
the NH Young Democrats.
1992 SENATE RACE JOCKEYING
Meanwhile, the Bush '92
CA: Morgan withdraws. (#12)
team is forming: Teeter at
NY: As election season looms,
the helm, Bennett and Black
an Ill Wind blows. (#15)
aboard, and Baker absent.
IN: Clear path for Hill. (#14)
See #5 and #4.
IL: GOP woes finding foe (#13)
QUOTE OF THE DAY
"The special interests that contribute to a successful campaign
also expect consideration. All too often they get it.' "
-- US Rep. Don Riegle, in his 1972 published diary "O Congress,"
as cited by Hugh McDiarmid, DETROIT FREE PRESS 11/27, #1
HOTLINE/DATABASE INDEX
FOCUS
KEATING 5: The headlines back home. (#1)
KEATING 5: Early reviews most harsh on DeConseenoevil. (#2)
GOP KNIFE FIGHTS: For control of offices, policy, agenda. (#3)
GOP '92: Campaign gears up; sizing up key players, issues. (#4)
DEMS '92: Nunn aides check out NH; February visit expected. (#5)
REDISTRICTING
IA: DMR's Yepsen sees newly-elected Nussle as fall-guy. (#6)
SC: Blacks push for creation of a black-majority district. (#7)
TX: Hispanic groups putting together strategy. (#8)
VA: Momentum building for blacks/GOP coalition. (#9)
CAMPAIGNS '91
PHILADELPHIA MAYOR: Poll shows Rendell leading Dems; Castille
strong while Rizzo's showing is "surprisingly weak." (#10)
SAN ANTONIO MAYOR: Getting mighty crowded. (#11)
CAMPAIGNS '92
CA SEN: St. Sen. Morgan takes herself out of the running. (#12)
IL SEN: GOP's "tough task" finding Dixon foe. (#13)
IN SEN: Congressmen said to give green light to Hill. (#14)
NY SEN: D'Amato's brother smells ill wind. (#15)
WV GOV: Talk about Caperton gets personal. (#16)
HOTSPOTS
CA: Brown fends off Democratic insurgence. (#17)
IA: Tauke, take two. (#18)
KY: Senate race and voter dissatisfaction. (#19)
MA: The leaders that govern together, ... (#20)
NE: Nelson to order study of tax fairness. (#21)
NJ: Florio's executive powers for auto insurance. (#22)
PA: Lawless flips, wins, then flops. (#23)
SC: Lowest voter registration in U.S. (#24)
TX: 14-1 -- Paper endorses it, mayor defends it. (#25)
TV MONITOR (#26)
K-5: Glenn & McCain
...
Gulf
...
turning Japanese.
???? OVERLOOKED ????
"This election is not about ideology. It's about competence."
-- Michael Dukakis, Democratic convention, 7/21/88
"I think war is justified. The question's whether it's wise."
-- Sam Nunn, NBC "Today," 11/27/90
FOCUS
*1 KEATING FIVE: THE HEADLINES BACK HOME
ARIZONA: Banner front-page headline in yesterday
afternoon's PHOENIX GAZETTE: "Aide says she warned DeConcini" --
reporting on yesterday's testimony by DeConcini "key banking
aide" Laurie Sedlmayr telling him a meeting with FHLBB's Gray
about Keating would be "a mistake
I didn't think it was a
good idea and would be later misinterpreted by the press"
(11/26). ALSO: The ARIZONA REPUBLIC reports that creditors of
Keating's ACC have voted to accept a 20-cents-on-the-dollar deal
which Keating, his family and top ACC ex-execs have fought
"because they would be pushed to the end of the creditors line,
making it unlikely they would receive any money. " The last
hurdle for the proposal is a court hearing Friday to consider the
voting and whether to give the proposal a final OK (11/25)
MICHIGAN: This a.m.'s LANSING STATE JOURNAL headline: "Aide
links Riegle to Keating," referring to Sedlmayr as the "second
aide to back Bennett's assertion that Riegle was more involved
than he admitted in the April 2 meeting with Gray
Under
cross-examination by Riegle attorney Thomas Green, Sedlmayr said
'I was being flip' when she wrote that the meetings were the
brainchild of Riegle" (Larry Margasak, AP, LANSING STATE JOURNAL
11/27). DETROIT FREE PRESS' Hugh McDiarmid reminds Riegle of
these words from his book "O Congress," a diary of his early
years in Congress, which he wrote 18 years ago with Trevor
Armbrister: "The special interests that contribute to a
successful campaign also expect consideration. All too often
they get it" (DETROIT FREE PRESS, 11/27).
CALIFORNIA: Unlike most of the national press, the SAN
FRANCISCO CHRONICLE focussed much of its coverage of Edwin Gray's
opening hearing statement yesterday on the internal battles over
admitting it. Committee Vice-Chair Rudman (R-NH), "his voice
rising and his face reddening tried to prevent Gray from
delivering his opening statement, preferring to go directly to
questioning. And after the statement was read, "when the
television cameras had gone dark, Bennett and attorneys for the
five accused senators got into a shouting match over Gray's
remarks.' DeConcini lawyer Hamilton complained that the defense
was not given advance copies and accused Bennett of unfair
practices. Bennett: "If you want to get down in the gutter,
I'll get down in the gutter with you" (Leonard Curry, 11/27).
Yesterday's CHRONICLE said sources had told it that Cranston
"worked anonymously to block a crucial 1986 savings and loan
bailout bill that included a strict regulation opposed by
financier Charles Keating" (George Williamson, 11/26). Cartoonist
Conrad sees a Senate office door with the title: "United States
Senator Charlie Keating of Arizona (2), California, Ohio,
Michigan" (L.A. TIMES 11/26).
OHIO: In Sunday's CLEVELAND PLAIN DEALER, Tom Diemer's
"Washington Notebook" summed up Sen. Glenn's problem: "Once
Glenn puts the embarrassing 'Keating Five' affair behind him, he
will have a way to go in repairing his own credibility
Why,
after learning at a 1987 meeting with federal regulators that
2
Keating's S&L faced criminal charges, did he set up a meeting for
the wheeler-dealer with Wright -- and then forget about it?
In fairness to Sen: Glenn, it appears
Bennett buys his
explanation that the Jim Wright luncheon was insignificant"
(11/25). The TOLEDO BLADE adds a new possible GOP opponent to
Glenn in 1992: "Ohio Supreme Court Justice Andy Douglas, a
former Toledo city councilman. Mr. Douglas would have to resign
his seat before he could run for the Senate." Other GOP
possibles cited were Sec/state-elect Bob Taft and LG-elect
Michael DeWine. The story said that while Glenn probably will be
re-nominated, "political analysts do not discount" a possible Dem
primary challenge from outgoing Dem Gov. Celeste, defeated Dem
Sec/State Brown, or Metzenbaum son-in-law Joel Hyatt (Jack Torry,
BLADE, 11/25).
*2 KEATING FIVE: EARLY REVIEWS MOST HARSH ON DECONSEENOEVIL
In an interview in today's USA TODAY, Sen. Dennis DeConcini
(D-AZ) agrees that with Cranston's decision not to run "the press
has backed off" the Californian and made him the leading figure
in the Keating Five case. He cited other constituent services
for AZ banks and employers -- and said that "six, eight, nine"
other Senators had told him they agreed the hearings are "a raw
deal" (11/27). The national press reviews of the first week of
the hearings seemed to single out DeConcini for the toughest
reviews. Balitmore SUN's Dan Fesperman: "The first four days
often made the cynical viewpoint even more alluring. How else to
react when Senator Dennis DeConcini begins his defense by
shouting, waving his arms and spending more than two hours saying
that it is his accusers, not the five senators, who have sinned?"
(11/25). Louisville COURIER-JOURNAL editorial: "Dennis
DeConcini
evidently believes that the best defense is a good
offense. At any rate, the Arizona Democrat's performance Monday
was certainly offensive" (11/21). Columnist HOBART ROWAN: "In a
combative and at times hysterical response, Deconcini seemed
confused about the proper role of a U.S. senator" (W. POST
11/22). Columnist SANDY GRADY: "DeConcini, defending his antics
for Keating, shouted self-righteously, 'Somebody has to stand up
for constituents.' What about 'constituents' who lost their life
savings in Keating's looted Lincoln S&L? What of 'constituents'
who must pay taxes to bail out gutted S&Ls?" (MIAMI HERALD,
11/23). Columnist CAL THOMAS: "Michael Milken defended himself
with the excuse that he was guilty only of being overzealous in
providing 'constituent services' to his junk-bond customers. He
was sentenced to 10 years in prison" (WASHINGTON TIMES 11/27).
GENERAL REVIEWS: "So far, the picture isn't pretty, " says
the WALL STREET JOURNAL's Jill Abramson of the televised hearings
(11/27). She cites three areas noted by others as well: (1)
"Money talks." The hearings are leading to many comments on or
calls for campaign finance reform. EXAMPLE: "Most importantly,
Congress can develop a system for public financing of campaigns.
Right now, we have a Congress that appears to be for sale" (USA
TODAY, 11/27). EXAMPLE: Tribune cartoonist O'Brian's picture of
Ethics Committee in front of giant bags of PAC $, with Bennett
saying " and then Keating essentially bribed the Senators with
huge amounts of cash
I ask that the Committee not openly
guffaw, Mr. Chairman
(HOUSTON CHRONICLE, 11/21). (2) "Staff
power.' Abramson points to Cranston's "warning" that he wasn't
the only Senator with fund-raisers acting as staff -- suggesting
that they were all vulnerable. And she cites Riegle's Kevin
Gottlieb and Glenn's James Grogan and former staffers who will
play a very big role in the hearings (W.S.J., 11/27). After the
testimony of McCain and DeConcini staffers, Mary McGrory wonders
whether one result will by "that senators will in the future heed
the good counsel of the women they hire to warn them about rocks
ahead" (W. POST, 11/27). (3) "The Myth of Senatorial Courtesy."
Abramson says "the only members of the five who seem to be on
amicable terms" are McCain and Glenn (WSJ 11/27). They even
appeared together on "CBS This Morning" today to answer questions
about Iraq, as well as the hearings (See today's TV MONITOR,
#26). Wm. Hershey in the AKRON BEACON JOURNAL calls it "Senate
roller derby" with a McCain "elbow, right at Dennis DeConcini's
integrity" -- a DeConcini "body smack into McCain's memory" --
Riegle "likes to pass the blame
trying to hand some off" to
DeConcini and Glenn -- "Glenn's skating all by himself" --
Cranston "doesn't like the referee" (11/26).
*3 GOP KNIFE FIGHTS
NEW SKIRMISH: Rep. Carl Pursell (R-MI) yesterday announced
he is challenging House Republican Caucus chair, Rep. Jerry Lewis
(R-CA), for his job next week. The race "is not expected to get
quite as nasty -- or as potentially destructive for the
Republican party itself -- as the ones that have been raging" for
NRCC chair "and for ideological control of the party" (Ralph
Hallow, WASH. TIMES) Pursell is "billing himself as an anti-tax
conservative" against Lewis as the Californian "stirred
discontent among anti-tax colleagues when he gave speaking
priority to White House supporters in the GOP conference during
the bloody budget battles that raged until last month.
Pursell, meanwhile, endeared himself to many anti-tax GOP
colleagues when he tangled with
...
John Sununu during the same
budget and tax-increase brawls" (11/27).
NRCC CHALLENGE:- Rep. Don Sundquist (R-TN) "has White House
backing" in his battle against 15-year NRCC chair, Rep. Guy
Vander Jagt (R-MI) next week. The fight is being waged over
NRCC co-chair Ed Rollins' tenure at the committee -- Rollins
"angered" the White House with his famous memo instructing
candidates to run from the administration's budget deal -- and
the questions over NRCC administration and fund raising.
Sundquist "has said he will probably drop" Rollins while Vander
Jagt promises to keep him. Sundquist has also raised specific
questions about NRCC fund-raiser Wyatt Stewart. Vander Jagt said
yesterday that Stewart "has proved a splendid fund-raiser,"
adding, "The innuendo and rumors (of conflict of interest or
worse) were very tragic to the 1.7 million contributors we built
up over 15 years" (Hallow, W. TIMES, 11/27).
ANOTHER BLADE AIMED AT DARMAN: House Min. Whip Newt
Gingrich (R-GA), on last night's "McLaughlin," reacted to Budget
Director Richard Darman's recent speech which attacked White
House domestic policy adviser James Pinkerton, among others.
Gingrich: "Darman is a very, very, bright man who has
accumulated probably as much empowerment as anybody in
Washington.
I felt very sorry for Mr. Darman. I think it was
a speech of enormous frustration.
He lives in the world of
Georgetown centers of fancy. For a man as bright as he, it was
an unbelievable defensive speech
He's not a man who engages
in the passions of how you move a nation. I think that speech
was a fundamental mistake, and if he sticks by that speech, I
don't see how he can make a fundamental step towards solving the
problems of this nation" (CNBC, 11/26). He added that Darman
"makes decisions he hopes will win approval of 'the New York
Times editorial board'" (WASH. TIMES, 11/27)
WITH FRIENDS LIKE THESE: In an op-ed, ex-Nixon and Ford
aide Benjamin Stein writes the GOP "is in an identity crisis.
The question is: Does the party stand for anything except the
wind of the moment and cradle-to-grave coddling of the rich?
Sadly, the days when the G.O.P. stood for responsible government
and protection of public finances are long gone
Reagan openly
and cheerfully said he would tax all future generations far more
heavily than the 1980s taxpayer and impose upon them the burden
of paying off his largesse to the electorate. This was, by any
known standard, the exact opposite of responsibility, and yet it
became Republican gospel." RNC chair-designate William Bennett
"must think about what the nation truly needs and what the G.O.P.
must become to meet those needs. or, he can go to lavish parties
and dispense patronage as the chairman of a party that used to
mean something but has come to mean wine and roses to its
friends, and a hard, cold pavement to those outside the
elephant's tent" (N.Y. TIMES, 11/27).
*4 BUSH '92 CAMPAIGN GEARS UP; SIZING UP KEY PLAYERS AND ISSUES
BUSH TEAM: Germond & Witcover say "early indications" are
that pollster Bob Teeter will be "the main strategist" of the '92
Bush campaign team. Nixon aide Fred Malek and DOT Sec. Sam
Skinner are "being mentioned" as candidates for running the "day-
to-day operations." Sununu aide Ed Rogers "appears slated" for
the job of "implementing political decisions made by Teeter,
Sununu and other strategists." The "possible appointment of
Malek as the top inside man risks noisy criticism from the news
media and the American Jewish community" for preparing "a list of
Jewish employees at the Bureau of Labor Statistics after Nixon
had complained that a 'Jewish cabal' there was trying to
undermine his record on
the economy." Sec/State James Baker
is "absent from this lineup" as "he certainly isn't going to shed
his striped pants now for what he has always seemed to consider a
dirty-fingernails job" (11/21) "Bush may still pass over Malek"
for Skinner, and a White House official said "I would be
absolutely stunned if the president had agreed to any of this
yet.' " The "money-raising job is expected to go to Commerce
Secretary Robert Mosbacher," and incoming GOP chair William
Bennett "has reportedly been assured of a seat at the planning
table" (John Mashek, BOSTON GLOBE, 11/22).
AILES OR ROGICH? "Sources" said Roger Ailes will get the
media advertising job (Mashek, GLOBE, 11/22) but Germond &
Witcover cite "reports that Sig Rogich, the Nevadan who now
serves as the White House image-shaper, would like that job.'
RNC spokesperson Charles Black is "expected to work with Teeter
on strategy, as will Atwater as his health permits" (11/21).
THE ECONOMY: White House chief economic advisor Michael
Boskin said Sunday "the economy will rebound from its current
slowdown by the middle of next year -- if oil prices decline,"
but he noted that a decline in oil prices depends on "resolution"
of the Gulf crisis (REUTERS/L.A. TIMES, 11/26). Economist Paul
Krugman: "Unless there is a spectacular policy error, Bush is
safe from a Dukakis-style blowout -- and the country, while not
recession-proof, is not in danger of a Massachusetts-level day of
reckoning." The "U.S. economy is much larger and more
diversified than that of Massachusetts. Bad luck for one region
is likely to be matched by good luck for another.
But much
more important, Bush has a guardian angel that Dukakis did not:
The Federal Reserve Board" (L.A. TIMES, 11/25).
MIDDLE CLASS: "The economic slide of the 1990's is hitting
middle-class America after a decade in which it ran harder to
stay in place. " Dems "look at the numbers and see a ripening
opportunity. Economist Dick Michel: "It seems to have given
the Democrats a unifying theme, and it's consistent with the
constituency that they are trying to regroup. Rep. Lee Hamilton
(D-IN) "I am doubtful that the Democratic party could win the
[1992 presidential] election on the tax-the-rich banner. " HUD
senior official John Weicher: "Attempts to raise the issue of
fairness in the last two presidential elections did not
accomplish much, as far as I can see" (PHILA. INQUIRER, 11/25).
PERSIAN GULF REAX: Germond & Witcover cite polls showing
"Americans favor a more patient policy then has been implied by
the huge military buildup Bush has ordered" and say his declining
favorability numbers "make it clear his time to demonstrate" his
"ability as a national leader" is "running out" (Balto. EVENING
SUN, 11/26). BOSTON GLOBE's David Nyhan says Bush has yet to
"talk turkey with the American public on why we're up to our
armpits in alligators in the Gulf. Aside to the Prez: Chew less
turkey, talk more turkey." Adds Nyhan, "does the White House
draw any kind of conclusions about the forced resignation of the
only European leader whose bellicose rhetoric matched ours?
Thatcher was the real thing. Reagan too. Bush, patently, is
not. Nowhere was this contrast more starkly drawn then on the
day Bush roamed the desert in shirtsleeve, campaigning on TV to
stave off political erosion back home" (11/25).
RE-ELECTION EXPERT: Min. Whip Newt Gingrich: "Barring a
depression, George Bush will be renominated with ease.
I
don't know if his popularity is plummeting at all," but "76% is
better than 51%. I think Bush is going to have a difficult year,
but if he works his way through 1991, I think he's in a very
strong position for 1992" ("McLaughlin," CNBC, 11/26).
*5 NUNN AIDES CHECK OUT NEW HAMPSHIRE; FEBRUARY VISIT EXPECTED
BOSTON HERALD's Wayne Woodlief reports on "several Democrats
-- buoyed by the 1990 elections that exposed President George
Bush's weaknesses --preparing to test themselves in the Granite
State.' " GA Sen. Sam Nunn and VA Gov. Douglas Wilder "are likely
to make the first forays, outriders of what will later become a
Democratic cavalry charge before New Hampshire's first-in-the-
nation presidential primary in February 1992. A veteran NH Dem
said "Nunn's people already have been quietly making telephone
calls up here to find out what people think of him, and it looks
as if Nunn will be the featured speaker this coming February at
the state party's major fund-raiser." NH Dem chair Ned Helms
"declined to say if Nunn had been invited to the "Hundred-Club
Dinner" but admitted "there have been some conversations, some
overtures to people in Washington. Nunn aide Scott Williams
said "we have a policy of not discussing [Nunn's] schedule" in
advance and said Nunn "has no plans or inclination to seek the
presidency" (11/25). John McLaughlin predicted, "Nunn will
perform in such stellar fashion" at the Gulf hearings "that he
will be re-inspired to run for president and he will be the first
Democrat to throw his hat into the ring" (The "Group," 11/24).
WILDER: Wilder, "who was already took some soundings in New
Hampshire in a visit up here last spring, is expected back in
January to help the state's Young Democrats raise some money"
(Woodlief, 11/25). Wilder announced yesterday he'll take a 2%
pay cut as part of his VA austerity program (mult, 11/27). CBS'
Bob Schieffer on Wilder: "There is a new, would-be Democratic
candidate." CBS' Bruce Morton: "The Governor is against new
taxes, and he's been saying that a lot lately. Saying it in Iowa
where they have those presidential caucuses, at the Kennedy
School of Government in Massachusetts, just next door to New
Hampshire." VA analyst Robert Holsworth: "There's a line that
he has, that in this business, if you're not moving up, then
you're moving out. GA pollster Claiborne Darden on Wilder's
chances: "He's black. And the country, as of yet, is not ready
for a black president." Morton: "He's used to winning. A lot
of people never thought he'd get elected Governor" (CBS, 11/24).
JACKSON: CHICAGO TRIBUNE's Mitchell Locin reports although
the WASH. POST "reported that Jackson had drawn up a campaign
strategy that had him promoting [DC] statehood nationally,
drumming up public support, and challenging members of Congress
to go on record in favor of it," Jackson "denied in an interview
that such a strategy had been suggested." Jackson's "previous
presidential runs raise questions about whether the former
Chicagoan, who moved to the nation's capital last year, will
mount another bid for president, aided by his efforts on behalf
of statehood." Jackson said "I have no plans presently" to run
in '92, but, "It is an option I will not rule in or out, nor
should I" (11/25).
REDISTRICTING
*6 IOWA: NUSSLE POTENTIAL ODD MAN OUT
"Since Iowa loses a congressman to reapportionment in 1992,
insiders report the most likely target right now" is 2nd CD GOP
Rep. -elect Jim Nussle (David Yepsen, DES MOINES REGISTER). He is
an "unknown" with the "least seniority
There is a good
probability the computers will toss Nussle and
...
Dave Nagle [D-
03] or
...
Jim Leach [R-01] together
Putting Nagle and
Nussle together is also a compromise that requires each party to
put one of their own on the line.
It's hard to see Senator
Charles Grassley [R] wanting to threaten Dave Nagle, however.
For now, Nagle wants to stay in the House and have a nice long
career
If he's given a bad district, Nagle will have nothing
to lose by running against Grassley" in 1992 (11/26).
*7 SOUTH CAROLINA: GOP BACK 'N' BLACK
The "most pressing" issue in redrawing the state's districts
"is whether existing lines will be redrawn to create a black-
majority [House] district" (Steve Piacente, Charleston POST-
COURIER). State Sen. Herbert Fielding (D) has "made it clear he
would likely be a candidate for such a seat." To create the CD
"would require taking heavily black counties" and combining them
into one black district (11/25). Fielding: "The way I see it,
we don't have any alternative" (Dan Hoover, GREENVILLE NEWS).
What could be "a formidable, if somewhat unconventional,
coalition" between the Legislative Black Caucus and Republican
legislators is about to be formed (NEWS) and members of a state
Senate panel on reapportionment have already met with U.S.
Justice Dept. officials, "who will pass judgment on the eventual
plan.
Based on one plan in circulation, [Rep. Robin] Tallon
(D-06) could wind up pitted against Rep. John Spratt (D-05) " in
1992. Both Spratt and Tallon were "popular enough to be re-
elected without opposition this year." The state's other two Dem
Members, Liz Patterson (D-04) and Butler Derrick (D-03), "do not
appear overly concerned" since both "represent districts that
would be geographically awkward to carve up." Also, neither the
third nor fourth district possess as many black voters as do the
fifth (29%) and sixth (37%). Patterson spokesperson Chuck Carr:
"All the scenarios I've seen don't show a lot of change in our
district." If incumbent Dems stand to lose, GOP Reps. Arthur
Ravenel (R-01) and Floyd Spence (R-02) "will probably benefit."
Ravenel: "It would affect me positively because it would reduce
the minority population. They vote overwhelmingly Democrat."
Another "map being circulated would create a horseshoe-shaped
district around parts of Charleston, Dorchester, and Berkeley"
leaving the heart of the 1st CD intact "while encompassing parts
of the 1st, 2nd, 3rd, 5th, and 6th districts" (Hoover, NEWS).
"Helping the drive for a black district is the fact that there
are more blacks and more Republicans in the General Assembly
today than 10 year ago. One GOP insider forecast a battle
between the Black Caucus and the Republicans 'against the white
Democrats. NAACP national board chair Dr. William Gibson
"predicts legal action if a black district is not constructed."
Gibson cited the Voting Rights Act of 1982 and said, "either
you're going to go. about it right, or you're going to subvert the
law" (P-C, 11/25). But some Dems "have suggested that black
leaders might accept a tradeoff in the form of more majority
black legislative districts" (Hoover, NEWS).
*8 TEXAS: HISPANICS PLOT STRATEGY
Mexican-American state lawmakers are scheduled to meet in a
week to develop a redistricting battle plan" (AP/DALLAS MORNING
NEWS). Political analysts "estimate that the minority community
could gain as many as" four state legislative and three CDs once
the lines are drawn and the Justice Dept. approves the plan.
Mexican-American Legislative Caucus chair/state Rep. Eddie
Cavazos (D) wants "to be sure all of (the caucus) members are up
to snuff on how the redistricting process works and what the
rules are" because "it's the most critical issue for us in the
next decade.' MALC leaders "already have demanded a recount of
the U.S. Census Bureau's preliminary" count" which Cavazos said
"might delay the redistricting process some": "Look at the
Houston area, where there are about 800,000 Hispanics, but only
two state legislators. And then there's Dallas, where there's
250,000 Hispanics, but no Hispanic representatives." AG-elect
Dan Morales (D) "predicted that it will be difficult to create
and defend a plan that will increase the minority community's
numbers through the redistricting process": "Political careers
will be ended, personal and political relationships that have
existed for decades will be strained and very likely end. No one
is looking forward to this" (11/25).
*9 VIRGINIA: AND STILL MORE BLACK/GOP UNITY
A RICHMOND TIMES-DISPATCH editorial says "momentum
reportedly is building within Republican ranks for the party to
join forces formally with the NAACP and ACLU to support
gerrymandering under the Voting Rights Act that would result in
the carving-out of a black-majority [CD]. Probably that would be
done by combining portions of several Tidewater cities (Hampton,
Portsmouth, Newport News, Norfolk) with rural Southside counties
that are heavily black.
However, only two of those parties
[ACLU, NAACP, GOP] would be pursuing a course consistent with
their past enthusiasm for proportional representation.
For
the Republicans, this would be a temporary marriage made out of
sheer self-interest
Rep. Herbert Bateman (R-01), is one who
has thought this proposition through and he rejects it
unequivocally
Bateman's home area of Newport News apparently
would be carved up in such a scheme
By joining the special-
interest push for the crazy-quilt drawing of lines necessary to
create a black-majority district, the GOP also would be yielding
the high moral ground on this question to [Gov. ] Wilder, who so
far has opposed this kind of racial gerrymandering and whose own
election proved that such schemes are unnecessary for blacks to
win high office.
Do Virginia Republicans really want to be on
the other side?" (11/25).
For IL update, see IL Sen '92 story, #13.
CAMPAIGNS '91
*10 PHILADELPHIA MAYOR: FIRST INDEPENDENT POLL
A poll, conducted by Temple Univ. political science
Professor Michael Hooper "in the first two weeks of November,"
surveyed 141 GOPers (margin of error +/- 7%) and 319 Dems M/E +/-
5% (PHILADELPHIA INQUIRER, 11/27). GOPers: DA Ronald Castille,
ex-mayor Frank Rizzo and financial consultant Sam Katz.
DEMS
Ex-DA Edward Rendell
31%
Undecided
30
City Councilman Lucien Blackwell
12
U.S. Rep. Thomas Foglietta
10
City Councilman George Burrell
7
Ex-City Managing Dir. James White
5
Ex-Phil. Bar Assn. Chancellor Peter Hearn
3
Ex-City Controller Joseph Vignola
3
GOPers (Head-to-head)
Castille
59%
Rizzo
41%
Rizzo
25
Katz
31
Undecided
16
Undecided
29
"In both races, black Democrats are the largest bloc of
undecided voters -- 31 percent --- suggesting that the black
community is not yet ready to embrace either [Blackwell or
Burrell], the two black city councilmen
Among black Democrats
Rendell led with close to 23 percent. Blackwell was second
among blacks with 20 percent, more than double Burrell's support
among blacks." Rizzo has "surprisingly weak support in the [GOP]
primary
in a head-to-head match with Rizzo
Katz
|
who
has never run for public office -- does surprisingly well." The
poll did not include City Councilman Brian O'Neill (R), who has
indicated he will run if Castille doesn't, and PA House Speaker
Robert O'Donnell (D), who is "considering" a run. The poll was
also conducted before Hearn began his TV ads (S.A. Paolantonio,
INQUIRER, 11/27).
COUNCIL BATTLES: INQUIRER headline: "Vendor bill nearly
falls as Burrell does battle with fellow Democrats." The bill
should pass the Council 11/29. "But intense back-room lobbying,
conducted principally by Burrell's chief political antagonists
within his own party, has not made it easy.
Burrell is hoping
that the adoption of his vendor bill will silence his critics who
have questioned his mayoral ambitions in view of what they
contend is a sparse legislative record" (Thomas Turcol, 11/27).
*11 SAN ANTONIO MAYOR: GETTING MIGHTY CROWDED
Today, former San Antonio City Councilman Van Archer "will
formally join Mayor Lila Cockrell, Councilwoman Maria Berriozabal
and Councilman Nelson Wolff as a 1991 mayoral candidate."
Berriozabal consultant Richard Gambitta "and other observers said
Archer's presence is likely to further fragment the North Side
(or anglo) vote." One union activist: "I really think that he's
going to take those conservative voters away from [Cockrell]. If
Before Archer entered, "Cockrell had been positioned as the most
philosophically conservative candidate and the contender with the
strongest Republican ties." Archer now "weighs in as the most
conservative and a thoroughly Republican contender. ...
there is
disagreement on how much impact partisanship will have on the non
partisan mayoral battle." Archer's membership in the Homeowner-
Taxpayer Assn is expected to give him "a built-in base support
from that conservative group's members and allies. Some
observers "expect to see another serious Hispanic candidate
emerge and cut into Berriozabal's base.' Arturo Sanchez, a
grassroots organizer and Cockrell consultant "said the candidates
will have to work harder at the grassroots level and on getting
their likely supporters interested and to the polls" (Bruce
Davidson, SAN ANTONIO EXPRESS-NEWS, 11/24).
CAMPAIGNS '92
*12 CALIFORNIA SENATE: MORGAN WOULDN'T TAKE JOB
State Sen. Rebecca Morgan (R), "who had been mentioned as a
possible successor to Governor-elect Pete Wilson in the U.S.
Senate, removed herself from consideration for the job yesterday"
(Jerry Roberts, S.F. CHRONICLE). Morgan said that she did not
wish to be considered for appointment to Wilson's seat and that
she had no plans to run in '92 for the seat to be vacated by the
retirement of Sen. Alan Cranston (D). Morgan: "I thought long
and hard about it and feel very flattered, but really believe my
skills and experience at this time can be most effective at the
state level.' Morgan joins ex-Rep. Ed Zschau, a likely '92
candidate nevertheless, as possible appointees "to drop out of
the running." Speculation on others Wilson might appoint has
focused on U.S. Trade Rep Carla Hills, Orange Co. Supervisor
Gaddi Vasquez "and a host of GOP congressmen," including Reps.
David Dreier, Jerry Lewis and Bill Lowery (11/27).
BROWN: CHRON's Roberts reports CA Dem chair Jerry Brown's
"battle for control of the party [see HOTSPOTS #17] is filled
with implications for the 1992 Senate races.
Being coy about
his Senate plans, Brown said in an interview that he expects to
raise his political profile in coming months by speaking out
regularly as the 'loyal opposition' to
Wilson. Brown, who
years ago coined the term 'paddle to the right, paddle to the
left,' to describe his shifting politics, has now turned his boat
sharply to the left and is pushing an unabashedly liberal agenda
that includes higher taxes on rich people and 'an increased role
for the public sector. Brown: "This turn in the election
cycle allows a true liberal message to be effective. Whether it
will work in '92, it may be too early to say. But in the near
future, the liberal point of view will regain credibility as the
exhaustion of Republican policies become clear" (11/27). N.Y.
TIMES' Katherine Bishop notes the latest joke on the possibility
of Brown facing Palm Springs Mayor Sonny Bono (R) in a Senate
general election. "If both men win their primaries
the
voters would be faced with Sonny and Jer" (11/27)
VASQUEZ: INSIGHT Magazine's Mark Lawrence Ragan writes,
"with Hispanics constituting a quarter of the state's population,
some political analysts have suggested that Vasquez's candidacy
could lure many Mexican-American voters away from their
traditional allegiance to the Democratic Party. But few people
believe Vasquez will be chosen for the seat. SACRAMENTO BEE's
Dan Walters: "I don't think Gaddi has two of the needed
attributes: a high probability of getting elected and access to
a lot of money" (12/3 issue).
*13 ILLINOIS SENATE: GOP'S "TOUGH TASK" FINDING DIXON FOE
"Sen. Paul Simon's landslide victory over Rep. Lynn Martin
compounds a difficult task for Illinois Republicans -- finding a
credible challenger" for Sen. Alan Dixon (D-IL) in 1992 (Bob
Estill, COPLEY NEWS SERVICE). Martin's "abysmal" showing
"underscores the problem facing challengers who lack statewide
recognition and a truly effective issue to employ against an
incumbent.
It provides added evidence that a challenge to
Dixon is not a viable career move for any of the seven remaining
House Republicans looking to dodge the congressional remapping
axe in 1992 when population losses will cost the state two of its
22 House seats." Timing factor: While Martin announced for her
'90 challenge 6/89 "and still was unknown to many voters nearly a
year and a half later, current House GOPers "may not know until
late in 1991 if the remappers are going to draw them out of a
job, especially if a Democratic-controlled state legislature and
Republican Gov.-elect Jim Edgar reach a stalemate and
redistricting ends up in the federal courts as it has before."
On the negative side for a challenger, Simon's perceived
weaknesses -- being seen as more liberal than most IL voters, and
missed votes in '88 from his presidential run -- won't work on
Dixon. Dixon has a 98% voting record since entering the Senate,
and hasn't missed a recorded floor vote this year; and he votes
"largely in the middle-of-the-road, even to the point of
spurring "speculation about a primary election challenge from
liberal Democrats." A "Republican state operative,' saying
discussions about a Dixon challenger will begin 1/91, points to
some benefits a challenger would have that Martin did not: Dixon
"lacks Simon's national fundraising base," the Senate candidate
won't be competing for attention with Gov. and other state
candidates, "and the expected re-election bid by President Bush
in 1992 will bring out Republican voters." But Dixon, "with no
rival in sight and more than $1 million already in his campaign
warchest" -- and a $1,000-a-person DC reception scheduled for
tomorrow -- is aiming to continue his "unbroken string of
election victories dating back to 1949" (Springfield STATE
JOURNAL-REGISTER, 11/26).
*14 INDIANA SENATE: CONGRESSMEN SAID TO GIVE GREEN LIGHT TO HILL
Contrary to recent speculation that some IN House members
were likely to run for the Dem nomination to face Sen. Dan Coats
(R), INDIANA LEGISLATIVE INSIGHT's Ed Feigenbaum reports, "the
Hoosier congressional 'perhapses' -- the members of Congress who
have been rumored to have their eyes on the 1992 Democratic
Senate nomination told 1990 nominee Baron Hill (D) that they
will not stand in his way for the 1992 nomination" (11/19 issue).
*15 NEW YORK SENATE: D'AMATO'S BROTHER FACES ILL WIND UPWIND
The government's "Ill Wind investigation of Pentagon
procurement fraud, responsible so far for convictions of 39
defense executives and consultants, former government officials
and corporations," has revealed a "spinoff investigation dubbed
Upwind that involves" Armand D'Amato, brother of GOP Sen. Alfonse
D'Amato (Ostrow/Broder, L.A. TIMES). Armand, "a Mineola, N.Y.,
attorney is under scrutiny for $70,000 in consulting fees paid to
his law firm by Unisys, a leading corporate target of the Ill
Wind investigation. Investigators suspect that the payments were
compensation for Armand D'Amato's help in getting Sen. D'Amato's
office to urge that Unisys be awarded a contract." Armand
D'Amato did not return the L.A. TiME's phone calls, and Sen.
D'Amato "heatedly denied the allegation, calling it 'a retread'
and saying the appeal from his office on behalf of Unisys was
made 'in the normal course of business.' He noted that Unisys is
an employer in his state and that he has been willing to fight
for any constituent company" (11/22).
*16 WEST VIRGINIA GOV: TALK ABOUT CAPERTON GETS PERSONAL
CHARLESTON SUNDAY GAZETTE columnist Fanny Seiler writes,
"Recent events involving Gov. Gaston Caperton [D] have led to all
kinds of questions being asked by politically attuned West
Virginians. Among these are: What is Caperton's state of mind?
Is he depressed? Is he healthy? Will he run for re-election?
Is he blissfully married, or do he and first lady Rachel Worby
just put on a public display?" The questions are coming fast and
furious after two recent incidents: (1) The firing of his press
secretary G.C. Morse (who is, incidentally, his third cousin)
after a much-reported, much-denied shoving match that had to be
broken up by a state trooper; (2) Caperton's possible trip to
the Cleveland Clinic after he quit a trade trip to Japan, having
to turn back from San Francisco. Also, "Caperton's and Worby's
public behavior is seen by some as genuine affection, but is
viewed by others as an 'overplay' to project an image. Either
way, people around them get embarrassed. Worby sat on Caperton's
lap at a [WVU] football game, and she sat on his lap at a social
event election night" at Sen. Jay Rockefeller's WV home. "One
guest said both were eating scalloped potatoes from the same
plate, and she would eat a bite and then give the governor a
bite." The Caperton marriage faces scrutiny due to his divorce
from Dee Caperton, early in his term. Dee subsequently ran for
statewide office and lost. Adds Seiler, "in political circles,
Worby is viewed as being very dominant, more than Dee Caperton."
One pol "says Caperton is losing the independent public base that
he had in 1988, and he will be forced to depend increasingly on
politicians for an organized effort" in '92" (11/25). GAZETTE's
William Miernyk compares events in Charleston to the old "Our
Gang" movies. "So far the Caperton administration has failed to
deliver on 'efficiency in government,' and other pre-election
pledges. But when in the memory of any living resident of West
Virginia has an administration provided such good comedy?"
(11/26).
HOTSPOTS
*17 CALIFORNIA: BROWN FENDS OFF DEMOCRATIC INSURGENCE
CA Dem chair Jerry Brown is "doing a little crowing" this
week about how he "skunked the opposition in the first major test
of his leadership" in the party (Jerry Roberts, S.F. CHRONICLE).
At last weekend's meeting of the CDP executive board, S.F.
Assemblyman John Burton (D), calling Brown "self-serving, inept
and arrogant," urged "party insiders to launch an inquiry into
[Brown's] two-year tenure, possibly as a prelude to a full-blown
effort to oust him." Even Dem stalwart Speaker Willie Brown
said, "I would support John's criticism." But "Instead, Burton
found himself the target of angry criticism. By attacking
Brown in front of the party's most dedicated volunteers, Burton
rekindled long-simmering hostile feelings between grass-roots
types, who are more interested in party building on the local
level, and members of the elected Democratic establishment, who
are more interested in preserving their own careers and who have
been known to treat party members with contempt." Chairman Brown
could, however, still face "an open challenge" at the 3/91 CA Dem
convention in Oakland "unless he moves to assure [CA Dems] they
will have an adequate field operation next time around." But for
now, Brown was pleased: "Not one person agreed with him.
Everybody supported my position. I secured my political base
because they were the people I work with" (11/27). "At the heart
of the criticism is the way Mr. Brown managed, or failed to
manage, the effort to sign up new voters, register those who had
dropped off the rolls and bring out absentee voters"; the GOP
outspent Dems nearly 4 to 1 in registration/GOTV drives, "and
their efforts paid off." Dianne Feinstein chair Duane Garrett:
"This was his acid test. We were supposed to take him seriously,
believe that he had grown up. And he failed on a level even his
harshest critics didn't anticipate. He was a disaster.' Brown,
meanwhile, "said his efforts were stymied" because Dem office
holders were obsessed with battling CA's term-limitation ballot
measures, and he "also criticized the Feinstein campaign's
reliance on television spots" (Bishop, N.Y. TIMES, 11/27).
*18 IOWA: TAUKE, TAKE TWO
DES MOINES REGISTER's Dave Yepsen reports failed outgoing
Rep. Tom Tauke (R), who lost a Senate challenge to Tom Harkin,
"says he is miffed at his media buyer, Dresner, Sykes (see
HOTLINE 11/16 #4). "Who wouldn't be? Tauke spots are still
running on some radio and TV stations" (11/26).
*19 KENTUCKY: SENATE RACE AND VOTER DISSATISFACTION
The latest Louisville COURIER-JOURNAL Bluegrass State Poll
of 644 registered voters taken a week after the election (margin
of error +/- 3.9%) "found that many people, especially those who
voted for" Sen. candidate Harvey Sloane (D) "or who didn't vote
at all in the race, said they weren't satisfied with the choice
of either candidate." Among those who said they voted for
Sloane, 62% wished for other choices; among those who said they
voted for Sen. Mitch McConnell (R), only 42% wished for other
choices. The poll also asked if "advertising in the Senate race
made [choosing] easier or more difficult." 35% thought the ads
made deciding "morè difficult, 20% thought they made it
"easier," while 41% felt they "made no difference" (11/25).
*20 MASSACHUSETTS: THE LEADERS THAT GOVERN TOGETHER,
Gov.-elect Bill Weld (R) plans to allow his running mate LG-
elect Paul Cellucci to move into an office in the governor's
suite "where he will help
Weld govern.' Traditionally, the
LG takes the office "on the second floor beneath the governor's
office." Cellucci: "This office has been wasted for the last 16
years under Democratic rule
now that is going to change
I'll be a doorway away" (Lucas, BOSTON HERALD, 11/25).
THE AD THAT WASN'T: BOSTON HERALD gives out some campaign
'90 awards, including "Best TV Ad Never Shown": "John Kerry's
answer to Jim Rappaport's 'Metamorphosis' commercial. Some Kerry
aides, dismayed by Rappaport's ad showing Mike Dukakis's face
slowly changing into a picture of Kerry, plotted a counterattack.
Their version: Dan Quayle's face changing into Rappaport's.
Just as well. It might have scared the kids" (11/25).
*21 NEBRASKA: NELSON TO ORDER STUDY OF TAX FAIRNESS
Gov.-elect Ben Nelson (D) announced one of his first acts as
Gov. will be to order the NE Dept. of Revenue "to study the
'fairness' of the state's income tax system
to show state tax
burdens at various income levels [and to] serve as a basis for
legislation he plans to introduce to change the income tax
system." Nelson said the study may also examine NE's capital
gains tax exemption (Cordes, OMAHA WORLD-HERALD, 11/25).
*22 NEW JERSEY: FLORIO'S EXECUTIVE POWERS FOR AUTO INSURANCE
Gov. Jim Florio (D) announced he will use "emergency powers"
to enact nine key regulations, passed as the 1990 Fair Automobile
Insurance Reform Act and signed into law 3/90, to put the reforms
into place more quickly by skirting normal regulatory process for
such new measures. Florio will be able to put such provisions as
medical cost limits and tow/storage cost limits in place by 1/91,
and other provisions by 4/91; "Without the order, it could have
taken until July 1-for the changes to become effective" (Motley,
KNIGHT RIDDER/JOURNAL OF COMMERCE, 11/27).
*23 PENNSYLVANIA: LAWLESS FLIPS, WINS, THEN FLOPS
Nine-month Dem John Lawless, "who scored an upset victory in
Montgomery County this month when he was elected state legislator
switched his registration" back to the GOP 11/21. Lawless, a
GOPer until 2/90, said the GOP "best fits my constituents'
needs." His "conversion
lowers the Democratic edge in the
state House to 107-96." Joseph A. Lashinger Jr. (R), the
incumbent Lawless beat 11/6, called the conversion "a disgrace"
and said "it was possible he would challenge Lawless to regain
his seat in 92." Norristown Area Dem leader Alice Fisher said of
Lawless, "I think he's going to turn into a household joke around
here" (PHILA. INQUIRER, 11/22).
*24 SOUTH CAROLINA: LOWEST VOTER REGISTRATION IN US
SC "posted the worst record in the country for
registration," as "only half of the 2.7 million eligible voters"
were registered for the last election. SC also "ranked 48th out
of 50 states in voter participation" this year, above only VA a
TN. Using unofficial commission numbers, the Palmetto Project, a
Charleston organization committed to increasing voter
participation, estimated that only 28.3% of residents 18 or older
cast ballots, down from the 30.1% reported for the '86 governor's
race. of those registered, 56% actually cast ballots, slightly
below the national average of 59%. Project Exec. Dir. Phil Noble
was "encouraged by the rate of participation" but called for more
effort on the state's part to increase registration (SOMERSET
HERALD JOURNAL, 11/25).
*25 TEXAS: 14-1 -- PAPER ENDORSES IT, MAYOR DEFENDS IT
A DALLAS MORNING NEWS 11/24 editorial supports the passage
of the 14-1 redistricting plan despite efforts by its opponents
to defeat the referendum. The 14-1 battle (see HOTLINE, 11/20
#45) has revolved around race, specifically the number of
African-Americans and Hispanics on the city council. "Although
minorities are believed to make up more than half of the city's
population, Anglos currently control nine of the eleven seats on
council, [and] African Americans hold two. On 11/25 "Dallas
Mayor Annette Strauss
accused opponents
of spreading
false information and playing on racial fears.' Just Say NO! to
14-1 campaign chairman Tom Pauken "denied any racial overtones in
his campaign. However, he said he opposes any council structure
that guarantees a certain number of seats to African-Americans
and Hispanics." Pauken calls Strauss "inconsistent," citing her
endorsement of the proposes 10-4-1 plan and then "asking us to
abandon it" (DMN, 11/26). The DMN editorial also called the
turnout for absentee balloting "depressingly small." The rest of
Dallas will cast their votes on the referendum Dec. 8 (11/24).
THE BULL ON BULLOCK: Austin AMERICAN STATESMAN's Dave
McNeely writes, "there will be some distinct differences in the
Texas Senate with Bob Bullock instead of Bill Hobby" as LG.
Hobby was "often indirect, while Bullock is very direct --
sometimes to a fault. Hobby usually is soft-spoken and
agreeable, slow to anger. Bullock's short fuse has gotten longer
in recent years, but he still goes ballistic upon occasion."
Bullock was a "stern taskmaster as comptroller" who, as LG "will
have indirect control, as gatekeeper of budget and legislative
matters, over a much broader area" (11/22).
TV MONITOR
*26 THIS MORNING: ABC and CBS led with American diplomats who
"apparently have succeeded in lining up enough U.N. Security
Council votes to set a January deadline for Iraq's withdrawal
from Kuwait" (CBS). NBC led with fighting in S. Lebanon which
caused the deaths of 5 Israeli soldiers and two Palestinian
guerrillas. Martin Fletcher: "An Israeli was about to throw a
hand-grenade when he was shot. The grenade dropped near his
friends and blew them up.
Now, bruised by this morning's
deaths, Israel can be expected to hit back hard" (NBC) NBC
interviewed Sens. Sam Nunn (D-GA) and William Cohen (R-ME). CBS
interviewed Sens. John McCain (R-AZ) and John Glenn (D-OH)
Nunn: "I think war is justified. The question's whether it's
wise. Cohen said the Sen. Armed Forces Comm. will "be asking
the question whether the liberating of Kuwait with American
military force is vital to our national security [and] whether
the embargo is going to work.
War should be the last resort,
not the first resort" (NBC) McCain: "Democrats have seen that
it's to their advantage not to have to go on record in support of
what the president is doing, and they can carp from the
sidelines" (CBS). Asked how the K-5 hearings are going, McCain
answered, "We are doing extremely well. The Special Counsel has
basically said, explicitly, there's no evidence of any wrong-
doing and clearly he has made a case that we have set the
standard for ethical behavior. I am very pleased, frankly, that
the American people have gotten that information, particularly
the people of Arizona. And Glenn replied, "My answer is one
word: Vote, vote" (CBS).
LAST NIGHT'S LINEUP: ABC, NBC and CNN led with progress
towards a UN resolution authorizing force against Saddam Hussein.
CBS led with Hussein's release of three more American hostages.
All nets showed footage of President Bush arriving in Mexico to
discuss a new trade agreement. CNN's Catherine Crier called it
"the latest trip in the non-stop Bush presidency." All nets
reported on the Polish elections, Washington state floods, and
the "brilliant" fuel fire in Denver. CBS reported on a
nationwide trend to implement curfews for teens. ABC's
"Nightline" discussed the elections in Poland. CNN's "Crossfire"
featured CSIS' James Blackwell and nuclear arms analyst Leonard
Spector discussing a possible nuclear threat from Hussein. CNN's
"Larry King Live" guest was Ex-UN ambassador Jeane Kirkpartick.
CNBC's "McLaughlin" guests were Rep. Newt Gingrich (R-GA),
Insight's Bill Whelen, and New Yorker's Joe Klein (for more
"McLaughlin" also see today's #3 and #4).
PLEASE RELEASE ME: Saddam's latest hostage release "added a
new dimension" to the crisis (Dan Rather, CBS). "Whether out of
fear or friendship, Hussein can't seem to wait to release his
hostages" (Richard Roth, CNN). All nets showed footage of the
three ex-hostages "who bear no anger or grudges" towards Saddam.
CBS' Richard Threlkeld: "What started off as a trickle of
Americans going to Iraq to try and retrieve hostages may turn
into a steady stream of them, because the evidence is, it works."
"Hussein is hoping to convince the allies that they can achieve
more with diplomacy than with force [but] the truth is, Iraq is
still holding more than 100 Americans and thousands of
foreigners" (Bill Whitaker, CBS). CBS' Bill Plante: "To the
State Department [the release] was just more of the same cynical
manipulation." CBS, CNN and ABC focused on Saddam's claims that
Iraqis have died as a result of U.S. sanctions against his
nation. NBC's John Dancy: "The message to the outside world
seemed to be, 'the sanctions are already working, why do you need
to use force?'" Rep. Newt Gingrich (R-GA): "If you're prepared
to not use force against a dictator who has used chemical weapons
against his own people, what threat are you going to have?"
("McLaughlin", CNBC).
SOUND OFF: CBS reported the first Army combat reservists go
on active duty Friday and CNN reported thousands of more Marines
will leave the U.S. for the Gulf on Wednesday. CNN's Wolf
Blitzer: "By January first, more than 400,000 U.S. forces will
have amassed in the Gulf." NBC and ABC reported on Britain's new
"giant viper" missile that clears a path for tanks to follow.
PUT IT IN WRITING: CNN's Frank Sesno: "Bush has gone
suddenly silent on the topic [Hussein], preferring to let the
attention shift to the U.N." CBS' Dan Rather: "President Bush's
attention is elsewhere: on the United Nations." The resolution
is "just an opening position" according to US officials (John
McWethy, ABC). NBC's Dancy reported there is "little doubt" the
UN will pass a resolution on Thursday that sets a 1/1 deadline
for Hussein to withdraw and authorizing the use of all "necessary
means" if he does not. But ex-Sec/State Richard Murphy warned,
"there is a limit to which the man can be pushed into the corner.
You don't push the enemy against a locked door" (CBS).
S&L BITS: CNN showed ex-FHLB chair Edwin Gray testifying
before the select panel and claiming his warnings about the
industry were blocked by Congress. CNN's Anthony Collings
reported ex-Independent American Savings owner Thomas Gaubert's
lawsuit against fed. regulators is now before the Supreme Court.
TURNING JAPANESE: All nets reported on the Japanese firm
Matsushita's $6B purchase of MCA, parent owner of Universal
Studios. NBC's Tom Brokaw: "This is more than money." CBS' Dan
Rather: "The Japanese make their biggest deal ever in the U.S."
4 of the 7 top U.S. studios are now controlled by the Japanese.
TV SOUNDBITE
"Clearly he has made a case that we have set the standard
for ethical behavior."
-- Sen. John McCain (R-AZ), on Ethics Committee Counsel
Bennett's finding that Sens. McCain and Glenn were involved in
"no wrongdoing," CBS, 11/27
Speech Inserts:
A.
A decade from now we will enter the 21st century.
Already, we see the outline of the new world to come. It is
a world in which only those nations which can modernize,
compete, and trade will enjoy the growth and prosperity on
which their peoples' health and happiness depend. It is a
world which will require unprecedented cooperation among
nations to confront a new generation of challenges that know
no borders or national identity--the scourge of drugs, new
threats to the global environment, and the growing danger of
the spread of nuclear or chemical weapons around the world.
Here in the Americas, we see a special vision coming to
birth before our eyes: the world's first completely democratic
hemisphere where trade is free from Alaska to Argentina,
technology is shared, and the benefits of free enterprise
and growth are harnessed for all.
(country) is
fortunate to have a leader with a vision of the 21st century
who is guiding your nation soundly and wisely towards that
new world whose shape we already beginning to see.
B.
The changes taking place in Latin America are every bit
as profound and dramatic as the changes reshaping eastern
Europe. They are the product of a democratic revolution of
the people's will expressed through the ballot box. That
revolution is being led by leaders with courage and
vision--men like
who grasp the meaning of a
changing world and want your nation to play a part in it.
As neighbors, we look to the future together, because
our destinies are one. As we stand on the threshhold of the
21st century, we see possibilities that once were only
dreams but today are within our grasp. We see a future for
the Americas where democracy's roots are deep--where
elections are regular and each new ballot gives each citizen
a deeper stake in his country's future; a hemisphere in
which economic competition is viewed, not as a threat to
privilege, but as the key to prosperity and where men and
women who wish to launch a new enterprise view the state as
an ally, not an obstacle.
THE WHITE HOUSE
WASHINGTON
OCTOBER 27,1990
MEMORANDUM
TO:
DAVID DEMAREST
CHRISS WINSTON
MARK LANGE
ED MCNALLY
DAN MCGROARTY
CURT SMITH
MARY KATE GRANT
MARK DAVIS
BETH HINCHLIFFE
PEGGY DOOLEY
BOB SIMON
CAROL BLYMIRE
TED GARMEY
JENNIFER GROSSMAN
FROM:
CAROLYN CAWLEY
SUBJECT: PRE-ADVANCE TO SOUTH AMERICA AND MEXICO
ATTACHED:
Summary of speeches for the trip
Proposed itinerary
Preadvance notes
NOTE:
Mrs. Bush will accompany POTUS on the trip. She will
have her own activities, but she is expected to attend
all the speeches to Congress and the State Dinners.
Secretary and Mrs. Baker will also travel with POTUS.
I. SUMMARY OF SPEECHES FOR THE PRESIDENT'S TRIP TO SOUTH AMERICA
Brasilia, Brazil
-- Address joint session of Congress;
-- American Embassy community Greeting;
-- Remarks at luncheon for Brazilian business
community hosted by POTUS;
-- State Dinner toast.
Montevideo, Uruguay
-- Address joint session of Congress;
-- American Embassy community Greeting.
Buenos Aires, Argentina
-- Address joint session of Congress;
-- State Dinner - brief remarks;
-- American Embassy community Greeting.
Santiago, Chile
-- Address joint session of Congress;
-- State Dinner toast;
-- Remarks at breakfast hosted by the Chilean/
American Chamber of Commerce;
-- American Embassy community, Greeting.
Caracas, Venezuela
-- State Dinner toast;
-- Remarks at luncheon hosted by the Venezuelan/
American Chamber of Commerce;
-- American Embassy community greeting.
NOTE:
Arrival and departure statements are TBD. If statements are
required, they will probably be in Brasilia (first stop) and
Caracas (last stop).
PROPOSED ITINERARY FOR THE TRIP OF THE PRESIDENT
TO SOUTH AMERICA
DECEMBER 2 - 8, 1990
Sunday, December 2
9:00 p.m.
Depart Andrews AFB en route Brasilia, Brazil
Monday, December 3
8:15 a.m.
Arrive Brasilia Int'l Airport
8:40 a.m.
Arrive Planalto Palace
-- Arrival Ceremony
21-gun salute
Anthems
Review of troops
-- One on One meeting with President Collor
-- Expanded Bilateral Meeting
-- Joint Press Availability
11:15 a.m.
Arrive Brazilian Congress Building
-- Address joint session of Brazilian Congress
TelePrompted
Simultaneous interpretation
12:35 p.m.
Arrive U.S. Embassy
-- American Embassy community Greeting
1:25 p.m.
Arrive Ambassador's Residence
-- Luncheon for Brazilian business community
hosted by POTUS. Brief remarks.
8:30 p.m.
Arrive Foreign Ministry
-- State Dinner. Toast.
RON Brasilia
2
Tuesday, December 4
8:30 a.m.
Arrive Brasilia Int'l Airport
-- Departure Ceremony
12:30 p.m.
Arrive Carrasco Airport, Montevideo, Uruguay
-- Arrival Ceremony
21-gun salute
Anthems
Review of troops
1:20 p.m.
Arrive Edificio Libertad
(President's office building)
-- One on One meeting with President Lacalle
-- Expanded Bilateral Meeting
-- Joint Press Availability
3:30 p.m.
Arrive Legislative Palace
-- Address joint session of Uruguayan Congress
TelePrompted
Simultaneous translation
4:40 p.m.
Arrive U.S. Embassy
-- American Embassy community Greeting
6:15 p.m.
Arrive Punte del Este
-Private Dinner hosted by President and
Mrs. Lacalle
RON Punta del Este
3
Wednesday, December 5
8:15 a.m.
Private Breakfast with President and
Mrs. Lacalle
10:00 a.m.
Arrive Carrasco Int'l Airport, Montevideo
--Departure Ceremony
11:35 a.m.
Arrive Ezeiza Int'l Airport
Buenos Aires, Argentina
12:00 p.m.
Arrive Aeroparque ((chopper over))
-- Arrival Ceremony
21-gun salute
Anthems
Review of troops
Presentation of Key to City
12:35 p.m.
Arrive Plaza de San Martin
-- Wreathlaying Ceremony
12:50 p.m.
Arrive Casa de Gobierno (House of Government)
-- One on One meeting with President Menem
-- Greeting of Diplomatic Corps
-- Working luncheon with President Menem
-- Joint press availability
3:30 p.m.
Depart for Palacio de Congreso
(Palace of Congress)
POTUS' limo will be escorted by Grenadiers
(Argentine mounted soldiers) at a parade pace.
3:50 p.m.
Arrive Palacio de Congreso
-- Address joint session of Argentine Congress
** TelePrompted ** ((John Keller told me that
there may some difficulty in TelePrompter
space. The only place for it is a small
recessed area in front of and below the
podium -- but this where they want to put
the press travel pool. Apparently this
decision will be left to Demarest and
Fitzwater.))
Simultaneous interpretation
7:55
Arrive Sociedad Rural
-- Rodeo and cultural demonstration
-- Informal greeting of Supreme Court justices
-- State Dinner
Brief remarks
RON Buenos Aires
Thursday, December 6, 1990
8:50 a.m.
Ambassador's Residence
-- American Embassy Community greeting
9:25 a.m.
Arrive Aeroparque
-- Departure Ceremony
11:30 a.m.
Arrive Arturo Merino Benitez Airport
Santiago, Chile
-- Arrival Ceremony
Full Honors
12:15 p.m.
Arrive President Aylwin's private residence
-- Working luncheon with President Aylwin
-- Joint press availability
3:25 p.m.
Arrive Chilean Congress Building
Valparaiso, Chile
-- Arrival Ceremony
Honor Guard (from the Naval Academy; will line
the street outside the building)
Anthems
Review of troops
-- Address to joint session of Chilean Congress
TelePrompted
Simultaneous interpretation
5
8:40 p.m.
Arrive La Moneda Palace
Santiago, Chile
-- Ceremonious Arrival
Honor Guard
Review of troops
Fanfare
-- Private meeting with President Aylwin
-- State Dinner. Toast.
RON Santiago, Chile
Friday, December 7
7:55 a.m.
Arrive Holiday Inn Crowne Plaza Hotel
-- Breakfast hosted by the Chilean/American
Chamber of Commerce
Brief remarks (@ 8:10 a.m.)
TelePrompted
9:25 a.m.
Arrive Ambassador's Residence
-- American Embassy community Greeting
10:30 a.m.
Arrive Airport
-- Departure Ceremony
4:10 p.m.
Arrive Simon Bolivar Int'l Airport
Caracas, Venezuela
-- Arrival Ceremony
21-gun salute
Anthems
7:40 p.m.
Arrive La Casona
-- Private meeting with President Perez
-- State Dinner. Toast.
RON Caracas, Venezuela
Saturday, December 8
9:15 a.m.
Arrive Pantheon
(Tomb of Bolivar and other national heroes)
-- Wreathlaying Ceremony
9:55 a.m.
Arrive Miraflores Palaces
-- One on One meeting with President Perez
-- Expanded Bilateral Meeting
-- Joint press availability
12:30 p.m.
Arrive Hilton Hotel
-- Luncheon hosted by the Venezuelan/
American Chamber of Commerce (VENAMCHAM)
Remarks
TelePrompted
2:20 p.m.
Arrive Ambassador's Residence
-- American Embassy community Greeting
3:35 p.m.
Arrive Simon Bolivar Int'l Airport
-- Departure Ceremony
4:00 p.m.
Depart en route Andrews
7:05 p.m.
Arrive Andrews AFB
PREADVANCE NOTES -- BRAZIL
Address Joint Session of Congress
-- Monday, December 3 @ 11:35 a.m.
-- TelePrompted
-- Simultaneous Interpretation
-- 1200 attendees: Senators, Deputies, Cabinet ministers,
Supreme Court justices, Governors of the Districts,
military commanders, members of the diplomatic corps,
religious leaders, university presidents, etc.
-- The session will open while POTUS is in the holding
room (National anthem of Brazil, 1 speech by a Senator,
1 speech by a Deputy). POTUS will enter and there will
be 6 minutes of hymns followed by three speeches:
Senator -- 15 minutes
Deputy -- 15 minutes
POTUS
-- 15 - 18 minutes allotted
Session will close by the President of the Congress.
-- See photos of the building exterior the domes are very
symbolic. The inverted dome atop the Deputies Chamber
means that everything starts in the House and the cup
is open to the ideas of the people. Laws begin there.
The dome atop the Senators Chambers means that
the Senate is the final cap, laws become final -- the
"lid".
-- Check Kubiscek quote chiseled in marble at entrance.
(in Portuguese)
-- The bicameral National Congress consists of 78 Senators
(three for each state and the Federal District) elected
to 8 year terms. 495 Deputies elected at large in each
state to 4 year terms. The elections are based on
proportional representation weighted to favor less
populous states. The next elections are scheduled for
November, however the newly elected members will not
take their seats until January, after POTUS' visit.
Suffrage is compulsory for ages 18 - 70.
8
State Dinner -- Toast
-- Monday, December 3 @ 8:30 p.m.
-- The Foreign Ministry Building, Brasilia Room. See
photos.
-- 260 guests
-- The Brazilian Chief of Protocol asked that we keep
the President's remarks under 8 minutes. (I told
him not to worry!)
-- The main entrance to the building will be flanked
with honor guards. Then POTUS will ascend the "floating
staircase" (see photos) and be ceremoniously greeted
by the President and Mrs. Collor. Cocktails in the
anteroom (see photos) -- the "Dortinari Room" (named for
a famous modern artist. State dinner in the Brasilia
Room; one wall is covered with a mammoth textile/
macrame piece of art. The artist, Roberto Burle (BOOR
lay) Marx, is well known for his designs, particularly
in gardening and landscapes. He did the gardens at the
Palace and at the US Embassy. -- I'll try to find out
more about him.
Embassy Greetings
-- Monday, December at 12:35 p.m.
-- US Embassy - Brasilia, small auditorium
-- 450 attendees: embassy personnel, Brazilian
staffers, families, Americans from the area
-- Brasilia is really an artificial capital, carved
out of the land 30 years ago when the government
decided the nation's capital should be centrally
located. (It had been on the southeastern coast,
in Rio.) The city has quite an "outpost" feel
about it, and I'm told this is a pervasive feeling,
especially for the embassy people. Brasilia is
far from everything and to "go anywhere, you have
to go through Rio"! There could be a joke there,
like the infamous Atlanta anecdote: You have to
go through Hartsfield (Atlanta's big airport) to
get to heaven!
-- The US as first country to establish an Embassy
in Brasilia. The site, donated by the government
of Brazil was officially selected by Secretary of
State John Foster Dulles when he visited in 1958 with
President Kubiscek. The site was first occupied
in 1960 by a portable house trailer. President
Eisenhower laid the symbolic cornerstone of the
Chancery during his visit.
9
The inside patio was designed by the famous
Brazilian landscape artist Roberto Burle Marx --
also the artist of the hanging textile work at the
State Dinner site.
Luncheon for Brazilian Business Community Hosted by POTUS:
-- Monday, December 3 @ 1:25 p.m.
-- Ambassador Melton's residence -- back patio by
pool or the indoor dining room
-- Brief remarks
-- Approximately 100 attendees
-- I have copies of 3 proposed guest lists, TBD by the
Embassy. They are pretty much the same. Guests
will include various Ministers of the Brazilian
government -- Infrastructure, Economy, Foreign
Affairs, Justice, Environment; some Congressional
leadership; and leaders in the business community
such as the US-Brazil Business Council, Citibank,
General Motors, American Express, McDonalds,
Union Carbide. Also well as representatives from
such international organizations as the World
Bank and the InterAmerican Development Bank.
-- Contact: Kevin Brennan
Embassy Commercial Counselor
Planalto Palace -- Arrival Ceremony, Meetings -- No Remarks
Candangos is the nickname of the hardy pioneers who built
the city; sort of like our Pilgrims. In front of Planalto
Palace (site of arrival, one on one meeting and bilaterals;
located on 3 Powers Plaza along with the Congress building)
is a "Candangos" statue. The statue of two figures is
officially called "the Two Warriors" but is more commonly
referred to by the nickname.
It's the work of famed
sculptor Bruno Giorgi.
-- Across the street from the Palace is the "Pantheon
of the Fatherland" also known as the Pantheon to
Liberty and Democracy, with an eternal flame. See photos.
of inverted triangles.
Tancredo Neves was elected in 1985 but died
before taking office and the Pantheon was erected in
his honor. His entire life embodied the struggle
for democracy. Neves is a hero figure today, known
as the man who restored democracy in Brazil after
twenty years of military rule.
-- The area is known as "3 Powers Square"
Planalto
Palace, the Supreme Court, the Congress Building
plus the Pantheon.
10
Other Notes on Brazil:
-- Brazil gave birth to the Lambada, the forbidden dance.
Stay away from calling Collor "Indiana Jones". POTUS
already called him this once -- it was cute for
awhile, but it's a sensitive subject now. President
Collor has eased back on his weekend daredeviling, in
large part because his mother launched a national
campaign to get him to stop. The weekend that we
were there however, he drove Ferrari at 140 mph down
the highway. In sum, Collor still does all the stuff
but in low profile. It's OK to jest him about it,
but don't refer to him as Indiana Jones.
HISTORY:
Brazil has been independent since September ,1822. It is a
Federative Republic with broad powers granted to the federal
government. Collor is the first popularly elected President
in almost 30 years. (coincidentally, Brasilia is about 30
years old as well.) Collor succeeded Jose Sarney, the first
civilian President after 21 years of military rule.
Brasilia:
Situated roughly in the center of Brazil, high on the
inland plateau termed the "planalto", Brasilia was
officially inaugurated on April 21, 1960. However as
an idea it dates back three centuries to the dreams of
the new world empire by the Italian monk, Dom Bosco
(after whom many places in Brasilia are named).
Brasilia is also the product of the early
Portuguese settlers for a safe inland capital away
from the poor climate and military invasions so
prevalent on the coast. The Portuguese Court in Lisbon
ordered that studies be conducted concerning the
capital location, but nothing was done until 1955.
Former President Juscelino Kubiscek promised in a
now famous campaign speech that, if elected, he would
build the new capital within his 5 year term.
He was elected and kept his promise. Actual construction
was begun in 1957 around the clock and the city was
completed in 1960.
The men responsible for the rising of Brasilia are
the architect Oscar Niemeyer and engineer Lucio Costa.
Niemeyer designed all of the principal buildings and still
holds veto power over new construction. Costa planned the
layout of the city itself, the "Plano Piloto", choosing to
make it look from the air like an airplane, a symbol
of progress. The city is laid out like a plane, with a
main body, wings, etc.
11
At the intersection of the main axes is the bus
station, called the "rodoviaria", truly the center of the
city in its early years, as workers and their families
arrived from all parts of Brazil seeking opportunity in the
fledgling capital.
In the cockpit of the plane is the Praca dos Tres
Poderes (3 powers plaza).
Sights
o
President Medici Sports Center A sports stadium which
holds 42,000 spectators, plus a gym for 25,000. Maybe
there's a joke in here.
Rogerio Pithon Farias Park Reputed to be the largest
city park of any capital in Latin America. Covers
4 million meters square.
The Cathedral The shape of the Cathedral represents
Christ's crown of thorns. The pillars symbolize the
states of Brazil supporting the crown, which is set
into the ceiling disk. The main entrance leads under
ground through a shadowy tunnel, meant to prepare
churchgoers by meditation and self-examination for
emergence into the sunny circular church.
-- The Brazilian flag has the words "Ordem y Progreso" on
it -- "order and progress" in accordance with the
positivist philosophy of its fathers.
-- Brazil got a new constitution in 1988.
-- On the economy and other issues:
O
Avoid comparisons between Brazil and Mexico.
The US hopes for Brazil and Argentina to become
signatories of the Treaty of Tlatelolco, a
nuclear limitation agreement. POTUS has
telephoned Collor several times on this issue.
See Collor's recent UN speech.
o
Debt:
A few weeks ago, Brazil had a major
proposal to restructure their debt payments.
In overview, they'll issue 3 kinds of bonds
in exchange for their debt commitment. They'll
sell these back to the governments and banks
they owe at various auctions. They'll be paying
the principal ahead of the interest.
12
CONTACTS:
-- John Keane, Political Counselor (**)
-- Cultural Section:
Luzia and Marcillo
-- Gordon Jones, Economic Counselor
-- Bob Jordan, PAO
13
PREADVANCE NOTES -- URUGUAY
Contacts:
Kate Jarvis -- Embassy Information Officer
John Jurecky -- Charge d'Affaires; Control Officer
for Joint Session event
Notes of interest:
-- Eisenhower visited Uruguay on his big South America trip.
-- Johnson also visited in 1967.
-- On the outskirts of Punta del Este is a large park
popular for camping named "FDR Park".
-- The Foreign Service Institute in Rosslyn has a
good library where you can find books on Uruguayan
history and culture in English.
-- Uruguay is known for her friendly people and the
pervasive air of tranquility.
-- The Uruguay Round of GATT began here in 1987 at
Punta del Este. The current GATT round will be
underway beginning December 3 in Geneva.
-- JOSE ARTIGAS
National hero of Uruguay -- their George Washington.
His statues are located all over the city of Montevideo;
the main one is his tomb at Independence Plaza downtown.
His statue also stands outside the Edificio
Libertad, the site of meetings and bilats on this trip.
See photos of both.
-- The Pope visited Uruguay in 1987 or 1988. A giant
crucifix was erected in his honor and he held a Mass for
thousands there. I was told that Uruguay is a Catholic
country in name only.
-- Uruguayans are big fans of basketball and soccer
(futebol). They have fielded many World Cup players
and have several citizens playing in the professional
European leagues.
-- Jose Rodo was a major literary figure. The park
near the Embassy bears his name. Most of the streets
in Montevideo are named for famous figures in their
history. George Washington an important figure -- and
his statue stands near the Embassy on a main
thoroughfare.
14
Embassy Greetings
Tuesday, December 4 @ 4:40 p.m.
The main entrance hall of the Embassy
Approximately 300 attendees -- Embassy personnel,
Uruguayan staff, families, possibly Americans
from the area.
They have been waiting for several months for
their Ambassador-designate to be confirmed (since
April?). It's hoped that he'll be on post by the time
of POTUS' visit. If he's not, this has definite
joke potential. If he is, you could still use it.
The Embassy was designed by I.M. Pei (the famed
architect who also did the East Wing of the Nat'l
Gallery and the glass pyramid at the Louvre). It's
one of the few embassies in the world done by a
renowned architect -- but the embassy personnel
have many complaints about it and claim that it
was designed before "user friendly" became a popular
term. (Humor potential?)
Humor?: their mail is often ripped off before it
gets to the country. Chances are few that they
ever receive any mail orders.
POTUS will arrive in Montevideo during the last
week that anybody stays in the city -- everyone
escapes to Punta del Este.
Address to Joint Session of Uruguayan Congress
Tuesday, December 4 @ 3:30 p.m.
Legislative Palace -- Chamber of Deputies
Approximately 300 attendees; 132 Senators
and Deputies.
Embassy Control Officer: John Jurecky
Charge d'Affaires
TelePrompted
Above the podium is a huge mural (see brochure and
photos). Unfortunately, I couldn't locate anyone
who could tell me what it represents -- it's probably
worth looking into.
Also above the podium is an inscription chiseled in
marble. It's in Spanish, but I was told it says:
"My authority emanates from you and that authority
seizes through with your sovereign presence."
15
The Legislative Palace is absolutely beautiful. The
interior is all Uruguayan marble of different colors.
See photos and brochure.
Punta del Este
O
No remarks in PDE. POTUS will there for a private
dinner with President and Mrs. Lacalle at a small
seaside restaurant. The next day, a private
breakfast with them at a small inn in town. Mostly
an R&R stop. The Bushes will stay at a huge
home on the water (it should be in Architectural
Digest!!) -- it's owned by a wealthy Argentine
who has lent it to the Uruguayan on several
occasions, most recently for the visit of French
President Mitterand.
Punta del Este is a seaside resort town that has
practically no full time residents. It became
well known in 1967 after its film festival and has
since hosted many international meetings and
conferencesas well as art and entertainment. The entire
town is made of (magnificent) summer homes of
the Uruguayan and Argentine elite. When we were
there, the place was all but deserted. At the time
of POTUS' visit, the throngs of vacationers will
be just arriving for their summer vacations which
last through February.
Darwin came to Punta del Este in 1833 to study
the species of Goriti Island, off the coast
of Punta del Este. He live in Uruguay for
three months. He told his friend Signor Marconi,
an Italian engineer, that the area had a "good
magnetic field" and Marconi later developed the
telegraph in Punta del Este.
16
PREADVANCE NOTES -- ARGENTINA
Good Contact:
Stephen Thompson -- US Embassy
A very friendly man who is a good source of info for
both the Embassy Greeting as well as business/trade
info for the Joint Session speech. I gave him the
heads up that you'd call him.
Michael Canning -- US Embassy, Cultural Officer
Benny Giron -- Very helpful and eager to please.
He should be sending you some brochures that we
didn't have time to get on the preadvance. Also at
the Embassy.
NOTE: Upon arrival at the Aeroparque (municipal airport),
POTUS will be presented with a key to the city. No
remarks are planned, but check on this again.
Sites of interest in the city:
-- "July 9 Boulevard" is claimed to be world's largest;
the main thoroughfare of "B.A." (Why is July 9
an important date for Buenos Aires?)
-- At one circle of "July 9" stands a monument that is
exactly like the Washington monument here in D.C. --
only slightly smaller. It's dedicated to Don
Pedro Mendoza. (check him out)
-- B.A. is the second city in the formation of the
country of Argentina.
-- Recoleta Cemetery is their equivalent of Arlington,
though the people buried there are not solely
servicemembers. Many famous Argentines, writers,
artists, political figures, etc, have been laid to
rest there.
Wreath laying ceremony at the Plaza of San Martin
POTUS will lay a wreath at the monument of San
Martin, the George Washington of Argentina. No
remarks are required, though you will want to use
San Martin in your other speeches. He is a very
important figure to the Argentines.
San Martin is actually buried in the Main
Cathedral of Buenos Aires, which is down the street
about 1/2 a block from the Casa Gobierno (joint session
speech site). Both the Casa Gobierno and the
Cathedral line the Plaza of May 25th (why is this
date important?) The Plaza is a big site for rallies
and other public gatherings.
17
Suggested Reading:
"The History of Argentina" by David Rock.
This book covers the history of the country, from
its earliest beginnings through the Falklands
War. It's supposed to be an extremely easy
read and a good source for you. Should be
available at the OAS library or the Library
of Congress.
Note from LCDR Justice from the Mil Office:
An Argentine Navy sailing vessel and training ship is the
sister ship of the Coast Guard training vessel Barque Eagle.
Both were war reparations from Germany.
QUOTES FOR SPEECHES
"Sarmiento" is supposedly the most quotable Argentine. He
was a civilian President at the time of Lincoln and
is known as the "Abraham Lincoln of Argentina".
**Mike Butler at the Embassy is known by his colleagues
as "Mr. Quote". Call him.
Address to the Joint Session of the Argentine Congress
Wednesday, December 5 @ 3:50 p.m.
In the Chamber of Deputies
The address is scheduled to the Prompted, however
check with Dave on this. The only available space
for the Prompter is also where they want to put
the press pool. Keller told me that Dave and Marlin
will have to work this out.
Approximately 500 attendees -- 300 Senators and
Deputies; 70 member of diplomatic corps; the
Cabinet; Supreme Court justices; etc.
Two speakers -- the President of the Senate who
will open the session and introduce the President,
and POTUS. POTUS introduced by Argentine Vice
President Duhalde.
See photos of chamber interior as well as pamphlets. Though
they are in Spanish, you can probably figure them out.
18
The National Seal It is dominant all over the government
buildings. In the Chambers in particular, it appears on
the front of the podium, above the podium, and in the
stained glass ceiling. See the brochure for a picture.
The stripes in it are the blue sky and the white sky
of the flag.
The hands are the union of the Argentine people
The staff holding the cup symbolizes Freedom; adapted
from symbols of the French Revolution.
The sun symbolizes the birth of a new country.
The laurels mean Glory.
State Dinner
Wednesday, December 5 @ 9:00 p.m.
Informal, as they will just have viewed a rodeo
and cultural demonstration. (Riding, roping,
throwing bolos, precision horse drill team
of the federal police, traditional costumes)
500 attendees
American Embassy Community Greeting
Thursday, December 6 @ 8:50 a.m.
The U.S. Ambassador's Residence Ballroom
500 attendees -- embassy personnel, Argentine staff,
families
The Residence is the largest in the world -- it's even
larger than the WH residence. Vice President Quayle
stayed there on his Latin American trips; the Bushes will
RON there as well. Check on Bush as VP stays.
Other Presidents who stayed there:
-- A plaque at the Main Entrance commemorates the
February 26, 1960 visit of Eisenhower (a private
visit after his Presidency)
-- A plaque at the top of the stairs commemorates the
November 30 - December 2, 1936 visit of FDR.
19
PREADVANCE NOTES -- CHILE
Embassy Greeting
Friday, December 7 @ 9:25 a.m.
Ambassador's Residence, back patio
300 - 400 attendees; Embassy personnel, Chilean
staff, families.
Contacts:
Dan Johnson Embassy Admin Officer
Dave Lugers Site Control Officer
We spent only a few minutes at the Residence and
none of the Embassy personnel had much to offer
by way of humor and color. I told both Dan and
Dave to be thinking of such things in case you
call them. Ambassador Gillispie is quite the
dashing figure and I was told that there is
humor there. Call his wife for more on that.
AMCHAM Breakfast
Friday, December 7 @ 7:55 a.m.
Holiday Inn Crowne Plaza Hotel Ballroom -- a ballroom
is a ballroom is a ballroom. Totally nondescript.
Could have been Toledo.
Both Presidents will attend. JB III TBD.
Mrs. Bush TBD.
1000 attendees
TelePrompted
POTUS introduced by AMCHAM President Ed Tillman,
CEO of Exxon in Chile
2 speeches precede POTUS (one is Tillman). 55 minutes
total time there. POTUS doesn't eat.
7 people at head table (8 if Mrs. B. attends) :
President Aylwin [AIL win], 4 AMCHAM directors,
Ambassador Gillispie, JB III.
Elementary school choir will sing the anthems.
Contacts:
Embassy: ** Rick Villalobos, Econ Section **
Nancy Mason, Political Section
AMCHAM:
M. Isabel Jaramillo
Paulina Dellafiori
Phone: 486 830
20
NOTES:
Chileans think they'll be the first Latin American
country to sign a Free Trade Agreement with the US
through the Enterprise for the Americas Initiative.
Mexico is slated to be first, but the Chileans
are optimistic.
-- Stay Away From: 1. The Kennedy Amendment prohibiting
Chile from purchasing any military apparatus from the
US. Senator Kennedy sponsored the bill after the
Letalier bombing in D.C. the US asked Chile to
locate and charge the perpetrators and to date they
have not done SO. Major source of tension in US-C
relations.
2. The Generalized System of Preferences. The
privilege was taken away from Chile in 1987 due to
labor abuses. They say they have corrected this and
want the GSP back, but the US refuses.
3. Chilean grapes.
-- Nancy Mason and Rick Villalobos will send you examples
of recent cooperative ventures and examples of
cooperation in business; a story on early US-C business;
humor. Probably should give them a call to remind them.
-- GOOD NEWS: Chile is now back in OPIC. OPIC is again
insuring US firms in Chile.
Also, Chile has been returned a clean bill of
health after hoof and mouth disease problems in their
cattle. They can now export to the US. Whoopee
State Dinner
La Moneda Palace, Plaza de Naranjas
(Plaza of Oranges -- courtyard filled with orange
trees)
Thursday, December 6 @ 9:15 p.m.
Toast
Will just have participated in a ceremonious arrival
at the palace with honor guards, review of troops,
and fanfare. The Palace Guards are units of the
National Police (Carabineros). The square outside
the Palace will be lined with US and Chilean flags.
Attendees TBD
21
The Palace was designed by the Italian Tosca in 1786. It's
been restored but is still essentially the same
except for
one room that has been removed. The palace was bombed
during many coups. Pinochet was holed up there and
committed suicide
in the Palace -- that room has since been removed.
The national slogan of Chile appears ALL OVER the place;
from the wrought iron work of the Palace courtyards to the
marble over the podium at the joint session speech. It
reads,
translated: "If not by reason, then by force". Yikes.
Gustavo Delgado is a young Foreign Service Officer at the
Embassy who tried to get me some brochures on the history
etc
of the Palace. He was unsuccessful but left a message at
our hotel that he'd try again and send it up. You may want
to give him a call.
See photos of the Palace and the courtyard.
Address to Joint Session of Congress
Valparaiso -- Congreso Nacional, Salon de Honor
Approximately 900 attendees -- 47 Senators, 120
Deputies, plus various members of the diplomatic
corps, Cabinet Ministers, etc.
This will be a special session of the Congress. The
President of the Senate will open the session with 5
minutes of rituals and will introduce POTUS with the
ringing of the bell. (President of the Senate is
Gabriel Valdes, the highest ranking legislator.)
On dais: Rafael Eyzaguirre, Secretary of the Senate
Carlos Loyola, Secretary of the Chamber of Dep's
Jose Antonio Viera Gauo, President of Chamber of
Deputies
Gabriel Valdes, President of the Senate
The Congress building is brand spanking new -- in fact,
they were still laying carpet when we visited. It is
a huge, gigantor monument of marble columns that seems
extremely out of place in poverty-stricken Valparaiso.
Even across the street, the building is surrounded by
ordinary shops and slums coming down from the hills.
See photos. It had an eerie feeling about it, as most
government buildings of this sort are surrounded by
others like it. See photos.
POTUS will get out of the limo about 1/2 a block from
the building and walk a route lined with honor
guardsmen from the Naval Academy. He'll review the troops
and be greeted on the steps by the Senators and Deputies.
Again, their national slogan reads : "If not by reason,
then by force." It is emblazoned in marble above
the podium. In this instance it appears under a seal
of sorts with a condor and a huemol (deer like animal).
The condor represents the aggressive side, while the
huemol represents the tranquil and peaceful side.
POTUS will chopper over to Valparaiso from Santiago. It
might be worth it to mention the truly beautiful Chilean
countryside. It's really quite remarkable -- greenery like
you've never seen; rolling meadows filled with wildflowers;
farmland; beautiful mountain ranges. Save for a few bill-
boards here and there, it's virtually unmarred. The Andes
Mountain Range is visible in the far distance, with snow
capped peaks.
Other notes on Chile:
-- King Juan Carlos of Spain just completed a state
visit to Santiago the day we arrived. The papers
applauded the success of the visit -- on the issues
of trade, etc. Apparently the two countries have
just recently reestablished good relations -- last time
Juan Carlos visited, he was snubbed by Pinochet who
left the city to visit his troops in the hills and never
met with the King.
-- North of Santiago begins a desert which continues to the
border. Some spots are said to have never seen rain --
ever. No life can exist there. Some areas get 1/16th
inch of moisture per year, mostly from mist coming off
the ocean.
-- La Iglesia de San Francisco de Assisi is the best
known church in Santiago. We drove by it, but
unfortunately I wasn't able to catch a photo for you.
It's the oldest church in the country and also houses
a museum of the monks. Nancy Mason said she would
send a brochure on its significance; again, you may
want to call her to remind her if you're interested.
-- The national hero of Chile, believe it or not, is named
Bernardo O'Higgins. (His father was Irish!) He is
considered to be the equivalent of Bolivar, Artigas,
San Martin, etc. -- the George Washington of Chile.
In fact, he fought with San Martin (of Argentina).
Definitely check into this man.
23
PREADVANCE NOTES -- VENEZUELA
Contacts:
Bill Millen
Political Counselor at the US Embassy. This man
is an expert on the country and can answer just
about any question you may have.
Helen Clare Hudson (Phone ext. 425)
Economic Counselor at the US Embassy. Call her
for info on cooperative efforts in trade and
business.
Paula Thiede (Phone ext. 330)
Also at the Embassy. A very nice woman who
maintains files of newspaper clippings.
Color and Things to Check on:
-- Bill Millen thought that POTUS may have visited Venezuela
in the 1960's when he was an oilman in Texas. He supposedly
visited the city of Maracaibo, in western Venezuela near
Colombia.
-- Jeb Bush once lived in Venezuela. Were any of his kids
born there?
-- POTUS visited V. in 1981 (?) for Bettencourt's funeral.
-- Bettancourt [BET anne coor] is a good man to quote
- POTUS and President Perez met when both were President-
elect's. State visit of Perez in spring '89. POTUS calls
Perez often -- they have a good relationship.
NOTE: Avoid mentioning Perez's relationship with his wife. He is
married, but pretty openly has a mistress. She travels with
him in his entourage. Mrs. Perez has does not hide her
displeasure.
-Embassy Greeting
Ambassador's residence -- on large patio
overlooking the city
Saturday, December 8 @ 2:20 p.m.
Approximately 300 attendees -- embassy personnel,
Venezuelan employees, families; possibly
some Americans from the area.
Contact Bill Millen for inside humor. I was told
that jokes about the erratic water supply and
telephone service would be appreciated. Also,
they have been waiting for several months (since
May?) for their Ambassador-designate to be
confirmed. It's become a running joke of
sorts --it's hoped that he'll be on post by the
time of POTUS' visit. If not, this has definite
joke potential. If he is there, you could still
use it.
-- Caracas is surrounded by huge, green, lush mountains.
They really are quite beautiful and it's difficult to
escape a grand view of them. Avila National Park is a
big deal to the people of Caracas; it's a landmark. It's
a huge park high up in the hills and mountains with
trails, waterfalls, and eating spots -- also a preserve
of sorts, with birds and butterflies which are protected
"El Avila" Nat'l Park separates Caracas from the
Caribbean Sea. (Note: Venezuela has a heavy Caribbean
influence, from the people to the reggae music. It's
often said the V. is more a part of the Caribbean
region than Latin America.)
The Ambassador's residence (RON Site and site of Embassy
Greeting) is just below the park
-Business Luncheon
Caracas Hilton Ballroom -- a ballroom is a
ballroom is a ballroom. Totally nondescript.
Saturday, December 8 @ 12:35 p.m.
1,000 attendees
14 on the dais
Brief Remarks; TelePrompted
25
-- Teresa Careno was a major opera diva from Venezuela. She
toured the world and was very popular internationally.
Across the street from the Hilton (Luncheon site) is a huge
theater and arts complex in her honor. It is one of the
best known buildings in Caracas.
-- State Dinner
O
Friday, December 7 @ 7:40 p.m.
O
Site: La Casona, President Perez' private home.
It's still undecided whether it will be outdoors on
the large patio (tented) or the indoor dining room.
Pantheon -- Tomb of Bolivar and other liberators
No remarks, but this would be great to use in business
luncheon or embassy greetings, as POTUS will have just
participated in a wreathlaying ceremony there. Note that a
statue of Bolivar stands in D.C. down the street from State.
Other liberators at the Pantheon include: Garantia,
Jose Gregorio Monegas, Francisco Miranda. It is a beautiful
monument with splendid murals and frescoes; high vaulted
ceilings and stained glass windows. The paintings represent
scenes of the liberation of Venezuela.
26
CARACAS:
-- Capital of Venezuela
-- Birthplace of "Libertador Simon Bolivar"
-- Founded on July 25, 1567 by the Conqueror Diego
de Losada. He named it Santiago de Leon de
Caracas. The Lion (de leon) is quasi-official
symbol of the city.
-- The city of Caracas was mapped 9 years after
founding. It was exactly 24 square blocks with the
25th as it's center plaza. Today this area is the
colonial section of the city.
VENEZUELA:
-- Discovered by Columbus (just like the US) in 1498 on
his third voyage to the New World. First explored by
Alonso de Ojeda in 1499 -- according to legend, he
named it "Venezuela" or "Little Venice".
-- Achieved independence in 1821. Begun by Francisco
de Miranda and completed by Simon Bolivar.
SITES YOU MAY WANT TO MENTION:
-- Iglesia de San Francisco: (Church of S.F.) Church and
convent built in 1575. Simon Bolivar prayed here often.
It was in this church that he was given the title "liber-
tador" (liberator) and made Captain General of the V.
armies. His state funeral took place here in 1813. It's
open to public tours.
-- El Capitolio Nacional: (The Nat'l Capital). Next to the
legislative palace. Topped by a gleaming dome. Built in
1877. Now used only for the inauguration of the
President.
Inside are 52 paintings depicting historical V. events.
The most magnificent is on the ceiling of the dome; it
shows Bolivar winning the V. Battle of Independence at
Carabobo. The Declaration of Independence is housed
here.
-- Consejo de Municipal: Old seminary built in 1641. In
the center are fountains with the symbol of the city, the
lion. The Declaration of Independence was signed here in
July 5, 1811.
-- Casa Natal: Bolivar's birthplace.
-- La Catedral: (the Cathedral) Mirrors the tumultous
history of Caracas. It was destroyed by earthquakes
in 1641, 1766, and 1812 and rebuilt each time. In the
Cathedral are the crypts of the Bolivar family.
Famous Artists:
Marisol
Jacobo Borges
Jesus Soto
Mateo Manaure
Alejandro Otero
Carlos Cruz Dias
All are internationally known.
28
JOINT SESSION, BRAZILIAN CONGRESS
BRASILIA
MONDAY, DECEMBER 3, 1990
11:15 A.M.
Add: Governor of the Federal District
OBRIGADO [OH-BREE-GAH-THO]. MR. PRESIDENT OF THE
NATIONAL CONGRESS [SENATOR NELSON CARNEIRO]; MR.
PRESIDENT OF THE CHAMBER OF DEPUTIES [DEPUTY PAES DE
ANDRADE]; SENATOR RONAN TITO; DEPUTY RICARDO FIUZA; MR.
ACTING ACTING>
PRESIDENT OF THE SUPREME COURT [DR. NERI DA SILVEIRA];
ESTEEMED PAPAL NUNCIO, AND MEMBERS OF THE DIPLOMATIC
CORPS; MR. ARCHBISHOP [DOM FREIRE FALCAO]; HONORABLE
MINISTERS OF STATE; HONORABLE DEPUTIES AND SENATORS.
IT IS A PRIVILEGE TO JOIN YOU IN THIS GREAT HALL OF
DEMOCRACY.
MY THOUGHTS TODAY COULD HAVE NO BETTER FORUM THAN
YOUR NATIONAL CONGRESS -- MY WORDS, NO BETTER AUDIENCE
THAN THE PEOPLE OF BRAZIL. WE MEET AT AN EXTRAORDINARY
MOMENT IN OUR SHARED HISTORY. A TIME OF SERIOUS
CHALLENGES AND IMPORTANT CHOICES, THAT CALLS FOR MUTUAL
RESPECT, CANDOR, AND COLLECTIVE WILL.
- 2 -
I HAVE MET WITH MANY LATIN AND CARIBBEAN LEADERS.
AND BEYOND ANY SINGLE ISSUE WE'VE DISCUSSED, ALL OF US
HAVE BEEN GALVANIZED BY A NEW ERA OF HOPE AND
OPPORTUNITY THROUGHOUT THE AMERICAS -- ESPECIALLY HERE
IN BRAZIL.
BRAZIL TODAY IS POISED TO ENTER THE 21ST CENTURY AS
A LEADER AMONG NATIONS -- PIONEERING BOLD NEW ECONOMIC
REFORMS, AND CONSOLIDATING ITS DEMOCRACY. THAT IS A
TRIBUTE TO YOUR DYNAMIC NEW PRESIDENT, FERNANDO COLLOR
DE MELLO [CALL-ER DE MELLOW] -- A LEADER WHOSE
FRIENDSHIP AND VISION I VALUE AND RESPECT -- A MAN WHO
REPRESENTS A NEW GENERATION OF DEMOCRATIC LEADERSHIP
NOW SWEEPING ACROSS LATIN AMERICA.
- 3 -
PRESIDENT COLLOR [CALL-ER] HAS SPOKEN ELOQUENTLY
OF BRAZIL'S RIGHTFUL PLACE AT THE TABLE OF THE FIRST
WORLD AND I AGREE. I BELIEVE IT IS TIME, IN FACT,
TO END THE FALSE DISTINCTIONS BETWEEN THE FIRST WORLD
AND THE THIRD WORLD THAT HAVE TOO LONG LIMITED
POLITICAL AND ECONOMIC RELATIONS IN THE AMERICAS. LET
US INSTEAD SPEAK OF THE NEW WORLD.
THIS HEMISPHERE HAS ALWAYS FOUND STRENGTH IN
DIVERSITY. AFTER ALL, HERE I STAND, ADDRESSING
PORTUGUESE-SPEAKERS IN ENGLISH, BECAUSE OF AN ITALIAN
SAILING ON BEHALF OF SPAIN, GUIDED BY THE THEORIES OF A
THEOLOGIAN IN FRANCE, FIVE CENTURIES AGO.
WHAT WE HOLD IN COMMON TRANSCENDS BORDERS AND
TRANSLATES INTO ANY LANGUAGE. THE NATIONS OF THE
AMERICAS ALL STRUGGLED AND GAINED INDEPENDENCE FROM THE
OLD WAYS OF THE OLD WORLD -- ENDED THE INJUSTICE OF
SLAVERY AND COLONIALISM AND BUILT REPUBLICS OF
PROMISE AND RENEWAL AROUND THE DIGNITY AND POWER OF THE
INDIVIDUAL, AND THE RULE OF LAW.
- 4 -
NOW, AS WE APPROACH THE 500TH ANNIVERSARY OF
COLUMBUS' DISCOVERY OF THE AMERICAS -- AND THE ARRIVAL
OF CABRAL'S PORTUGUESE FLEET IN BRAZIL -- THIS IS OUR
MOMENT TO CHART THE COURSE FOR THE NEW WORLD -- A
COURSE OF FREEDOM, DEMOCRACY, AND PROSPERITY. WE HAVE
ALL WITNESSED IN WONDER THE DAWN OF DEMOCRACY IN
EASTERN EUROPE -- BUT IN THE AMERICAS, WE TOO HAVE SEEN
EXTRAORDINARY POLITICAL AND ECONOMIC CHANGE THAT IS
TRANSFORMING THE FACE OF THIS HEMISPHERE -- NOWHERE
MORE so THAN IN THIS GREAT NATION OF BRAZIL. SOME MAY
CLAIM OUR FRONTIERS HAVE ALL BEEN EXPLORED. I SAY TO
YOU TODAY: WE HAVE JUST BEGUN TO PRESS FORWARD, TOWARD
THE REAL PROMISE OF THE AMERICAS.
- 5 -
TERRITORIES MAY END AT BORDERS, BUT MANKIND'S
CAPACITY FOR PROGRESS KNOWS NO BOUNDS. CONTINENTS MAY
END AT THE WATER'S EDGE, BUT HUMAN POTENTIAL KNOWS ONLY
THOSE LIMITS SET BY HUMAN IMAGINATION. THE AMERICAS'
ROLE IN THE WORLD IS NOT DEFINED BY GEOGRAPHY. IT IS
DEFINED BY ITS PEOPLES AND ITS IDEALS. I BELIEVE WE
ARE APPROACHING A NEW DAWN IN THE NEW WORLD.
OUR THINKING MUST BE BOLD -- OUR WILL, RESOLUTE.
OUR CHALLENGE NOW, IS TO HEW OUT OF A WILDERNESS OF
COMPETING INTERESTS, A NEW KIND OF OPPORTUNITY IN THE
AMERICAS. TO FULFILL THE NEW WORLD'S DESTINY, ALL OF
THE AMERICAS AND THE CARIBBEAN MUST EMBARK ON A VENTURE
FOR THE COMING CENTURY: TO CREATE THE FIRST FULLY
DEMOCRATIC HEMISPHERE IN THE HISTORY OF MANKIND. THE
FIRST HEMISPHERE DEVOTED TO THE DEMOCRATIC IDEAL -- TO
UNLEASH THE POWER OF FREE PEOPLES, FREE ELECTIONS, AND
FREE MARKETS.
- 6 -
TWO WEEKS AGO IN PRAGUE, I SPOKE TO A PEOPLE THAT
HAS PAID DEARLY FOR ITS FREEDOMS. I TALKED ABOUT A NEW
COMMONWEALTH OF FREEDOM, BASED ON FOUR KEY PRINCIPLES.
THIS HEMISPHERE ALREADY SHARES THESE CONVICTIONS: AN
UNSHAKABLE BELIEF IN THE DIGNITY AND RIGHTS OF MAN; THE
CONVICTION THAT JUST GOVERNMENT DERIVES ITS POWER FROM
THE PEOPLE; THE BELIEF THAT MEN AND WOMEN EVERYWHERE
MUST BE FREE TO ENJOY THE FRUITS OF THEIR LABOR; AND
THAT THE RULE OF LAW MUST GOVERN THE CONDUCT OF
NATIONS. EVERY NATION THAT JOINS THIS COMMONWEALTH OF
FREEDOM ADVANCES US ONE STEP CLOSER TO A NEW WORLD
ORDER. WE MUST PERSIST UNTIL THIS VICTORY FOR FREEDOM
AND DEMOCRACY IS WON COMPLETELY.
IT IS ALSO WITHIN OUR POWER TO MAKE THIS HEMISPHERE
THE LARGEST FREE-TRADING PARTNERSHIP OF SOVEREIGN
NATIONS IN THE WORLD. FROM THE NORTHERN-MOST REACHES
OF CANADA TO THE TIP OF CAPE HORN, WE SEE A FUTURE
WHERE GROWING OPPORTUNITY, THE POWER OF TECHNOLOGY AND
THE BENEFITS OF PROSPERITY ARE DEVELOPED AND SHARED BY
ALL.
- 7 -
IN MANY CASES, CHANGE WILL NOT COME EASILY.
ECONOMIES NOW DEPENDENT ON PROTECTION AND STATE
REGULATION MUST OPEN TO COMPETITION. THE TRANSITION,
FOR A TIME, WILL BE PAINFUL. MANY IN THE AMERICAS WILL
HAVE TO MAKE SERIOUS ADJUSTMENTS TO COMPETE WITH
SOUTHEAST ASIA, AND TO TAKE ADVANTAGE OF THE EUROPEAN
MARKET AFTER 1992. BUT WE'RE CONFIDENT THAT SOLUTIONS
WILL BE FOUND -- BY BRAZILIANS, BY CHILEANS, BY
VENEZUELANS -- BY ALL OF THE AMERICAS. AND THE
RESULTS -- GROWING ECONOMIES AND SOUND CURRENCIES --
WILL BRING UNPRECEDENTED PROSPERITY AND GROWTH FOR ALL
OUR CITIZENS TO SHARE.
THAT WAS THE VISION OF THE ENTERPRISE FOR THE
AMERICAS INITIATIVE WE ANNOUNCED LAST JUNE. IT CALLS
FOR A MAJOR HEMISPHERIC EFFORT TO UNIFY THE NEW WORLD
IN THE THREE KEY AREAS OF TRADE, INVESTMENT, AND DEBT.
- 8 -
IN TRADE, OUR FIRST PRIORITY SHOULD BE TO PROMOTE
LONG-TERM GROWTH -- AND THE MOST EFFECTIVE FIRST STEP
IS THE SUCCESSFUL CONCLUSION OF THE URUGUAY ROUND, NOW
IN ITS FINAL STAGES IN BRUSSELS. AN END TO EXPORT
SUBSIDIES ON AGRICULTURAL GOODS AND NEW OPENINGS FOR
DEVELOPING COUNTRY EXPORTS MEAN NEW MARKET
OPPORTUNITIES -- AND A HIGHER STANDARD OF LIVING -- FOR
THE FARMER IN PARA [PA-RAH], THE TEXTILE WORKER IN
SANTA CATARINA, AND THE ENGINEER IN SAO PAULO.
BUT THE URUGUAY ROUND AND BILATERAL TRADE
AGREEMENTS ARE ONLY FIRST STEPS. THE SOUTHERN CONE
COMMON MARKET, NOW DEVELOPING UNDER THE LEADERSHIP OF
PRESIDENT COLLOR [CALL-ER] AND HIS COLLEAGUES IN
NEIGHBORING COUNTRIES, IS ANOTHER MAJOR STEP TOWARD THE
WORLD'S FIRST HEMISPHERIC FREE TRADE ZONE.
- 9 -
TO PROMOTE NEW INVESTMENT IN THE AMERICAS, THE
DEAD HAND OF STATE CONTROL MUST BE LIFTED. WE MUST
ALLOW ENTREPRENEURS THE FLEXIBILITY TO ADAPT, CREATE,
AND PRODUCE. so, AS WE CHART A COURSE FOR THE FUTURE
OF THE NEW WORLD, LET US HOLD FIRMLY IN OUR MINDS AN
UNSHAKABLE CONVICTION IN THE IMPORTANCE AND BENEFIT OF
FREE ENTERPRISE. LET US WORK TOGETHER SO THAT ANY MAN
OR WOMAN WHO WANTS TO LAUNCH A NEW ENTERPRISE VIEWS THE
STATE AS AN ALLY, NOT AS AN OBSTACLE -- AND ALL WHO
PURSUE THE FRUITS OF THE FREE MARKET SEE OTHER NATIONS
NOT AS THREATS TO SOVEREIGNTY, BUT AS OPPORTUNITIES FOR
MUTUAL PROSPERITY.
- 10 -
INDIVIDUALS CANNOT SUCCEED IF GOVERNMENT IS
BURDENED BY DEBT. so THE THIRD LEG OF OUR ENTERPRISE
FOR THE AMERICAS INITIATIVE IS A COMPREHENSIVE
COMMITMENT TO WORK WITH BRAZIL AND OTHERS IN LATIN
AMERICA TO RESTRUCTURE U.S. OFFICIAL DEBT. OUR NEW
APPROACH TO OFFICIAL DEBT WILL COMPLEMENT COMMERCIAL
DEBT RESTRUCTURING THROUGH THE BRADY PLAN. I
UNDERSTAND THE IMPORTANCE TO BRAZIL, AND TO THE
INTERNATIONAL FINANCIAL COMMUNITY, OF REACHING A NEW
AND EFFECTIVE AGREEMENT ON COMMERCIAL DEBT. GLOBAL
CAPITAL FLOWS WILL BE VITAL TO YOUR DEVELOPMENT -- AND
WE ARE READY TO ASSIST WHEREVER POSSIBLE.
WE'VE SUBMITTED A REQUEST TO OUR CONGRESS FOR THE
AUTHORITY TO IMPLEMENT OUR PROPOSALS. BUT WE KNOW THAT
REAL SOLUTIONS MUST INVOLVE ALL OF US IN THE AMERICAS.
THAT'S WHY WE ENVISION A PERMANENT PARTNERSHIP BETWEEN
ALL THE NATIONS OF THE AMERICAS, TO CONFRONT CHALLENGES
THAT KNOW NO BORDERS.
- 11 -
WE ENVISION A HEMISPHERE WHERE A COLLABORATIVE
COMMITMENT IS SHARED TO PROTECT OUR ENVIRONMENTAL
LEGACY. THERE CAN BE NO SUSTAINED ECONOMIC GROWTH
WITHOUT RESPECT FOR THE ENVIRONMENT.
THAT'S WHY THE ENTERPRISE FOR THE AMERICAS
INITIATIVE JOINS ENVIRONMENTAL PROTECTION WITH
BILATERAL DEBT RELIEF -- NOT AS A CHALLENGE TO NATIONAL
SOVEREIGNTY, BUT AS AN AFFIRMATION OF SHARED
INTERNATIONAL INTERESTS. I ENCOURAGE BRAZIL AND OTHER
CREDITOR NATIONS TO CONVERT DEBT INTO FUNDS FOR THE
ENVIRONMENT.
THE ENTIRE WORLD STANDS IN AWE OF BRAZIL'S UNIQUE
ENDOWMENT OF WILDLIFE, TREES, AND PLANTS IN THE AMAZON
AND THE ATLANTIC RAIN FORESTS. NO NATION ON EARTH IS
AS RICH IN FLORA AND FAUNA, WITH ALL OF THEIR POTENTIAL
TO PROVIDE FUTURE MEDICINES AND FOODS, CROPS AND
FIBERS.
- 12 -
YOUR HOSTING OF THE UNITED NATIONS CONFERENCE ON
ENVIRONMENT AND DEVELOPMENT IN 1992 PLACES BRAZIL IN A
POSITION OF TRUE GLOBAL LEADERSHIP. WE HOPE THAT
CONFERENCE WILL MARK THE CULMINATION OF A NUMBER OF
INITIATIVES TO PROTECT AND WISELY UTILIZE THE WORLD'S
RESOURCES.
WE ALSO HOPE THAT A FRAMEWORK CONVENTION ON CLIMATE
CHANGE WILL BE READY FOR SIGNING IN BRAZIL IN 1992.
BUT A FOREST CONVENTION WILL BE MORE REALISTIC AND
COMMAND MORE SUPPORT IF ALL THE BENEFITS OF SUSTAINABLE
FOREST MANAGEMENT AND CONSERVATION ARE RECOGNIZED --
NOT JUST THEIR CONTRIBUTION TO CLIMATE, BUT ALSO
FACTORS LIKE BIODIVERSITY, SOIL EROSION, CLEAN AIR AND
CLEAN WATER. FOR THAT REASON, WE SUPPORT A
FREESTANDING CONVENTION RECOGNIZING FORESTS' MANY
BENEFITS, NEGOTIATED SEPARATELY.
- 13 -
WE ALSO ARE CHALLENGED TO MAKE OURS A HEMISPHERE
WHERE SOVEREIGN NATIONS ARE JOINED IN COLLECTIVE
DETERMINATION TO ERADICATE THE DISEASE OF DRUGS. THE
TIME FOR BLAME IS LONG OVER. WE IN THE U.S. RECOGNIZE
WE MUST DO MORE TO REDUCE DEMAND. AND YOU UNDERSTAND
THAT THE SPREADING TENTACLES OF THE DRUG TRADE THREATEN
DEMOCRATIC SOCIETY.
PRESIDENT COLLOR [CALL-ER] HAS TAKEN A STRONG
POSITION AGAINST DRUGS FOR THE SAKE OF YOUTH HERE IN
BRAZIL I KNOW FULL WELL IT IS A DEMAND PROBLEM AS WELL
AS A SUPPLY PROBLEM FOR MY COUNTRY -- AND I PLEDGE THE
FULL EFFORTS OF MY GOVERNMENT TO CONTINUE TO DAMPEN
DEMAND. THERE IS ONLY ONE ANSWER TO THE DRUG PROBLEM
IN THIS HEMISPHERE -- THAT IS TO DEFEAT THESE NARCO-
TRAFFICKERS WHO PREY ON OUR CHILDREN -- ONCE AND FOR
ALL.
- 14 -
AND FINALLY, IN THIS ERA OF GREAT CHALLENGES
AROUND THE WORLD, WE WANT THE WESTERN HEMISPHERE TO BE
A MODEL TO THE WORLD FOR SECURITY, STABILITY, AND
PEACE. TOGETHER, LET US ENSURE THAT THIS HEMISPHERE
STANDS UNITED TO PREVENT THE SPREAD OF NUCLEAR WEAPONS
OR NEW, MORE DANGEROUS BALLISTIC MISSILES ANYWHERE IN
THE WORLD. WE CONTINUE TO URGE ALL COUNTRIES IN THIS
HEMISPHERE TO BRING THE NON-PROLIFERATION TREATY OF
TLATELOLCO [TUH-LA-TE-LOCO] INTO FORCE. I WANT TO
APPLAUD, AS MANY OTHER NATIONS HAVE DONE, THE RECENT
ANNOUNCEMENT BY BRAZIL AND ARGENTINA THAT TOGETHER THEY
WILL ENSURE THAT NO NUCLEAR PROGRAM IN THEIR COUNTRIES
IS USED FOR ANYTHING BUT PEACEFUL PURPOSES. WE APPLAUD
YOUR DECISION TO MOVE FORWARD ON FULL-SCOPE NUCLEAR
SAFEGUARDS.
EQUALLY, JUST AS BRAZIL MADE VALIANT CONTRIBUTIONS
TO THE CAUSE OF FREEDOM IN WORLD WAR II, YOU WERE AMONG
THE FIRST TO IMPLEMENT SANCTIONS AGAINST IRAQ. I
SALUTE YOUR ROLE IN THE WORLD COMMUNITY'S ALMOST
UNIVERSAL CONDEMNATION OF IRAQ'S AGGRESSION.
- 15 -
THE MESSAGE I BRING YOU TODAY IS A HOPEFUL ONE -- A
VISION OF A FREE, DEMOCRATIC, AND PROSPEROUS
HEMISPHERE, NOW WITHIN OUR REACH. OUR NATIONS LONG AGO
ACHIEVED INDEPENDENCE FROM THE OLD WORLD. NOW LET US
WORK TOWARD A NEW DECLARATION OF INTERDEPENDENCE AMONG
THE AMERICAN NATIONS OF THE NEW WORLD.
IF, AS JOSE BONIFACIO ONCE SAID, "BRAZILIANS ARE
ENTHUSIASTS OF A BEAUTIFUL IDEAL," LET US NOT LIMIT THE
NEW WORLD'S POTENTIAL WITH OLD THINKING. AFTER THE
HALF MILLENNIUM WE HAVE HAD IN THIS HEMISPHERE TO FORM
OUR NATIONS AND FIND OUR WAY, LET THE NATIONS OF THE
AMERICAS NOW FULFILL THEIR COMMON POTENTIAL.
STANDING ON THIS CENTRAL PLATEAU, SOON TO BE THE
SEAT OF GREAT DECISIONS, PRESIDENT JUSCELINO KUBITSCHEK
SAID, "I LOOK ONCE AGAIN AT THE FUTURE OF MY COUNTRY,
AND SEE THIS DAWN WITH UNYIELDING FAITH AND UNLIMITED
CONFIDENCE IN ITS GREAT DESTINY."
MY FRIENDS, MY NEIGHBORS -- LET THE NEW DAWN COME
TO BRAZIL AND TO THE NEW WORLD. LET US FULFILL THE
PROMISE OF THESE GREAT LANDS.
- 16 -
THANK YOU VERY MUCH. AND MAY GOD BLESS THE
BRAZILIAN PEOPLE.
# # #
FACTCHECK copy #1
11.26.90
= get translations
(Lange/Cawley)
Bouquet
November 26, 1990
Marcel (Translations)
5:15 p.m.
301 986-9568
[BRAZIL.DOC]
PRESIDENTIAL REMARKS:
JOINT SESSION, BRAZILIAN CONGRESS
BRASILIA
MONDAY, DECEMBER 3, 1990
11:15 A.M.
[[ Obrigado [oh-bree-GAH-tho]. Mr. President of the National
Congress [Senator Nelson Carneiro] ; Mr. President of the Chamber
Robert
of Deputies [Deputy Paes de Andrade ; Senator welcome speech];
Blau
USE USE-B
Deputy welcome speech] ; Mr. President of the Supreme Court [Dr.
Neri da Silveira]; esteemed Papal Nuncio, and members of the
diplomatic corps; Mr. Archbishop [Dom Freire Falcao] ; Honorable
Ministers of State; Honorable Deputies and Senators. ]] It is a
privilege to join you in this great hall of democracy -- and an
Love
Mark Brazil
honor that so many members could be here today. I deeply
ARAICHT 9407
appreciate your presence.
My thoughts today could have no better forum -- my words, no
better audience -- than here, in Brasilia. A city that so aptly
symbolizes the energy and aspirations of a great people -- the
bold and expansive spirit of a great nation -- and the promise of
a bright future for all of the Americas.
We meet at an extraordinary moment in our shared history. A
time of serious challenges and important choices, that calls for
mutual respect, candor, and collective will.
X
X
X
X
ouncil of the Americas
I have met with many Latin and Caribbean leaders. And
remarks 5-22-90
throughout the range of issues we've discussed, all of us, I
think, have been seeking for a way to express what we see as a
new, more mature relationship among the Americas.
2
President Collor, who represents a new breed of leadership
states leader
now sweeping across Latin America, is Brazil's first popularly-
elected President in almost three decades. Your gubernatorial
and legislative elections are another brilliant achievement in
Markrazil Lore
Brazilian democracy -- and I congratulate you and all Brazilians.
XRA
Sta
647-9407
President Collor has spoken eloquently of Brazil's rightful
place at the table of the First World -- and I agree.
I believe it is time, in fact, to end the false distinctions
between First World and Third World that have too long
compromised political and economic relations in the Americas.
Let us instead speak of the New World.
This hemisphere has always found strength in diversity.
After all, here I stand, addressing Portuguese-speakers. in
Encyclo.
Americana
English, because of an Italian sailing on behalf of Spain, guided
Ency
by the theories of theologian in France, five centuries ago.
Ailly"
What we hold in common transcends borders and translates
into any language. The nations of the Americas all struggled and
(?)
gained independence from the old ways of the Old World -- ended
the injustice of slavery -- and built republics of promise and
renewal around the dignity and power of the individual, the rule
of law, and the rights of man.
Now, as we approach the 500th anniversary of Columbus'
)state drafts
2
discovery of the Americas -- and the arrival of Cabral's
Brazil
:Colossus
Portuguese fleet in Brazil -- this is a moment to look to the
Continent,
P-153
future of the New World. For while we have all witnessed in
wonder the dawn of democracy in Eastern Europe, in the Americas,
3
too, we have heard the rolling thunder of political and economic
revolution. And while some may claim our frontiers have all been
explored, I contend we have just begun to press forward, toward
the real promise of the Americas.
Ideals endure. Territories may end at borders, continents
may end at the water's edge, but human potential knows only those
limits set by human imagination. The Americas' role in the world
is not defined by geography. The sun is not setting in the West.
I believe we are approaching a new dawn in the New World.
To be true to our forefather's legacy -- to be worthy of
these continents' cost in sweat, blood and courage -- our
thinking must be as bold -- our dreams, as brave -- our will, as
resolute. Our challenge now, is to hew out of a wilderness of
competing interests a new kind of opportunity in the Americas.
To truly fulfill the New World's freedoms, all of the
Americas and the Caribbean must now embark on a venture for the
coming century: to create the first fully free, fully democratic
hemisphere in the history of mankind. The first hemisphere
wholly devoted to freedom -- to free speech, free trade, free
elections, and free markets unfettered by the state.
It is within our power to make this hemisphere the largest
trading center of sovereign nations in the world. From the
northern-most reaches of Canada to the tip of Argentina, we see a
future where growing opportunity, the power of technology and the
benefits of prosperity are developed and shared by all.
4
Such a vision will often mean redefining institutions --
rethinking their relationship with the people they exist to
serve. In many cases, change will not come easily. Economies
now dependent on protection and state regulation must open to
competition. The transition, for a time, will be painful. But
the results -- growing economies and sound currencies -- will
bring unprecedented prosperity and stability.
Latin America's economic adjustment is already in motion.
states
Exports are rising. Fiscal reform is underway. In eight months,
President Collor and this Congress have driven down inflation,
Lore
Mark Brazil
started to free the private sector from government control and
subsidy, and begun to open the economy to greater competition and
vitality -- the unparalleled prosperity of the open market.
This new model of Latin American development presents a
challenge to traditional political culture. Many of the Americas
will have to make serious adjustments to compete with Southeast
Asia, and to take advantage of the European Market after 1992.
But we're confident that solutions will be found -- by
Brazilians, by Chileans, by Peruvians ---- by all of the Americas.
That was the spirit of the Enterprise for the Americas
EFAI 6-27-90 Fact sheet
Initiative we announced last June. It calls for a major
hemispheric effort to unify the New World in the three key areas
of trade, investment, and debt.
In trade, our first priority should be to promote long-term
growth -- and the most effective first step is the successful
conclusion of the Uruguay Round, now in its final stages in
State's 10-30-90, Tain
draft
5
Geneva. An end to export subsidies and new openings for
stades.90 draft,P 10 1 gam
developing country exports mean new market opportunities -- and a
higher standard of living -- for the farmer in Mato Grosso, the
textile worker in Parana, and the engineer in Sao Paulo.
But the Uruguay Round and Bilateral Trade Agreements are
only first steps. The Southern Cone Common Market, now
developing under the leadership of President Collor and his
colleagues in neighboring countries, is a major step toward the
world's first hemispheric free trade zone.
For investment in the Americas, the dead hand of state
control must be lifted. We must allow entrepreneurs the
flexibility to adapt, create, and produce -- to provide
meaningful and well-paying jobs for your workers -- and to lift
Latin America's peoples out of poverty. Brazilians know what
foreign investment can do -- just witness its role in the
dynamism of Sao Paulo, and the $10 billion of U.S. investment
already in this country.
Free markets work. They create widespread prosperity. And
the reason is as simple as it is profound. Every man and woman
is capable of success. By promoting the potential of the
individual over the power of government -- by giving people the
means to chart their own destiny -- the frontiers of the Americas
will stretch on forever. Like Brazil's mythical bandeirantes,
atin Am A Cultural
tistory by German who opened "new paths never trod, never known," we, too must be
428
,K treinieqas Astate -Marklore-9407
willing to move in new directions.
But individuals cannot succeed if government is burdened by
6
debt. That's why the third leg of our Enterprise for the
Initiative
Americas is a comprehensive commitment to work with Brazil and
states
10 9am
others in Latin America to restructure U.S. official debts on
the
concessionary terms. These swaps can free up substantial
resources for use in environmental projects.
Our new approach to official debt will complement commercial
debt restructuring through the Brady plan. I understand the
importance to Brazil, and to the international financial
community, of reaching a new and effective agreement on
commercial debt. Global capital flows will be vital to your
development -- and we are ready to assist wherever possible.
I
We've submitted a request to our Congress for the authority
to implement our proposals. But we know that real solutions must
be collective. That's why, for every shared concern, we envision
2
a permanent partnership between all the nations of the Americas,
to confront challenges that know no borders.
(oned in
statting)
We envision a hemisphere where a genuinely collaborative
commitment is shared to protect our environmental legacy. There
can be no sustained economic growth without respect for the
environment -- and there may be no greater impediment to
protecting the environment than poverty. The linkage is crucial.
1
EFAI Factsheet
That's why the Enterprise for the Americas Initiative links
bilateral debt relief with environmental protection -- not as a
challenge to national sovereignty, but as an affirmation of
2
shared international interests. Here in Brazil, a consortium of
2) Barbara organizations has presented a proposal to the government for such
Tobias,
Embassy Brasilia
Officer for Environment Science
beg Bank
on wow. on
7
a debt-for-nature swap. I encourage other creditor nations to
convert debt into funds for the environment.
Brasilia Toning
+
The Declaration of Brasilia in 1989 reflected the wisdom and
dedication of this region to wise stewardship of your unique
US
for so
natural resources. And your hosting of the United Nations
Conference on Environment and Development in 1992 places Brazil
in a position of true global leadership.
[
We hope an agreement to protect the world's forests will be
ready for signing at that Conference. We believe more progress
will be made if the forest agreement is negotiated apart from the
Climate Change convention -- which, in focusing on carbon
sequestration, only relates to one of the many benefits forests
have for the planet. ]
The wise management of the Americas' rich endowment of
forests and wildlife will be an important test. For the sake of
present and future generations, we have an opportunity to make
the Western hemisphere a model for sustainable development.
We also are challenged to make ours a hemisphere where
sovereign nations are joined in collective determination to
Kby
eradicate the disease of drugs. The time for blame is long over.
David Tell,
We in the U.S. recognize we must do more to reduce demand. And
1sst chief
you understand that the spreading tentacles of the drug trade
FStaff-
INDCP
threaten democratic society.
467-9600
President Collor has taken a strong position against drugs
for the sake of youth here in Brazil -- and I pledge the full
for John
Walters)
efforts of my government to continue to dampen demand. There is
* by David Tell, Asst chief of Staff,
8
INDCP
only one answer to the drug problem in this hemisphere. It is
467-9600
the answer we reach together.
And finally, in this era of great challenges around the
world, we want the Western hemisphere to be a model to the world
for security and stability -- in regional arms control, in
nuclear and chemical non-proliferation, and in collective
/
commitment to facing down aggression. Just as Brazil made
tate's country
eport, P -301 valiant contributions to the cause of freedom in World War II,
Mark
2
Lore
you were among the first to implement sanctions against Iraq. I
razil desk officer State
647-9407 applaud your role in the world community's universal condemnation
Johnson Don x4512 NSC
of Iraq's aggression.
But underlying all of the issues we face together is a more
fundamental challenge, whose success will affect them all.
We must usher in an economic revolution the equal of the
political revolutions we've witnessed. We must make ours a
hemisphere where economic competition is embraced -- not as a
threat to privilege, but as the key to prosperity.
Where neighbors prosper, neighborhoods flourish. And just
as all of the American nations struggled to avoid the
interventions of Old World government in their affairs, so should
we give that spirit rein in every individual.
Let us hold firmly in our minds an unshakable conviction in
the importance and benefit of free enterprise. From Boston to
Minneapolis to Manaus ?
Buenos Aires, from Labrador to Lima, let us together enact the
unwritten equivalent of an economic Bill of Rights -- so that any
man or woman who wants to launch a new enterprise views the state
9
as an ally, not an obstacle -- and all who pursue the fruits of
the free market see other nations not as threats to sovereignty,
but as opportunities for mutual prosperity.
We long ago achieved independence from the Old World. Now
let us work toward a new declaration of interdependence among the
American nations of the New World.
This vision of a completely free, completely democratic
hemisphere -- the promise of the New World -- is now within our
reach. If, as Jose Bonifacio once said, "Brazilians are
itates
10-30-90m
enthusiasts of a beautiful ideal," let us not limit the New
raft, 18
World's potential with old thinking. After the half millenium we
have had in this hemisphere to form our nations and find our way,
let us now make our relations the world's inspiration.
With our hearts and minds and hands, let us meet a challenge
worthy of our heritage -- worthy of this land of boundless
frontiers and limitless opportunity.
Standing on this central plateau, soon to be the seat of
3X
of
Quotes
great decisions, President Juscelino Kubitschek said, "I look
from Luzia
lttural Aff.
once again at the future of my country, and see this dawn with
5 Embassy,
unyielding faith and unlimited confidence in its great destiny."
Bras,
My friends, my neighbors -- let the new dawn come to the New
World. Let us fulfill the promise of these great lands.
Thank you very much. And may God bless the Brazilian
people.
# # #
Selevee
( 4 Dole Yeutter
Ag repsfine from 44 groups of Jumps
it
rep
CABLE FROM COMMERCE (Brazil desk, 377-3871)
LARRY FERRIS
OUTLINES THE COLLOR GOVTS ANNOUNCEMENT
OF ECONOMIC
ACTION
UNCLASSIFIED
INCOMING
RESTRUCTURING
DEPARTMENT OF COMMERCE
COPY
TELEGRAM
PAGE 01 OF 04
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ø3731ø DCC323
28/2006Z
SPECIALIZATION.
ACTION: 4332 (01)
EXPOSURE OF BRAZILIAN INDUSTRY TO INTERNATIONAL
INFO: AMAD (01) (02) 4122 (01) 4330 (01) 6410 (01) 104(01)
COMPETITION, ALLOWING A MORE FAVORABLE POSITIONING OF
BE4 (01) 6850(01) CEN (01) REV (01) OPS (01) 105 (01)
BRAZIL IN FOREIGN MARKETS VIA MPROVED QUALITY AND
ALA(01) 3134(01)
PRICES AND BY BOOSTING COMPETITION WITHIN SECTORS
28/2009Z A0 AMA (TOTAL COPIES: 017)
CHARACTERIZED BY OLIGOPOLY.
RR RUEHDC
INCREASING FIRMS' CAPACITY TO DEVELOP TECHNICAL
DE RUEHBR #7115/01 1792004
CAPACITY THROUGH SELECTIVE TARIFF PROTECTION AND THE
ZNR UUUUU ZZH
SPREADING OF INNOVATIVE TECHNOLOGY.
R 282004Z JUN 98
FM AMEMBASSY BRASILIA
4. THE ROLES OF GOVERNMENT AND OF DOMESTIC AND FOREIGN
TO RUEHC/SECSTATE WASHDC 3505
NVESTMENT:
RUEHDC/USDOC WASHDC
BT
THE MAIN ROLE OF GOVERNMENT IS PROMOTING
UNCLAS SECTION 01 OF 06 BRASILIA 07115
MACROECONOMIC STABILITY AND RESTORING AN INVESTMENT
CLIMATE WITH CLEAR AND STABLE RULES. THE GOB SHOULD
USDOC FOR 4332/1EP/WH/OSA/SCD/BR
DEDICATE ITSELF EXCLUSIVELY TO BASIC FUNCTIONS. IT
SHOULD STOP ABSORBING NATIONAL SAVINGS AND FREE UP
E.0.12356: N/A
PRIVATE CAPITAL TO FULFILL THE MAIN ROLE IN
TAGS: ECON, ETRD, BR
PRODUCTION. THE INCREASING CAPACITY OF THE PRIVATE
SUBJECT: "NEW BRAZILIAN INDUSTRIAL AND FOREIGN
SECTOR TO PRODUCE GOODS/SERVICES SUCH AS ENERGY,
TRADE DIRECTIVES" EMBASSY'S INFORMAL SUMMARY OF
TRANSPORTATION, PORTS, WAREHOUSING, STEEL,
GOB DOCUMENTS
PETROCHEMICALS, FERTILIZERS, ETC. WILL REDUCE THE ROLE
OF GOVERNMENT IN THESE AREAS. THE GOB WILL CONCENTRATE
REF: BRASILIA 07910
ON BASIC EDUCATION AND SCIENTIFIC DEVELOPMENT.
1. INTRODUCTION -- THE COLLOR GOVERNMENT BEGAN ITS
DOMESTIC PRIVATE CAPITAL WILL BE STIMULATED IN OUR
TERM IN OFFICE WITH THE IMPLEMENTATION OF A RADICAL
NEW DEVELOPMENT PHASE, IN WHICH THE DEMANDS OF
STABILIZATION PROGRAM, AIMED AT ARRESTING THE
COMPETITION WILL GROW WITH INTERNATIONALIZATION AND
HYPERINFLATIONARY PROCESS AND CREATING STABLE
LOWER PROTECTION. LARGE INDUSTRIAL GROUPS WILL
CONDITIONS FOR A RESUMPTION OF GROWTH.
ASSOCIATE WITH SMALLER, TECHNOLOGICALLY-ADVANCED FIRMS
AND WITH FOREIGN FIRMS. WITH MACROECONOMIC STABILITY
THE INITIAL ADJUSTMENT PHASE SHOULD NOT BE SEEN AS
AND RENEWED GROWTH, BRAZIL WILL ATTRACT FOREIGN
AN END IN ITSELF, BUT AS A PROCESS FOR THE EXECUTION OF
INVESTMENT. OBSOLETE SECTORAL RESTRICTIONS WILL BE
DEVELOPMENT POLICY, REDEFINING THE ROLE OF GOVERNMENT,
ELIMINATED. PREJUDICE AGAINST FOREIGN CAPITAL WILL BE
DECREASING ECONOMIC/REGIONAL/SOCIAL DIFFERENCES,
IMPROVING WAGES, AND PROTECTING THE ENVIRONMENT.
ELIMINATED AND FOREIGN FIRMS WILL ENJOY THE LEGAL
TREATMENT THEY HAVE ENJOYED FOR THE PAST 30 YEARS A
THE IMPLEMENTATION OF A POLICY FOR INDUSTRY AND
TREATMENT WHICH IS STABLE, LIBERAL, AND COOPERATIVE.
FOREIGN TRADE THE CENTRAL COMPONENT OF RENEWED
FOREIGN DIRECT INVESTMENT WILL SERVE AS AN IMPORTANT
DEVELOPMENT ON A NEW FOUNDATION -- CONSTITUTES AN
FACTOR IN BOOSTING THE RATE OF OVERALL INVESTMENT, IN
INDISPENSABLE TOOL TO CONSOLIDATE AND LEND A SENSE OF
INCREASING INTERNATIONAL TRADE, AND IN IMPROVING ACCESS
CONTINUITY TO THE ONGOING ECONOMIC STABILIZATION PROCESS.
TO TECHNOLOGY.
2.
OBJECTIVES THE NEW INDUSTRIAL AND TRADE POLICY
5.
MECHANISMS: THE NEW POLICY WILL DEMAND MUTUAL
AIMS AT INCREASING PRODUCTIVITY. INDUSTRIAL AND
PLANNING BETWEEN GOVERNMENT AND INDUSTRY -- WITH
COMMERCIAL MODERNIZATION ALSO INVOLVES IMPLANTING
SPECIAL EMPHASIS ON SCIENCE AND TECHNOLOGY. THE MAIN
MODERN STRUCTURES FOR PRODUCTION AND CONSUMPTION OF
MECHANISMS EMPLOYED WILL BE:
GOODS/SERVICES THROUGHOUT THE NATION VIA THE SPREAD OF
NEW TECHNOLOGIES.
AN INDUSTRIAL COMPETITIVENESS PROGRAM, AND
3.
STRATEGY THE NEW INDUSTRIAL AND TRADE POLICY
-- A BRAZILIAN PROGRAM OF QUALITY AND PRODUCTIVITY
WILL REQUIRE GOVERNMENT INVOLVEMENT WHICH WILL BE
FUNDAMENTALLY DIFFERENT FROM THAT OF THE LONG-STANDING
THE INDUSTRIAL COMPETITIVENESS PROGRAM WILL HAVE
IMPORT SUBSTITUTION MODEL. STARTING NOW, WE MUST
TWO BASIC AIMS. THEY INCLUDE THE DEVELOPMENT OF
INCREASE OUR RELIANCE ON MARKET FORCES. THIS STRATEGY
HIGH-TECH INFORMATICS, FINE CHEMICALS,
INCLUDES:
BIOTECHNOLOGY, PRECISION INSTRUMENTS, AND NEW
MATERIALS. ALSO, INDUSTRIAL AND SERVICE SECTORS MUST
REDUCING TARIFF PROTECTION AND LIMITING THE
BE RESTRUCTURED so AS TO MEET INTERNATIONAL PRICE AND
INDISCRIMINATE AND NON-TRANSPARENT USE OF GOVERNMENT
QUALITY STANDARDS.
INCENTIVES AND SUBSIDIES.
MERGERS WILL BE ENCOURAGED IN THOSE SECTORS
INDUCING THE COMPETITIVE RESTRUCTURING OF
CHARACTERIZED BY RAPID TECHNOLOGICAL DEVELOPMENT, HIGH
INDUSTRY THROUGH IMPROVED USE OF CREDIT AND
LEVELS OF TECHNOLOGY, AND HIGH CAPITAL CONCENTRATION IN
INFRASTRUCTURE TECHNOLOGY.
ORDER TO EFFECT ECONOMIES OF SCALE AND TO BOOST
INTERNATIONAL COMPETITIVENESS. CAPITAL GOODS WILL
STRENTHENING SECTORS WITH COMPETITIVE POTENTIAL
MERIT SPECIAL ATTENTION AND SPECIALIZATION WILL BE
AND DEVELOPING NEW SECTORS BY MEANS OF INDUSTRIAL
ENCOURAGED so AS TO BE COMPATIBLE WITH BRAZIL'S GLOBAL
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INTEGRATION. BY 1994, THE PROGRAM SHOULD RESULT IN
OF A FOREIGN TRADE BANK OF PRIVATE CONTROL, WITH THE
SUFFICIENTLY INCREASED COMPETITIVENESS SO THAT SPECIAL
GOAL OF FINANCING IMPORTS AND EXPORTS.
TARIFF PROTECTION CAN BE DROPPED. ENVIRONMENTAL
CONCERNS WILL BE TAKEN INTO ACCOUNT IN THE
EXPORT POLICY: EXPORT POLICY IS AN EXTREMELY IMPORTANT
IMPLEMENTATION OF THE INDUSTRIAL COMPETITIVENESS PROGRAM.
ELEMENT OF THE INDUSTRIAL AND FOREIGN TRADE POLICY OF
THE NEW BRAZIL, FOCUSING ON PRODUCTS OF GREATER VALUE
BRAZILIAN PROGRAM FOR QUALITY AND PRODUCTIVITY:
AND THE IDENTIFICATION OF NEW MARKETS FOR BRAZILIAN
THIS PROGRAM AIMS AT SUPPORTING THE MODERNIZATION OF
PRODUCTS:
BRAZILIAN FIRMS BY INCREASING THE COMPETITIVENESS OF
GOODS/SERVICES, INCLUDING IMPROVED MANAGEMENT METHODS,
1) A FINANCING MECHANISM FOR LONG-CYCLE PRODUCTS,
BETTER USE OF HUMAN RESOURCES, ETC.
SUCH AS CAPITAL GOODS INCLUDING A FOREIGN TRADE BANK;
INSTRUMENTS:
GENERAL POLICY INSTRUMENTS WILL BE
2) SIMPLIFICATION OF EXPORT PROCEDURES;
USED PRIMARILY, THUS ELIMINATING THE NEED FOR
PROJECT-BY-PROJECT ANALYSES. IN APPLYING SELECTIVE
3) MODERNIZATION OF THE EXPORT SECTOR
INSTRUMENTS, TOTAL TRANSPARENCY WILL BE THE RULE.
INFRASTRUCTURE (PORTS, RAILROADS, SILOS, ETC.);
FINANCING POLICY:
GOVERNMENT FINANCING WILL ONLY
4) REVISION OF THE TAX STRUCTURE.
BE USED SELECTIVELY, AND DIRECTED EXCLUSIVELY FOR
INVESTMENTS NEEDED TO RESTRUCTURE THE ECONOMY, TO
MPORT POLICY: ON MARCH 15, 1990, THE GOVERNMENT
DEVELOP TECHNOLOGY, AND EXPAND FOREIGN COMMERCE. THE
TOOK DECISIVE MEASURES WITH RESPECT TO BRAZILIAN IMPORT
PRIVATE SECTOR MUST ADAPT TO FILL THE ROLE PREVIOUSLY
POLICY. QUANTITATIVE CONTROLS IN THE FORM OF COMPANY
OCCUPIED BY THE GOB.
IMPORT PROGRAMS WERE ELIMINATED. STARTING JULY 1, A
NEW IMPORT POLICY WILL EMPLOY TARIFFS AS THE SOLE
FINANCING FIXED CAPITAL INVESTMENTS:
GOVERNMENT
BARRIER.
FINANCIAL AGENCIES WILL SELECTIVELY SUPPORT THOSE
SECTORS WHICH REQUIRE A PRO-COMPETITIVE REORGANIZATION,
CURRENT TARIFFS -- WHICH NOW AVERAGE 35 PERCENT,
RESTRUCTURING, OR PRODUCTIVE MODERNIZATION. MECHANISMS
WITH LEVELS FROM 0 PERCENT TO 105 PERCENT ARE
MUST BE ADOPTED TO OBTAIN PRIVATE RESOURCES TO PROVIDE
ADMITTEDLY HIGH. WE PLAN THEREFORE TO ATTAIN BY 1994
THE NEEDED RESTRUCTURING OF THE BRAZILIAN ECONOMY. FOR
TARIFFS BETWEEN 0 PERCENT AND 40 PERCENT, WITH AN
FINANCING INDUSTRIAL MODERNIZATION, CREDIT, SECURITIES
AVERAGE TARIFF OF 20 PERCENT. THE TARIFF LEVEL OF 40
SALES, AND GUARANTEES WILL BE MADE AVAILABLE ON A
PERCENT WILL BE USED FOR PRODUCTS WHICH REQUIRE
PREFERENTIAL BASIS.
TEMPORARY PROTECTION. FOR NEW PRODUCTS FROM HIGH-TECH
INFANT INDUSTRIES, THERE CAN BE ESTABLISHED HIGHER
AS REGARDS MACHINERY/EQUIPMENT, IT WILL BE
TARIFF LEVELS OF AN EXCEPTIONAL CHARACTER, BUT THESE
NECESSARY TO:
WILL ALWAYS BE TEMPORARY.
REVISE THE PROCEDURES OF FINAME TO MODIFY THE
MACHINES, EQUIPMENT, PARTS, COMPONENTS, AS WELL
REGISTRATION CRITERIA FOR PRODUCTS AND SUPPLIES. LOWER
AS RAW MATERIALS AND INTERMEDIATE PRODUCTS, NOT
LEVELS OF NATIONAL CONTENT WILL BE REQUIRED, BUT
PRODUCED IN BRAZIL, WITH TARIFFS LESS THAN 20 PERCENT,
SATISFACTORY LEVELS OF DOMESTIC VALUE-ADDED WILL STILL
WILL BE LOWERED TO ZERO BEGINNING JULY 1, 1990.
BE NECESSARY.
-- IN THE SECOND HALF OF 1990, THE CURRENT TARIFF
SPECIFIC FORMS OF SUPPORT WILL BE PROVIDED FOR
STRUCTURE WILL CONTINUE IN EFFECT. CHANGES WILL BE
THE CONSOLIDATION OF SMALL AND MEDIUM FIRMS WHICH ARE
LIMITED TO CORRECTING TARIFFS WHICH CONFER EXCESSIVE
SPECIALISTS IN PARTS/COMPONENTS SUPPLY AND ARE
PROTECTION.
TECHNOLOGICALLY DYNAMIC.
NEW SECTOR STUDIES, WHICH WILL SERVE AS A BASE
FINANCING TECHNOLOGICAL CAPABILITY: FOR INVESTMENTS IN
FOR ESTABLISHING TARIFF REDUCTIONS FOR THE PERIOD
TECHNOLOGICAL DEVELOPMENT, OFFICIAL AGENCIES WILL
1991-1994, WILL BE ANNOUNCED AT THE END OF THE YEAR.
FURNISH THE FOLLOWING FORMS OF RESOURCES:
THERE WILL BE LEGISLATION TO PROTECT NATIONAL
A) RISK CAPITAL FOR INFANT HIGH-TECH INDUSTRIES,
INDUSTRY FROM UNFAIR TRADE PRACTICES, SUCH AS "DUMPING".
INCLUDING PROJECTS ON THE DRAWING BOARDS;
RAISING THE TECHNOLOGICAL CAPABILITY OF INDUSTRY:
ONE OF THE PREREQUISITES FOR INCREASING THE CAPABILITY
B) SHARED RISK FUNDS -- TO SUPPORT THE PROCESS OF
OF INDUSTRY IS AN INFRASTRUCTURE OF SUPPORT FOR
INNOVATION, INCLUDING EXPENDITURES PRIOR TO MARKETING
SCIENTIFIC AND TECHNOLOGICAL DEVELOPMENT WHICH INCLUDES:
OF AN INNOVATION;
A) CREATING AND STRENGTHENING NETWORKS OF
C) FUNDS TO SUPPORT TECHNICAL RESEARCH .. TO
TECHNOLOGICAL INFORMATION TO INTEGRATE DIVERSE LOCAL
FACILITATE THE CREATION OF A NATIONAL R&D POLICY; AND
INSTITUTIONS AND ALSO TO DEVELOP A PERMANENT AWARENESS
OF FOREIGN TECHNOLOGICAL INFORMATION;
D) FUNDS TO SUPPORT THE FORMATION AND DEVELOPMENT
OF HUMAN RESOURCES.
B) MODERNIZATION OF RESEARCH INSTITUTES,
LABORATORIES, UNIVERSITY RESEARCH CENTERS, AND THE
FOREIGN TRADE FINANCING: WITH THE GOAL OF INCREASING
EVENTUAL CREATION OF NEW INSTITUTES IN EMERGING FIELDS;
COMPETITION FOR NATIONAL COMPANIES THROUGH INCREASED
TRANSACTIONS WITH FOREIGN MARKETS, A MIXED COMMISSION
C) TRAINING ACTIVITIES, INCLUDING: (1) THE
WILL PRESENT WITHIN 6g DAYS A PROPOSAL FOR THE CREATION
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EDUCATION OF TECHNICIANS AND WORKERS OF A QUALITY AND
POLICY;
QUANTITY CONSISTENT WITH THE GOALS OF THE INDUSTRIAL
AND FOREIGN TRADE POLICY; (11) RETRAINING OF
111) TO NEGOTIATE CHANGES IN SPECIFIC RULES AND
RESEARCHERS; (111) THE RETRAINING OF SPECIALIZED WORKERS;
EVALUATE THE STRATEGY EVOLVING UNDER THE POLICY:
D) SIMPLIFYING TECHNOLOGY-LICENSING PROCEDURES AND
IV) TO UTILIZE THE PURCHASING POWER OF STATE
REVISING QUANTITATIVE LIMITS ON ROYALTIES.
COMPANIES AND OTHER ECONOMIC ACTORS OF GREAT INFLUENCE;
AND
THE VARIABLES INVOLVED IN THE PROCESS OF
TECHNOLOGICAL INNOVATION BY BUSINESSES -- THE COSTS,
V) TO MAKE COMPATIBLE THE ACTIONS OF THE VARIOUS
RISKS, TIME, AND COMPLEXITY -- REQUIRE SPECIAL
GOVERNMENT AGENCIES IN INDUSTRIAL DEVELOPMENT.
TREATMENT. THE OBJECTIVE IS TO SUBSTANTIALLY INCREASE
THE PRIVATE-SECTOR PARTICIPATION R AND D EXPENDITURES;
DEFENSE OF COMPETITION: WITH THE OBJECTIVE OF
INCLUDING:
PROMOTING AMPLE DEREGULATION OF ECONOMIC ACTIVITY,
LEGAL AND ADMINISTRATIVE INSTRUMENTS WILL BE CREATED TO
A) INCREASE THE USE OF SUBCONTRACTING BY BIG FIRMS
TO COMBAT THE EXCESSIVE VERTICAL INTEGRATION OBSERVED
RESTRAIN PRACTICES CONTRARY TO THE FREE FUNCTIONING OF
NOWADAYS;
THE MARKET.
B) INCREASE R AND D EXPENDITURES BY COMPANIES,
THE ANTITRUST LEGISLATION (LAW 4,137/62) WHICH
ESPECIALLY IN NEW TECHNOLOGY SECTORS;
ALSO INSTITUTED THE ADMINISTRATIVE COUNCIL OF ECONOMIC
DEFENSE -- IS INSUFFICIENT AND ANACHRONISTIC IN THE
C) PROMOTE THE USE OF UNIVERSITIES AND RESEARCH
FACE OF THE CURRENT BRAZILIAN SITUATION.
INSTITUTES FOR APPLIED RESEARCH;
THE MINISTRY OF JUSTICE WILL PRESENT IN THE NEXT
D) CREATE NATIONAL CONSORTIA AND PARTICIPATION IN
FEW DAYS A PROPOSAL FOR REVISING CURRENT LEGISLATION,
INTERNATIONAL CONSORTIA FOR COOPERATIVE RESEARCH.
INCLUDING THE ESTABLISHMENT OF THE DUTIES OF THE
NATIONAL DEPARTMENT OF ECONOMIC DEFENSE AND PROTECTION,
FOLLOWING THE EXAMPLE OF THE DEVELOPED COUNTRIES,
TO PROMOTE FREE COMPETITION.
GOVERNMENT PURCHASING POWER WILL BE USED TO IMPLEMENT
THIS POLICY VIA SPECIFICATIONS FOR MATERIALS AND
WE SHALL SEEK TO AVOID:
EQUIPMENT. DEMAND FOR SECTORS OF HIGH TECHNOLOGY WILL
LIKEWISE BE GENERATED, INCLUDING THE PROMOTION OF
1) BARRIERS TO ENTRY OR OBSTACLES TO FREE
RESEARCH PROJECTS WITH PUBLIC AND PRIVATE PARTICIPATION.
COMPETITION IN LOCAL, REGIONAL, OR NATIONAL MARKETS, BY
MEANS OF:
UNIFORM TECHNICAL AND BUSINESS CRITERIA FOR
SUPPLIERS WILL BE PROMOTED. RESULTS OF TECHNICAL
A) FIXING THE PRICE OF MERCHANDISE LOWER THAN ITS
EVALUATIONS WILL BE SHARED, AS WILL THE RESULTS OF
COST;
TESTS AND QUALITY CERTIFICATIONS AFFECTING PERSONNEL,
PROCESSES, AND PRODUCTS.
B) DIFFERENTIAL TREATMENT OF BUYERS, CONTROLLING
THE SYSTEM OF DELIVERY TO CONSUMERS THROUGH
THE NATIONAL SYSTEM OF CATALOGING MATERIAL AND
DISTRIBUTORS AND MIDDLEMEN;
SERVICES WILL DEVELOP A METHODOLOGY FOR CLASSIFYING
GOODS AND SERVICES, AND DEFINE CODES AND STANDARDIZED
C) IMPEDING COMPETITIVE ACCESS TO IMPUTS, RAW
DESCRIPTIONS FOR EACH MATERIAL AND SERVICE AVAILABLE IN
MATERIALS, OR EQUIPMENT, AS WELL AS DISTRIBUTION
THE COUNTRY.
CHANNELS.
ADMINISTRATION: SECTORAL POLICY EXECUTIVE GROUPS
2) THE FORMATION OF AGREEMENTS, CONTRACTS, OR
WILL BE CREATED TO COORDINATE THE POLICY'S
ALLIANCES BETWEEN SELLERS, AIMED AT:
IMPLEMENTATION WITH INDUSTRY AND OTHER NON-GOB INTEREST
GROUPS. THEY WILL USE THE FOLLOWING GUIDELINES:
A) ARTIFICIALLY FIXING PRICES OR QUANTITIES SOLD
OR PRODUCED;
A) SEEK CONSISLTENCY IN APPLICATION AT THE
INDUSTRIAL LEVEL;
B) ESTABLISHING CONTROL OF REGIONAL MARKETS BY
FIRMS OR GROUPS OF FIRMS;
B) MAKE THE GOALS AND ACTIONS IN THE SECTORAL
PROGRAM OF INDUSTRIAL COMPETITIVENESS AND THE SECTORAL
C) CONTROLLING, IN DETRIMENT TO COMPETITION,
PROGRAM OF QUALITY AND PRODUCTIVITY; AND
DISTRIBUTION OR SUPPLY NETWORKS.
C) MONITOR THE EXECUTION OF THE PROGRAMS AND THE
3) THE FORMATION OF TRUSTS, THROUGH DIRECT OR
APPLICATION OF THE INSTRUMENTS OF THE POLICY.
INDIRECT STOCKHOLDER CONTROL, AS WELL AS THE
ESTABLISHMENT OF COMMON ADMINISTRATION BETWEEN
THE RESULTS OF THE INDUSTRIAL AND FOREIGN TRADE
COMPANIES, SEEKING TO INHIBIT FREE COMPETITION.
POLICY DEPEND ON THE COORDINATION OF THE FOLLOWING
GOVERNMENT DIRECTIVES:
4) THE PROMOTION OF AGREEMENTS BETWEEN BUSINESSES
OR PERSONS WITH AN INTEREST IN THE ACTIVITIES OF THE
1) TO AFFORD FLEXIBILITY AND COHERENCE IN APPLYING
BUSINESSES, UNDERCUTTING FREE COMPETITION.
THE POLICY;
LEGISLATION: DECREE 2,433 OF MAY 19, 1988, STILL
II) TO ESTABLISH SYSTEMIC COORDINATION OF THE
IN EFFECT, INSTITUTED THE INDUSTRIAL POLICY OF THE
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PREVIOUS GOVERNMENT. THE DECREE UTILIZED FISCAL
BENEFITS AND INCENTIVES AND CREATED INADEQUATE SPECIAL
REGIMES.
PROVISIONAL MEASURE 158, TRANSFORMED INTO LAW 8,032
OF APRIL 12, 1990, ELIMINATES THE APPLICABLE EXEMPTIONS
AND REDUCTIONS ON IMPORT TAXES AND ON INDUSTRIALIZED
PRODUCTS, WHICH WERE THE PRINCIPAL INSTRUMENTS INCLUDED
IN DECREE 2,433.
IN 1984, LAW 7,232 WAS APPROVED, LAYING OUT THE
NATIONAL INFORMATICS POLICY, WHICH REGULATES THE
PRODUCTIONS AND IMPORTATION OF COMPUTER GOODS, IN
NORMATIVE ACTS OF THE SEI (THE NATIONAL INFORMATICS
SECRETARIAT). IN 1987 LAW 7,646 WAS APPROVED,
GOVERNING THE SPECIFIC AREA OF "SOFTWARE".
BECAUSE OF COMMON INPUTS AS WELL AS COMMON
TECHNICAL BACKGROUND, COMPUTER GOODS (INCLUDING
EQUIPMENT FOR INDUSTRIAL AUTOMATION),
TELECOMMUNICATIONS PRODUCTS, AND CONSUMER ELECTRONIC
GOODS FORM THE SO-CALLED ELECTRONIC COMPLEX (EC), WHICH
MUST BE TREATED TOGETHER. SEPARATE POLICIES FOR EACH
OF THE EC SEGMENTS IS NO LONGER FEASIBLE, AS OCCURRED
IN THE PAST WITH THE INDEPENDENT AND CONFLICTING ACTION
OF SEI, SUFRAMA, AND MINICOM.
EC IS TODAY THE MOST IMPORTANT SECTOR IN THE AREA
OF HIGH TECHNOLOGY. IT AFFECTS EVERY SECTOR OF THE
ECONOMY, PROVING THAT THE CURRENT INFORMATICS POLICY
HAS TOTALLY RUN ITS COURSE. SIMPLY MAKING THE EXISTING
CONTROLS MORE FLEXIBLE -- BESIDES BEING INSUFFICIENT TO
DEAL WITH CURRENT INDUSTRIAL DEVELOPMENT COULD HAVE
THE OPPOSITE EFFECT FROM THAT DESIRED.
FOR ALL OF THESE REASONS, EC -- INCLUDING
INFORMATICS SHOULD BE TREATED IN THE CONTEXT OF THE
INDUSTRIAL AND FOREIGN TRADE POLICY AS PROPOSED FOR
HIGH-TECH SECTORS. THUS, THE LEGAL INSTRUMENTS TO BE
FORMULATED AND PROPOSED WITHIN 60 DAYS BY THE MINISTRY
OF ECONOMY, SEEKING THE IMPLEMENTATION OF THE
INDUSTRIAL AND FOREIGN TRADE POLICY, SHOULD REPLACE NOT
ONLY DECREE 2,433, BUT ALSO LAWS 7,322 AND 7,646, AND
WILL PROVIDE THE PROCEDURES AND TIMETABLES WHICH WILL
ASSURE THE ORGANIZED TRANSITION FROM THE OLD TO THE NEW
LEGAL REGIME.
THE CODE OF INTELLECTUAL PROPERTY INSTITUTED BY LAW
5,772/71 ALSO SHOULD BE REVISED IN ACCORDANCE WITH
THESE DIRECTIVES. IN THIS SENSE, THE GOVERNMENT SHOULD
PROPOSE BY MID-1991 BEFORE A BILL WITH THE PROPOSED
CHANGES.
AMONG THE CHANGES IN THE CODE OF INTELLECTUAL
PROPERTY, WHICH SHOULD REFORM THE PROCESS OF
CONTRACTING, PROTECTING, AND TRANSFERRING TECHNOLOGY,
THE MOST NOTABLE IS THE EXTENSION OF PATENT PROTECTION
TO PHARMACEUTICAL PRODUCTS AND PROCESSES, WHICH BEFITS
THE OBJECTIVES OF THE NEW INDUSTRIAL AND FOREIGN TRADE
POLICY.
MELTON
UNCI ASSIFIED
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2ND STORY of Level 1 printed in FULL format.
Copyright (c) 1990 The Christian Science Publishing Society:
The Christian Science Monitor
July 23, 1990, Monday
SECTION: THE WORLD; Pg. 4
LENGTH: 784 words
HEADLINE: Brazil Recession Follows Attack On Inflation
BYLINE: Julia Michaels, Special to The Christian Science Monitor
DATELINE: SAO PAULO, BRAZIL
possible chrasie for speech
KEYWORD:
Stats
BODY:
A RECESSION predicted here since last March has begun, economists say, as the
government begins another round in its battle against Brazil's stubborn
inflation.
The downturn is most noticeable in Sao Paulo state, responsible for half the
country's gross national product of about $350 billion. Companies there laid off
about 171. 000 workers in the first half of 1990, the most in 10 years. Retail
sales fell in the region by 17 percent between January and June, compared with
the same period last year.
Economists say a wage squeeze, a more liberal import policy, and the
government's new attempts to keep down monetary growth have started a recession
and will bring inflation down over the next few months.
'Recession has come to be part of the government's policy logic, Cesar
Maia, a federal deputy and economist, recently told the daily Jornal do Brasil.
That logic has meant: boasting banks' reserve requirements, hiking capital-gains
taxes, stretching out terms of investment funds, and reducing wages, to name a
few measures. ''All this together produces results, Mr. Maia says.
Brazil has lived with inflation for most of the last decade, and the
country's new president, Fernando Collor de Mello, has made the problem his
No. 1 policy target. Mr. Collor's success as the first directly elected
president in 29 years rests largely on his ability to stop inflation, to bring
hope for better times back to the Door who make up most of the country's 140
million people.
Still, inflation has bobbed down and up aqain in the gast few months. Just
before Collor took office March 15, prices were rising at a rate of about 80
percent a month. In the first months after his economic shock plan, inflation
dropped to less than 5 percent a month. But in June, prices rose about 12
percent: July is expected to be 13 percent.
The biggest threat to the success of the new policy comes from workers
demanding wage hikes to keep up with inflation. Last week, 27,000 steelworkers
struck for a 166 percent pay increase.
LEXIS® NEXIS® LEXIS® NEXIS
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(c) 1990 The Christian Science Publishing Society, July 23, 1990
Wages have traditionally been indexed to inflation in Brazil. But the
Collor government did away with this artifice. Congress, with an eye toward
reelection Oct. 3, earlier this month passed a bill providing cost-of-living
increases. But the president has vowed to veto it when it crosses his desk.
The current policy is to say strictly 'no' to everyone, until inflation
gets to a level of 2 or 3 percent and stabilizes at this level, says Central
Bank President Ibrahim Eris. ' ' I believe in Collor, in his sincerity, and we
will even risk losing some votes in the (congressional) elections.
sounds
But losing votes in Congress means risking legislative support for future
like
presidential initiatives.
,
Saying ''no'' has also included cuts in the government budget. Economy
Minister Zelia Cardoso de Mello said July 13 that federal workers will get no
pay increases this year, and that government will cut its investments in such
areas as electrification, petroleum production, and mining by 39 percent to
about $6 billion. That $36 billion cut, plus revenues, should help produce a
small budget surplus, the first in years.
Tightfistedness also applies to Brazil's $115 billion foreign debt and
interest arrears of $7 billion. Officials say Brazil this year will pay only
the $4 billion it owes to international organizations, including the
Inter-American Development Bank, the World Bank, the International Monetary Fund
(IMF), and the Club of Paris. Private banks are to get nothing on long-term
credits.
Last week, Economy Policy Secretary Antonio Kandir met in Washington with IMF
officials, to begin negotiating a standby loan. Meanwhile, Ms. Cardoso de Mello
is explaining the Brazilian economic situation to European government officials,
to begin paying the way for debt negotiations and to attract new foreign
investment.
Just after Collor imposed his first drastic liquidity squeeze, economists
were predicting a near-instant depression in Brazil. Many companies, strapped
for cash, halted production. But as the Central Bank began allowing more money
back into the economy, activity started up again. The downturn has put the
brakes on industries that require long-term planning and investment, such as
capital goods. But it appears to have begun spreading.
''It was always thought that Brazil could fight inflation without
recession,' Maia told the Jornal do Brasil. ' ' And what that got us was near
hyperinflation, poverty, terribly low salaries.
know that we are investing much less in social needs than Brazil must
have,' he says. ''But the moment comes when you have to choose. Our choice is
to end inflation. Then, we'll see.''
GRAPHIC: PHOTO: RIO DE JANEIRO: Brazil's government is trying to stifle
inflationary price increases on goods and food - including fish, at this outdoor
market., ROBERT HARBISON - STAFF
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79TH STORY of Level 1 printed in FULL format.
Copyright (c) 1990 The New York Times Company;
The New York Times
February 11, 1990, Sunday, Late Edition - Final
SECTION: Section 1; Part 1, Page 11, Column 1; Foreign Desk
LENGTH: 597 words
HEADLINE: In Brazil, Chaos Is Rising With the Inflation Rate
BYLINE: By JAMES BROOKE, Special to The New York Times
DATELINE: RIO DE JANEIRO, Feb. 10
BODY:
Poor people have started looting food stores as Brazil's monthly inflation
rate soars.
With food prices expected to rise 70 percent this month, about 800
impoverished Brazilians broke into Rio's largest wholesale fruit and vegetable
market on Thursday, and the market, Ceasa, briefly became a tableau of
Brazil's sharpening economic chaos.
Security guards stood by, arms folded, because they are striking for
inflation-adjusted salaries. A platoon of military police officers arrived,
firing guns in the air. Newspapers reported on Friday that several then started
stealing food from the looters.
By the end of the day, two people were under arrest and 15 tons of food were
missing.
Reminiscent of Argentina
The scenes of looting reminded many Brazilians of the sackings of food
markets that erupted after soaring inflation hit Argentina last May. Because of
the looting there, President Raul Alfonsin agreed to step down five months early
to allow the newly elected leader, Carlos Saul Menem, to take office. In
Brazil, Fernando Collor de Mello is to be inaugurated as President on
March 15. Elected last December, Mr. Collor has declined to take office early.
Mr. Collor has predicted that Brazil's inflation will be running at 80 to
90 percent a month by the time he takes office. A limited amount of social chaos
would help Mr. Collor push through a tough anti-inflation program through
Congress, several Brazilian business leaders have speculated in interviews here.
Currently on a world tour, Mr. Collor has often said that a sharp attack on
inflation will be a top priority of his new government. Zelia Cardoso de Mello,
his closest economic adviser, has set a goal of 5 percent a month by mid-June.
'Inflation is the primary enemy and will be fought with implacable vigor,
Mr. Collor told British businessmen in London on Thursday, hours after the food
sackings started here.
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(c) 1990 The New York Times, February 11, 1990
'The Brazilian population can be absolutely sure that we are going to
liquidate inflation, and this will be in the first 100 days of the government,
said the President-elect, who is scheduled to return here on Tuesday.
In Brazil, where money shrinks in value by 2 percent a day, the economy
takes on an increasingly surreal quality.
On Wednesday, savings accounts started offering pre-tax interest rates of 100
percent, and the Government put into circulation a new 500-cruzado denomination
bill. The 200-cruzado note, dethroned from a fleeting reign as Brazil's
highest denomination bill, is now worth $4.50 on the street.
No Meat and Rented Costumes
Although some companies have resorted to raising wages weekly, many people
find they cannot keep up.
''I haven't bought meat in six months, and for recreation it's just the
beach, which is free,'' said Antonia Ferreira, a mother of three whose husband
is a doorman in Leblon, a beachfront neighborhood here.
Prices for the same goods often vary wildly from store to store. A recent
magazine survey found one clothier selling a man's suit for a higher price than
the combined price of a blender, a small oven, a fan, a toaster and an electric
juicer. With Rio's pre-Lenten Carnaval approaching in two weeks, many
middle-class Brazilians are cutting back at a time when they often let loose.
At an auction last week, Rio's state tourism agency was able to find takers
for only 15 of 66 boxes that offer views of the samba school parade.
Scared by high prices, many make-believe pirates, Indian princes, ballarinas
and Polynesian maidens are also reduced to renting their costumes for this
year's Carnaval balls.
SUBJECT: ECONOMIC CONDITIONS AND TRENDS; PRICES; LOOT AND LOOTING
NAME: BROOKE, JAMES; COLLOR DE MELLO, FERNANDO
GEOGRAPHIC: BRAZIL
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68TH STORY of Level 1 printed in FULL format.
Copyright (c) 1990 Reuters
The Reuter Library Report
February 13, 1990, Tuesday, BC cycle
LENGTH: 453 words
HEADLINE: PRESIDENT -ELECT COLLOR RETURNS TO BRAZIL AFTER WORLD TOUR
BYLINE: By Stephen Powell
DATELINE: SAO PAULO, Feb 13
KEYWORD:
BRAZIL -COLLOR
BODY:
President -elect Fernando Collor de Mellor returned to Brazil on Tuesday
after a 19-day world tour which he used to drive home the message that he wants
Brazil to join the club of rich nations.
During the 1964-85 military dictatorship Brazil cultivated relations with
Third World countries in Latin America and Africa and projected itself as a
Third World leader.
Collor, 40, takes a radically different tack and says he wants Brazil to
sit at the same table as the Group of Seven rich industrialised countries.
He has left no one in doubt about his priorities. He visited three Latin
American countries - Argentina, Uruguay and Paraguay - in just one day last
month and then flew off for the countries with economic and political clout.
Brazil is the eighth largest non-communist economy but it faces serious
problems of mass poverty and runaway inflation.
The Brazilian press has acclaimed Collor's trip to the United States, Japan
and Europe as a success but newspapers also highlight the distance between the
Brazil of Collor's dreams and Brazil as it is today.
The business newspaper Gazeta Mercantil said in an editorial on Tuesday that
Collor "returns to a Brazil worse than he left a month ago: prices soar in
incomprehensible fashion, alcohol fuel is lacking in several states, hospitals
do not accept the sick and misrule was never 50 flagrant."
Inflation in 1989 was 1,764 per cent, but is 50 far running at even higher
levels this year. In February alone prices are expected to rise about 70 per
cent and in March 80 per cent. Brazilians no longer have a clue what anything
costs.
Some hospitals have refused to admit patients receiving government-paid
treatment because by the time the government pays the hospitals the currency is
devalued.
On arrival in Brasilia, Collor called on the outgoing administration of
President Jose Sarney to take urgent measures to combat inflation. Collor,
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(c) 1990 Reuters; February 13, 1990
who takes office on March 15, three months after his election, has promised to
bring inflation down to 10 per cent a month within 100 days.
Collor's planned reforms include cutting the huge state sector which accounts
for about two-thirds of the economy.
Collor during his trip met with leaders including U.S. President George Bush,
Soviet leader Mikhail Gorbachev and the heads of government of Japan and West
European nations.
He conveyed the message that Brazil would not allow payments on its 115
billion dollar foreign debt to harm its economic growth and was told by the
other leaders that they are looking to Brazil to play its part in
environmental protection.
Brazil has a third of the world's rainforests and there is continuing
concern over the country's rapid destruction of the forests.
SUBJECT:
POLITICS
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58TH STORY of Level 1 printed in FULL format.
Copyright (c) 1990 Latin American Newsletters, Ltd.;
Latin America Regional Reports: Brazil
February 15, 1990
SECTION: WASHINGTON LETTER; Capitol Hill; RB-90-02; Pg. 7
LENGTH: 348 words
HEADLINE: COLLOR'S MESSAGE PLEASES WASHINGTON
BODY:
Billed as a 'get-acquainted' visit, President -elect Fernando Collor de
Mello spent 26-27 January on a crash course on US concerns with regard to
Brazil. In meetings timed at 45-minute intervals, he met President George
Bush, Vice President Dan Quayle, and Secretaries James Baker (State), Robert
Mosbacher (Commerce), Nicholas Brady (Treasury), US Trade Representative Carla
Hills, as well as Environmental Protection Agency (EPA) Administrator William
Reilly.
Collor's message was music to Washington's ears. Emphasising his personal
interest in Washington's economic and trade concerns, he said that:
* Brazil will abandon the highly interventionist' state model now in place.
* Import restrictions on US computers and informatics technology will be
lowered.
*
Protectionism will be a 'political instrument to be placed on the shelf.
* Joint ventures with foreign companies that import technology will be welcome.
Washington policymakers are awaiting with interest the Collor government's
debt negotiation strategy. Collor refused to give details, although he noted
that, while he had no intention of imposing terms for debt negotiations, he
would not accept conditions that would impede economic development and condemn
Brazilians to 'backwardsness and misery'. Collor -- who also met top IMF, World
Bank and IDB officials during his visit - promised to send an economic team to
Washington and New York to renegotiate Brazil's foreign debt in the first week
of his government.
On the question of the US invasion of Panama, Collor changed gear in
midsentence, telling reporters on 26 January there was 'no great adversity' to
the US action and ending with a defence of sovereignty and only 'interventions
of reason' between countries.
Brazil expert Riordan Roett, professor at the School of Advanced
International Studies, has called Collor's visit 'symbolic of change', but has
cautioned that US bankers 'have learnt that glamour is not a replacement for
performance' and that it will be difficult to spark US investor confidence in
Brazil in the short run.
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41ST STORY of Level 1 printed in FULL format.
Copyright (c) 1990 Newspaper Publishing PLC
The Independent
February 16, 1990, Friday
SECTION: FOREIGN NEWS PAGE; Page 11
LENGTH: 371 words
HEADLINE: Collor rallies 'barefoot warriors'
BYLINE: From RICHARD HOUSE in Sao Paulo
BODY:
BRAZIL'S president -elect, Fernando Collor de Mello, has declared the
country to be in a ''state of war'' against runaway inflation, promising to
mobilise millions of ''workers for national reconstruction'' and to put
speculators behind bars.
At a press conference in Brasilia, on his return from a three-week
international tour designed to improve Brazil's inflation-battered image, Mr
Collor promised to be implacable in the struggle to control a situation he said
was ''on the brink of hyperinflation''. The cost of living will rise by more
than 72 per cent this month and by around 80 per cent next month when he takes
office. Annual inflation is forecast to exceed 2,500 per cent.
Though Mr Collor ruled out a price freeze and refused to give details of the
economic measures he intends to announce next month, he said the sudden increase
in inflation was in line with the ' 'worst-case scenario'' envisaged by his
economic team. It would force only minor changes in his strategy of cutting at
the roots of the problem with gradual measures.
The 'workers for national reconstruction'' are to be Mr Collor's shock
troops in the battle to fulfil his pledge to bring inflation down to 10 per cent
in three months. Mr Collor made an emotional public appeal to those who voted
for him last December - ''the discamisados, the barefoot ones, and those who
suffer'' - to form the new army.
Mr Collor's ''war effort' already has its public enemy: the elite
establishment that gave the 39-year-old leader his first political opportunities
and also financed his costly election campaign, in which he narrowly defeated a
left-wing rival, Luis Inacio ''Lula'' da Silva.
''The speculators, the tax dodgers and the privileged will pay the bill for
my economic plan,' he said, warning inflation was a police matter. He promised
to lock away ''Brazilian elites who carry on increasing prices abusively''.
The new leader also signalled a U-turn in Brazil's non-aligned foreign
policy, promising to tear down trade barriers as Brazil hungrily competes for
investments that might otherwise go to Eastern Europe. He said the country must
abandon 'xenophobic Third World dreams' and pursue integration with the
developed world.
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29TH STORY of Level 1 printed in FULL format.
The Xinhua General Overseas News Service
The materials in the Xinhua file were compiled by The Xinhua News Agency. These
materials may not be republished without the express written consent of The
Xinhua News Agency.
FEBRUARY 21, 1990, WEDNESDAY
LENGTH: 109 words
HEADLINE: brazil -argentina free trade urged
DATELINE: brazilia, february 21; ITEM NO: 0221189
BODY:
the brazil -argentina chamber of commerce presented a proposal to
president -elect fernando collor de mello on tuesday for free trade between
the two countries. chamber president pery sommer pereira said the plan would
signal the beginning of integration along their common border, stretching from
urucuaiana city to the mouth of the iguazu river. pereira said he will urge the
president-elect to sign a recommended commercial line to remove bureaucracy in
trade with argentina. the chamber is also expected to discuss the establishment
of stock exchanges in some cities where buying and selling will be done with
argentine currency, pereira said.
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10TH STORY of Level 1 printed in FULL format.
Copyright (c) 1990 Reuters
The Reuter Library Report
February 25, 1990, Sunday, BC cycle
LENGTH: 721 words
HEADLINE: BRAZIL'S POOR SUFFER WITH INFLATION WHILE RICH PROFIT
BYLINE: By Toya Chapoval
DATELINE: RIO DE JANEIRO, Feb 25
KEYWORD:
BRAZIL -INFLATION
BODY:
It has been four years since Alexandre Gomes Oliveira has been able to take
his family to a restaurant or treat his children to ice cream.
Gomes, a building superintendent in Rio, earns two and a half times the
minimum wage - 5,000 cruzados (about 92 dollars) a month. But his family goes
without meat or fish. They eat mainly eggs, rice and beans.
"For us it is not a question of how we live with inflation," he said. "It is
a question of how we survive."
There are various investment opportunities in Brazil that offer returns
that outpace the rate of inflation, but even opening a bank account is beyond
the means of the majority of Brazil's poor.
"It is not even a dream," Gomes said.
"I do not have enough money to eat properly," said Almerida da Silva, a widow
with eight children who works as a cleaning lady in a Rio office building. She
makes 3,000 cruzados (55 dollars) a month.
Inflation in Brazil hit 56 per cent in January and is expected to reach 70
per cent in February and 80 per cent in March.
President -elect Fernando Collor de Mello, who takes office on March 15,
has declared "a state of war against inflation".
Although salaries are indexed to inflation, Gomes noted that his salary, to
be paid at the end of February, will rise only at the rate of January's
inflation.
Prices of many goods rise far more than the government's inflation indicator.
Anita Nettesheim went one morning to buy cement for some home repairs. She
paid 20 cruzados (35 cents) for one package but found it was not enough. Two
hours later she went to buy more, only to find the price had doubled.
However, she and her husband, Jorge, a computer programmer, have found ways
to stay ahead of inflation. They invest in the stock market and "overnight"
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(c) 1990 Reuters; February 25, 1990
accounts.
The Sao Paulo stock exchange index has risen nearly 45 per cent so far in
February. The overnight interest rate, which banks pay for overnight deposits,
is now over 105 per cent a month.
Gold, property and the dollar are other favourite investments among the
middle and upper classes.
Ordinary savings accounts pay half a percentage point above the inflation
rate. In a move to make savings accounts more accessible to the poor, some banks
now will accept any amount to open an account. Previously, they required a
0,000-cruzado (184 dollar) minimum.
But even for those who manage to stay ahead of inflation, living with
day-to-day price changes has taken its toll.
"Inflation is creating a state of neurosis in Brazil, H said Silvio
Zibenberg, a transport engineer.
Except for necessities such as food, Zibenberg said, he buys nothing without
doing extensive research because prices vary from place to place.
One Rio merchant, who asked not to be named, said the same bicycle can sell
for 3,000 cruzados (55 dollars) in one store and 9,000 (165 dollars) in another.
"But in the time it takes to do the research prices often go up," he added.
He told the story of a woman who came to his store to buy a child's swimming
pool. She then did some comparative shopping and returned a few hours later to
buy the pool. But the price in those few hours had risen by some 1,500 cruzados
(27 dollars).
One way Brazilians try to beat inflation is by using credit cards, thus
delaying payments by as much as 35 days. However, many stores no longer accept
credit cards for just that reason.
The Nettesheims said they do all their food shopping in the Freeway
supermarket, even though it is a 40-minute trip from their home in Rio. The
prices are more expensive but it is the only Rio supermarket that still accepts
credit cards.
Many stores offer discounts of 50 per cent or more on items bought with cash.
But Brazilians have discovered it is better to buy on credit and pay a month
later. The money made in an overnight account during that time more than makes
up for the higher prices, they said.
Some, like Zibenberg, travel even greater distances to make their purchases.
Zibenberg said he goes to the United States twice a year to make major
purchases, such as electronics. The money saved is more than the airfare, he
said.
Others are not 50 lucky.
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(c) 1990 Reuters; February 25, 1990
"When our refrigerator breaks or our television burns out, we can't afford to
replace them," said Gomes. "We used to pay for these items in instalments, but
now the payments are readjusted every day."
TYPE:
GENERAL FEATURES
SUBJECT:
LIFESTYLE; ECONOMIC AFFAIRS
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5TH STORY of Level 1 printed in FULL format.
Copyright (c) 1990 The Times Mirror Company;
Los Angeles Times
February 27, 1990, Tuesday, Home Edition
SECTION: Business; Part D; Page 21; Column 1; Financial Desk
LENGTH: 431 words
HEADLINE: PRESIDENT-ELECT OF BRAZIL READIES PLAN ON INFLATION;
ECONOMICS: EXPERTS SAY FERNANDO COLLOR DE MELLO MUST CONTROL RUNAWAY INFLATION
QUICKLY OR LOSE CREDIBILITY.
BYLINE: By WILLIAM R. LONG, TIMES STAFF WRITER
DATELINE: RIO DE JANEIRO
BODY:
While other Brazilians reveled in the traditional Carnival holidays,
President -elect Fernando Collor de Mello worked Monday on plans for taming
inflation of more than 70% a month.
Collor, 40, takes office March 15, succeeding President Jose Sarney. During
Sarney's five years in office, inflation has totaled more than 1 million
percent.
Over the weekend, the official Brian Institute of Geography and Statistics
announced that inflation from mid-January to mid-February reached a record
monthly rate of 72.78%. If compounded for 12 months, that would produce an
annual rate of 70,682%.
"I have confessed several times - and I confess with absolute humility --
that I was not successful in my plans for fighting inflation," Sarney said last
week.
Collor, elected in a Dec. 17 runoff vote, has likened Brazil's inflation to
a charging tiger and himself to a hunter with only one bullet in his rifle. He
and many economists say he must control inflation in the first months of his
administration or lose essential public credibility.
While recent public opinion polls have shown a high rate of public confidence
in Collor, Brazilians look nervously at neighboring Argentina, where a new
president last year appeared to be dominating inflation but has since lost
control of the economy.
"The next president cannot err because any initial failure will cost him a
tremendous loss in public opinion, dragging the country down the same tragic
road as Argentina," warned Marcos Cintra de Albuquerque, director of the Getulio
Vargas Foundation School of Business Administration.
Collor has promised to reduce official spending and increase government
efficiency, selling or closing many money-losing state enterprises and
renegotiating Brazil's $112-billion foreign debt. He has said he will take his
first anti-inflationary measures immediately after his inauguration, vowing to
reduce the monthly rate to 10% within 100 days.
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(c) 1990 Los Angeles Times, February 27, 1990
Collor's press adviser denied reports during the weekend that a possible
freeze on the prices of food staples was being studied. The president-elect has
said a price freeze does not mesh with his free-market policies.
On Monday, after Brazilians in many cities celebrated the pre-Lenten Carnival
with a night of marathon parades and parties, Collor met all morning in
Brasilia, the capital, with his economic team, headed by Zelia Cardoso de Mello.
"Collor and his team are taking advantage of the last Carnival days, Monday
and Tuesday, to put the final touches on plans for economic and administrative
reform," the official news agency Radiobras said.
GRAPHIC: Photo, (Southland Edition) Jose Sarney
SUBJECT:
BRAZIL - ECONOMY; BRAZIL - GOVERNMENT OFFICIALS; INFLATION; COLLOR DE
MELLO, FERNANDO; BRAZIL -- GOVERNMENT
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181ST STORY of Level 1 printed in FULL format.
Copyright (c) 1990 Newspaper Publishing PLC
The Independent
April 11, 1990, Wednesday
SECTION: LIVING PAGE; Page 13
LENGTH: 1071 words
HEADLINE: Where therapy now costs a fruit cake: Brazil's shock economic
reforms mean its yuppies must learn to live in a world without cash, reports
Richard House
BYLINE: By RICHARD HOUSE
BODY:
IMPECCABLE in his English suit and gleaming shoes, Renato Marques is grimly
proud of having discovered the cheapest hot-dog stand on a low-rent corner of
Sao Paulo's business district, where he now lunches daily.
'While office boys eat in restaurants, the boss must make do at the lunch
counter, he smiles wryly. Just three weeks ago, 36- year-old Mr Marques had
almost within his grasp the kind of lifestyle that cigarette ads used to feature
- scuba-diving holidays on paradise islands, beach weekends and langorous
Saturday barbecues topped with choice armagnac. As a partner in an insurance
firm, his prosperity seemed assured.
But on 16 March everything changed: Brazil's new president announced a
radical economic plan aimed at killing the country's 2,000 per cent
hyperinflation. Overnight a world of gracious, if wasteful, living for the lucky
few vanished, to be replaced by a climate not unlike that of Britain in the
blitz.
To stop consumer demand, three-quarters of private and company savings have
simply been frozen. President Fernando Collor de Mello has promised that his
'war economy'' will punish the privileged elites whom he accuses of bleeding
the country white.
Yet his principal victims are young, thirtysomething professionals such as
Renato Marques, who invested everything in their companies and are now
struggling to survive in the face of recession.
The reform has stopped almost all insurance business activities - yet the
bills keep coming in. After gaving the wages at the office Mr Marques had pounds
120 left over to last his family a month. ''The cleaning lady offered to lend me
some money when I told her I couldn't Day her,'' he says. His sons Joaquim and
Francisco dare not ask for pocket money.
To help cover their school fees. Mr Marques has offered the school an
insurance deal. 'We took the boys out of swimming classes and I wanted to stop
their music lessons, too. But the teacher told my wife Monica one customer was
paying in pizzas: now she brings pot-plants and does the garden while they have
their lessons indoors.
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(c) 1990 The Independent, April 11, 1990
''The first discovery is that you can live on much less than you thought - I
realised in the past I'd been an idiot and that 90 per cent of people were
stealing from me. There's much more understanding and goodwill now.
Marta and Marcelo Aflalo's graphic design and architecture studio was low
down the list when customers such as Johnson & Johnson reluctantly came to Day
their bills after the economic shock.
'We're living on fresh air: we couldn't take a penny from the company this
month, says Mrs Aflalo, who has scrapped weekend trips and no longer shops in
the expensive vegetable market.
The couple tried to sack their assistant architect, but she prefers to work
for nothing, rather than get depressed at home. Now new commissions are slowly
appearing: instead of luxury homes or lush corporate brochures. the Aflalos are
designing fast-food outlets for down-market suburban shopping centres.
'The reality is different now: there's been a major change in social
habits, says Mr Aflalo. ''The A and B classes are now consuming what had
before been left for the C and D groups - when they can afford it. And the D and
C groups are buying up top-quality consumer goods in the sales.
A week ago Eliana Cesar was in despair. Weekend tourists had deserted Campos
de Jordao, a hill resort near Sao Paulo where her small factory turns out
stylish fruit cakes and chutneys. ''My analyst said everyone was being negative,
I had to think positive. And after five minutes' positive thinking the first
client appeared. With the prospect of export sales, she has avoided laying off
her 15 workers, who she says are now enthusiastically ''playing for the team -
now sales are their problem, too. People are much more united. Ms Cesar is
still living off the vegetable garden and plans to kill a duck for Easter, but
she has turned the corner.
There is no spare cash yet for the analyst. who 15 receiving payment in fruit
cakes. Sao Paulo's young professionals are finding ingenious solutions to
maintain their counselling in a world without cash: psychotherapists are being
paid in frozen food, art works, embroidered cushions and even live pigs.
Mario Gallo's company organised art exhibitions and cultural events that
benefited from one of the corporate tax incentives. The incentives were scrapped
by the Collor plan, and the day after it was announced all his clients cancelled
their contracts.
He kept the office going. ''I'm not earning anything, but I tell clients I
prefer to build up credit because someone will pay me eventually. I'm backing
the integrity of people. much more than the technical merits of this plan. he
says. 'The bourgeoisie is starting to learn the true value of things.
Life has changed at home: instead of shopping locally, fastidious Mr Gallo
gets up at 6am to drive out to the municipally subsidised fruit and vegetable
market in a grim and grimy suburb.
'You stand in a queue with 800 Door people. When they give you a plastic bag
everyone goes crazy, cramming in vegetables. I now feel like someone living in a
communist country - but everyone has their price. I know my price today is
buying two big sacks of fruit and vegetables for half what it costs in the
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(c) 1990 The Independent, April 11, 1990
supermarket.
Exporter Marcos Croce escaped a more serious financial upset, when pounds
90,000 of his working capital was briefly frozen by the Central Bank. He remains
enthusiastic about the plan, even though it has produced violent exchange rate
fluctuations that have temporarily grounded his business.
'No one is exporting a thing, 50 my private life has changed a lot. I
negotiate everything with everyone - and pay them in installments,' he says.
Compared with the 700,000 salaried workers in Sao Paulo who received less
than a full pay- packet this month, or the 300, industrial workers on paid
leave that could soon turn into dismissal, these professionals' problems may
seem trivial.
Tens of thousands of casual farm and construction workers have nowhere to
sleep and politicians are pressing for the formation of work gangs to help the
hungry and jobless.
But with Renato Marques, Marcelo Aflalo and Mario Gallo rests the success or
failure of Mr Collor's ambitious plan: to wrest Brazil from the ancient
langour of its Iberian roots and make it look northward to the work-oriented
Anglo-Saxon world.
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157TH STORY of Level 1 printed in FULL format.
Copyright (c) 1990 Reuters:
The Reuter Business Report
April 12, 1990. Thursday. BC cycle
LENGTH: 468 words
HEADLINE: BRAZIL CONGRESS APPROVES ANTI-INFLATION PLAN
BYLINE: By Rene Villegas
DATELINE: BRASILIA. Brazil
KEYWORD:
BRAZIL -CONGRESS
BODY:
The Brazilian congress approved Thursday the central measures of President
Fernando Collor de Mello's anti-inflation plan, one of the most draconian
monetary reforms in history.
The measure created a new currency. the cruzeiro, and fixed strict limits on
how much money Brazilians can withdraw from bank and savings accounts over the
next 18 months.
According to government calculations, the measure freezes about $115 billion
of the $150 billion in individual and company accounts.
The official news agency Radiobas said the government proposal had been
approved without changes.
Renan Calheiros, leader of the government in the Chamber of Deputies,
described the congressional approval as "a formidable victory."
The freezing of bank accounts is the key to the whole government plan, which
is designed to beat an inflation rate of 4,854 per cent over the past year.
Since Collor introduced his severe austerity plan on March 16, the second day
of his government, prices have been stable. But the freezing of most money in
Brazilian accounts has been extremely controversial. Not only has it interfered
with individual lives, it has made it difficult for companies to pay wages and
has promoted fears of a serious depression.
The Bank of Boston's Newsletter Brazil called it "The most radical economic
stabilization program ever imposed on a Latin-American country. if not on any
country."
The plan establishes that Brazilians cannot withdraw more than fifty thousand
cruzeiros, a little more than $1,000, from current and savings accounts over the
next 18 months. They can take out 25,000 cruzeiros, or 20 percent of the total,
whichever is greater, from money market accounts.
Collor has dubbed the austerity program the "New Brazil" plan.
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(c) 1990 Reuters, April 12, 1990
"Let us hope that Brazil succeeds," said senator Fernando Henrique Cardoso,
leader of the Social Democrats in the senate.
The social democrats had supported an easing of the tight restrictions on
bank withdrawals, as had the Brazilian Democratic Movement Party (PMDB), the
biggest party in the 570-member congress.
But a PMDB amendment proposing higher withdrawal limits was defeated
Wednesday night.
Other ammendments were later withdrawn and congressmen said the government's
measure was automatically approved.
The congressional approval was a major victory for Collor, at 40, the
youngest president in Brazilian history.
Collor has vowed to liquidate inflation, which he described in his
inaugural address as a "social cancer," in his first year in office.
"This is an historic day for the national congress." said Calheiros.
Brazilians are conscious that their country is passing through a critical period
and that success or failure of the government's plan will have enormous
repercussions for the southern hemisphere's biggest economy.
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84TH STORY of Level 1 printed in FULL format.
Copyright (c) 1990 Reuters
April 20, 1990, Friday, BC cycle
SECTION: Financial Report. Money Report. Domestic Money.
LENGTH: 377 words
HEADLINE: BRAZIL NATIONAL STEEL COMPANY TO BE PRIVATIZED
BYLINE: By Tova Chapoval
DATELINE: RIO DE JANEIRO, APRIL 20, REUTER
BODY:
Brazil's National Steel Company (CSN) will be privatized within a year.
Roberto Procopio Lima Neto, the new president of the company, said.
Lima Neto, who was sworn in as president on Thursday, said at the ceremony
that the new government of President Fernando Collor de Mello had approved
the privatization.
"It is an irreversible decision," Lima Neto said.
A spokesman for the ministry of Infrastructure said Friday that there was no
time limit for the privatization, which will be preceded by "a program of
financial recuperation."
CSN's debt totals 2.5 billion dlrs.
Within the next 60 days "a reasonable number" of the company's 23,000
employees will be laid off, Lima Neto said.
The company has a history of stormy relations with its employees. Three
people were killed during a 1988 sit-in at a steel plant in Volta Redonda in Rio
state.
The leader of the union of steel workers of Volta Redonda, Luis Albano, told
reporters that workers would fight the privatization, saying they might occupy
the Volta Redonda steel plant again.
Infrastructure Minister Ozires Silva said government funds would not be used
for the company's operations but that 600 mln dlrs of foreign debt on deposit at
the Central Bank could be re-lent to CSN.
Silva said the government may allow new curzados frozen in bank accounts to
be used for the purchase of shares in CSN.
President Collor, who took office on March 15, announced that several
state-owned companies would be privatized as part of a new economic programme to
halt inflation and reduce the government's deficit. The plan froze over 100
billion dlrs worth of local currency in company and private bank accounts.
Collor told the Jornal do Brasil newspaper on Friday that he would not use
government money to help heavily indebted state-owned companies. He said he
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(c) 1990 Reuters, April 20, 1990
recently refused a request from CSN for 20 billion cruzeiros (about 400 mln
dlrs) in aid.
Lima Neto said the government would not "create obstacles" to foreign
participation in the privatization of CSN. Foreign investment will be limited to
40 pct of CSN's capital.
The first step in CSN's restructuring will be to sell off sectors not
directly related to steel production, such as its coal operations, Lima Neto
said.
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289TH STORY of Level 1 printed in FULL format.
Copyright (c) 1990 Institutional Investor, Inc.,
Institutional Investor
April, 1990
SECTION: PEOPLE; Pg. 12
LENGTH: 292 words
HEADLINE: The woman behind Brazil's economic shock treatment
BYLINE: EDITED BY KENNETH KLEE, Contributors: Stephen Clark, Saul Hansell, Fran
Hawthorne, Richard House, Janet Lewis, John W. Milligan, Ida Picker, Fiammetta
Rocco, Julie Rohrer
BODY:
The new president. 40-year-old Fernando Collor de Mello, calls her "the
professor. But members of his administration now obliged to live beneath their
means angrily dismiss her as "that girl." She is Zelia Cardoso de Mello, 37,
Brazil's youngest-ever economy minister, and she is fighting her country's
dire economic problems with the simple but powerful idea that where there is no
money, there can be no inflation. It works: Just 30 days after she began her
program - which freezes $ 115 billion in corporate and private savings in the
central bank for the next eighteen months and imposes an additional $ 30 billion
tax bite on the private sector - inflation had fallen from 80 percent a month
to just 10 percent. But most other economic indicators had likewise plunged,
and the country is now preparing for recession as the Drice of escaping
hyperinflation. Some say her plan is a rerun of Germany's 1948 creation of the
deutsche mark and pray it fares similarly.
Cardoso is a policeman's daughter whose only previous federal experience was
in 1986, when she was a junior architect of the disastrous cruzado plan that led
Brazil into debt moratorium. A former Sao Paulo University professor and
advisor to Collor when he was a provincial governor. she's a woman of austere
habits who often wears a single strand of pearls and prefers the works of Keynes
as bedside reading. Her remedies are a bewildering mixture of free enterprise
and statist intervention. But despite her youth and inexperience, she has held
her own with dissatisfied domestic bankers -- and is not afraid of calling the
police to back her up. Her next challenge: selling foreign bankers on the idea
that Brazil should henceforth halve its interest payments.
GRAPHIC: Photo, Brazil's Cardoso: Where there's no money, there's no inflation
Abril Imagens/Nellie Solit Renick
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25TH STORY of Level 1 printed in FULL format.
The Xinhua General Overseas News Service
The materials in the Xinhua file were compiled by The Xinhua News Agency. These
materials may not be republished without the express written consent of The
Xinhua News Agency.
APRIL 28, 1990, SATURDAY
LENGTH: 213 words
HEADLINE: brazil to save 14 billion dollars by reducing real interest rate
DATELINE: brazilia, april 28; ITEM NO: 0428187
BODY:
brazil will be able to save nearly 14 billion U.S. dollars this year as a
result of a reduction in the national debt's real interest rate, national
treasury department director roberto guimaraes said friday. the figure will be
equal to four percent of the country's estimated 350 billion-dollar gross
domestic product (ado), quimaraes said. the country's national debt real
interest rate stood at 30 to 40 percent a year. the government of president
fernando collor de mello froze 30 percent of the national debt and reduced the
real interest rate to six percent a year. the term of expiration was prolonged
to 18 months after march 19 and the payment will be made in 12 equal parts. a
move which signifies a 30-month term for payments. with the new system,
guimaraes said, the government has transformed a large debt with rapid payments
to a much smaller debt that can be paid over a longer period of time. thus, the
government also need not issue more money to keep wp with payments and spending.
he said. guimaraes said the new system, which has slashed government spending
on the national debt to one percent of the adp, along with other austerity
measures, will allow the government to meet its goal of having a financial
surplus equal to two percent of the gdo.
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21ST STORY of Level 1 printed in FULL format.
Copyright (c) 1990 The Daily Telegraph plc:
The Daily Telegraph
April 28, 1990, Saturday
SECTION: INTERNATIONAL; Pg. 11
LENGTH: 613 words
HEADLINE: £95m Collor plan to save Brazil's street children
BYLINE: By William Vanvolsem in Rio de Janeiro
BODY:
IN A MAJOR policy shift, President Collor of Brazil has ordered a
radical change in official attitudes to the country's estimated eight million
abandoned street children by announcing a state-subsidised £95 million foster
parents scheme.
In doing 50, he has effectively banned the regular and controversial rounding
up of children by armed police and their virtual imprisonment in doubtful
detention centres which go under the name of "social care institutions" and
where many minors claim they are beaten and tortured.
The measures are of such magnitude and drastic social impact that observers
have commented that they have seemingly emerged as the Collor government's
number two priority after the fight against inflation, already met with a
draconian economic austerity package.
The apparent seriousness with which President Collor seeks to tackle the
problem is shown not only by the sheer size of the funding - a 500 per cent
increase compared with child welfare budgets of previous years - but also its
classification as an "emergency programme", which has to be started within 45
days.
The main suggestions and outlines of the project were presented to the
President by Senhora Maria de Fatima Borges, 36, who has one child and was
selected by Senhor Collor as the head of the recently created Brazilian
Foundation Centre for the Child and the Adolescent.
The plan was inspired by a Unicef experiment in the poor interior of the
north-eastern states of Bahia and Alagoas, the President's home state, under the
title: "A House - A Home." The idea is to place children with foster families,
preferably with those of their little friends who still have some family ties.
In turn the families concerned will enjoy tax rebates and receive government
assistance, including finance, for the moral and physical well-being and proper
education of the children. Rigorous checks will be applied. "The detention of
abandoned children will be a thing of the past," said Senhora Borges. "It only
leads to the marginalisation and prostituting of innocent minors."
The round-up of children caused an outcry in Brazil two weeks ago when a
Rio de Janeiro judge withdrew his order to have the city's estimated 20,000
street children under the age of six taken to detention centres, after he
learned of "horrendous conditions" at these shelters.
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(c) 1990 The Daily Telegraph plc, April 28, 1990
"In that case they are still better off in the streets," said Judge Liborni
Siqueira.
Under the Collor initiative, these centres will not be abolished but their
maximum intake will be limited to 30 at a time, instead of the current 300, and
instead of being merely "detention centres" they will be turned into medical and
pedagogical centres.
The scheme will be launched first in Rio, where the problem is most acute. An
estimated 250,000 children are abandoned in the city, tens of thousands of them
making a living in the streets begging, shining shoes and committing petty
crimes such as theft and pick-pocketing. They sleep on cardboard in building
entrances and telephone booths. Mr John Donohue, Unicef representative in
Brazil, is hopeful for the next 10 years. "Social attitudes in Brazil are
changing. At the beginning of the Eighties most people were considering street
children merely as little criminals. This is no longer the case."
The National Movement for Street Children has calculated that the number of
children in need in the whole of Brazil is much higher than officially
acknowledged.
According to the organisation, there are 45 million children living in
"sub-human conditions": 25 million in "high risk situations", 12 million
abandoned or orghaned and seven million physically or mentally handicapped.
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18TH STORY of Level 1 printed in FULL format.
The Associated Press
The materials in the AP file were compiled by The Associated Press. These
materials may not be republished without the express written consent of The
Associated Press.
April 28, 1990, Saturday, AM cycle
SECTION: International News
LENGTH: 893 words
HEADLINE: Brazilians Split Over Economic 'Shock' Plan
BYLINE: By KEN SILVERSTEIN, Associated Press Writer
DATELINE: RIO DE JANEIRO, Brazil
KEYWORD: Brazil
BODY:
Business and organized labor say Brazil's economic "shock plan" is driving
the nation toward recession, but the poor think President Fernando Collor de
Mello has the right idea.
"I hadn't eaten meat in so long, I'd forgotten what it tasted like." said
Derly Rosa Perreira dos Santos, 25, who works as a maid and lives in a
shantytown of Rio's poor North Zone. "Now I can afford it twice a week."
Record annualized inflation of 4,854 percent has fallen dramatically since
Collor announced his "New Brazil" plan March 16, one day after taking office
as the country's first democratically elected president in 29 years.
It put an 18-month freeze on savings deposits of more than $$1,200 and
limited withdrawals from money market funds to $$600 or 20 percent of the value,
whichever was greater.
About $$115 billion was frozen, 80 percent of all bank deposits in Latin
America's largest economy.
Collor also cut spending, imposed new taxes and promised to sell many of the
188 state-owned companies to eliminate the $$31 billion federal budget deficit.
There is disagreement over the inflation rate for April - the government says
zero and several independent institutions estimate 25 percent - but all agree
the threat of hyperinflation is gone.
"Food and medicine are cheaper and the bus fare has stopped rising every
week," said Mrs. dos Santos, who has two children and rides the bus to work.
"I've even been able to save a little money the past month."
Spending on cheap housewares and appliances has surged.
"Our stores in poor areas are selling about 10 to 15 percent more," said
Fernando Martinho of the TeleRio chain of appliance stores. "Our outlets in
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The Associated Press, April 28, 1990
middle class and wealthy areas report stagnant sales, or even a small drop."
Mrs. dos Santos said that, if inflation remained low, she hoped to buy a
mattress for her children, who sleep on blankets on the floor of the family's
concrete hut.
Poor Brazilians have little sympathy for wealthy people with frozen bank
accounts, now referred to in the press as "nouveau poor."
More than half the workers in Brazil earn $$150 a month or less, while the
richest 10 percent of the country's 150 million people live in luxury.
Nilda Modena da Silva praised Collor for freezing the accounts and said:
"While I had no money to buy bread, the rich threw food in the trash."
She is not happy about zero inflation, however, because that means Day will
not go up, and "how can he (Collor) freeze a mother's salary?"
Mrs. da Silva works as a janitor and supports her two children on the minimum
wage of about $$75 a month.
Opinion about the economic plan seems evenly divided in the middle class, but
Collor gets low marks from the rich.
A survey by the respected firm Research International found a sense among. the
upper 10 percent of reduced social standing, "loss and humiliation."
Antonio Ermirio de Moraes, president of the Votorantin group, Brazil's
biggest private company, said on a television talk show he considered emigrating
after having $$500 million caught in the freeze.
Many businessmen feel betrayed because they supported Collor against
socialist Luis Inacio Lula da Silva in the December election. They accuse the
president of reneging on promises of free-market reform.
"We are living in an economic dictatorship," said business consultant
Alexandre Barros. "Never in the history of this country has there been 50 little
economic freedom.
"The name of the game is no longer to be an effcient entrepeneur, but to be a
political operator who can pressure the government into releasing your money.
There are no market criteria at all."
Organized labor agrees with management in this case.
Official figures say unemployment has grown from 3.5 percent to more than 9
percent since March 15.
The huge, foreign-owned auto plants that ring Sao Paulo, Brazil's largest
city, have put 80 percent of their employees on furlough and about 300, 000
construction workers have been laid off.
"This plan will lead to a depression far worse than the hyperinflationary
spiral which it was supposedly going to save us from," said Jose Olivio Miranda
of the Central Workers Union, the largest labor federation, which represents
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The Associated Press, April 28, 1990
about 12 million workers.
Layoffs have led thousands of people who migrated to the industrialized south
to return home. In mid-April, buses from Sao Paulo to the poor northeast carried
1,700 passengers a day, twice the usual number.
Gustavo Franco, an economist at Rio's Pontifical Catholic University, said a
downturn was necessary to curb inflation.
"Once the cost of living comes down, it is relatively simple to restart
growth.' he said. "We have a very strong economy with a solid industrial base."
Luiz Carlos Bresser Pereira, a former finance minister, said: "The government
has taken necessary steps to permanently bring down inflation. First we need to
stabilize the economy, then the government should implement
policies to help
the Door.'
Herbert de Souza, director of the Brazilian Institute of Social and Economic
Analysis, is less sanguine.
"With the poverty we've got. Brazil can't take a deep recession," he said.
"The first impact of the plan may have helped the poor, but that is temporary
and will be erased with a recession. The measures are now popular because people
are looking at the immediate impact and not consequences."
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17TH STORY of Level 1 printed in FULL format.
The Associated Press
The materials in the AP file were compiled by The Associated Press. These
materials may not be republished without the express written consent of The
Associated Press.
April 28, 1990, Saturday, BC cycle
ADVANCED-DATE: April 29, 1990, Sunday, BC cycle
SECTION: Business News
LENGTH: 873 words
HEADLINE: Brazilian Economic Upheaval Hurting Profits at U.S. Companies
BYLINE: By BART ZIEGLER, AP Business Writer
DATELINE: NEW YORK
KEYWORD: Week's Business
BODY:
The anti-inflation austerity plan that has slowed Brazil's economy to a
near standstill is reaching into the balance sheets of U.S. companies thousands
of miles away.
This past week, Whirlpool Corp. reported its first-quarter profit fell 27.5
percent due to the impact of the economic plan on its Brazilian affiliates.
Whirlpool Chairman David R. Whitwam predicted the Brazilian problems would
hurt the appliance maker's operating results into the second quarter before
things gradually improve.
Ford Motor Co. also warned this past week that its earnings could be hurt if
current conditions continue in Brazil, where it makes cars through a joint
venture with Volkswagen AG.
Earlier, Caterpillar Inc. blamed lower first-quarter earnings in part on
slower sales in the South American nation. Also, J.P. Morgan & Co., BankAmerica
Corp. and Chemical Banking Corp. said they received lower interest payments or
no interest payments at all on Brazilian loans in recent months.
Some of the revenue softness felt by U.S. companies can't be traced directly
to the Brazilian austerity plan, since it only was launched last month. But
economists warn that many foreign companies operating in Brazil soon will feel
the crimp unless they take steps to export products they make in the nation.
Brazilian President Fernando Collor de Mello initiated his
inflation-fighting plan a day after taking office March 15. Its main feature is
an 18-month freeze on bank accounts with more than the equivalent of $$1,200,
and a limit on money market withdrawals to $$600 or 20 percent of the account,
whichever is greater.
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The Associated Press. April 28, 1990
The plan took an an estimated $$115 billion out of circulation overnight. It
has cut inflation sharply, but also sent the Brazilian economy into a tailspin,
with the automobile, construction and other industries virtually paralyzed.
Many Amercian companies have extensive operations in Brazil, the most
industrialized nation in South America and eighth-largest economy in the world.
Among them are Ford, Caterpillar, General Motors Corp., Johnson & Johnson, Union
Carbide Corp., Champion International Corp., Philip Morris Cos., Alcoa and
Quaker Oats Co.
Javier Murcio, an economist with the economic research firm DRI-McGraw-Hill,
said the short-term impact of the anti-inflation plan could be severe on
Brazilian operations of these companies.
"It will take lots of strong nerves. In the short term it's going to be very
bumpy," he said.
But over a longer period, U.S. companies may decide to export more goods from
their Brazilian operations, avoiding the troubled domestic market as much as
possible, he said.
"Using Brazil as an export launching pad is something companies have
discovered in the past few years and will continue to do," he said.
However, Mike Sherman, chief investment strategist for Shearson Lehman Hutton
Inc., said it may not be 50 easy to export manufactured goods that are made
specifically for the Brazilian market.
Johnson & Johnson, for one, says it doesn't have the option of exporting its
Brazilian goods because "we tend to manufacture in individual countries for sale
in that country," said spokesman Robert Kniffin.
Johnson & Johnson makes the same array of hospital and consumer products in
Brazil as it does in the United States and elsewhere. he said.
"Our plants are operating but there has been a noticeable decline in sales of
products." he said.
Johnson & Johnson said Thursday its first-quarter earnings dropped 23 percent
due mainly to a $$125 million charge. The charge primarily was due to paying off
an Argentinian subsidiary's loan, but part of it came from problems in Brazil,
Kniffin said.
Murcio said the Brazilian operations of foreign companies have been a bright
spot and should continue to do well once the short-term trouble from the
economic plan eases. In the long. run, he said, all companies operating in
Brazil should benefit from lower inflation.
"Even despite the economic problems in Brazil in the recent past, the
Brazilian operations tended to be the ones that have been the fastest growing
and most profitable," he said.
In other business and economic news this past week:
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The Associated Press, April 28, 1990
-Junk bond pioneer Michael Milken pleaded guilty to six felony charges and
agreed to pay $$600 million in fines and penalties stemming from the biggest
securities fraud case ever against an individual.
-Financier James Goldsmith scrapped his $$22 billion takeover attempt of BAT
Industries PLC, which would have been one of the largest acquisitions in
history. In addition the British conglomerate agreed to sell its Saks Fifth
Avenue upscale fashion store chain to Investcorp International Inc., a
multinational investment group, for about $$1.5 billion.
-Ames Department Stores, an Eastern discount chain, filed for protection from
creditors under Chapter 11 of the bankruptcy laws.
-President Bush removed Japan from a "hit list" of countries judged to have
erected the most offensive trade barriers against American products, rewarding
Japanese efforts to ease trade tensions between the two economic superpowers.
-Donald Trump said he is considering selling or refinancing virtually every
major asset he owns, including the Trump Shuttle, his Northeastern airline.
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2ND STORY of Level ! printed in FULL format.
Copyright (c) 1990 McGraw-Hill, Inc.;
Business Week
April 30, 1990
SECTION: INTERNATIONAL BUSINESS; Number 3157; Pg. 44
LENGTH: 608 words
HEADLINE: COLLOR KICKS OFF THE GREAT BRAZILIAN SELL-OFF
BYLINE: Jeffrey Ryser in Sao Paulo
HIGHLIGHT:
And first on the block is Petrobras, the sprawling, state-owned oil giant
BODY:
They're everywhere in Brazil, the green and yellow BR logos of the state
oil monopoly, Petrobras. On filling stations, chemical plants, fertilizer
factories, and even mines in the Amazon, the colors of Petrobras show the long
reach of the state economy.
Now, the oil giant is squarely in the sights of Brazil's new President
Fernando Collor de Mello. He wants to cut Petrobras down from a sprawling
industrial conglomerate to a company that concentrates on its core oil
businesses. The downsizing would be the model for a multibillion-dollar
privatization program. Thousands of jobs will be lost.
But Collor, who only took office on Mar. 16, is already in such hot water
that some observers doubt he'll be able to close a single gas station. Middle-
and upper-class Brazilians have been hurt by his double whammy of a freeze on
bank accounts and drastic tax hikes. While silent now, they could become a
formidable opposition if the current recession deepens and unemployment surges.
Collor seems to be hoping quick moves will keep him ahead of the mob. On
Apr. 11, Brazil's National Congress cleared his monetary and fiscal plans,
which have. brought raging inflation to a screeching halt. Collor now wants to
raise funds and slash government spending further to reduce a federal deficit
that hit almost $ 25 billion last year. One way to raise money quickly 15 to
sell off state industries. Collor might be able to get $ 3.5 billion for
Petrobras assets. The company's nonoil operations accounted for one-third of its
$ 13 billion in sales last year and almost half of its $ 160 million in profits.
Collor has already begun the job by dissolving Petrobras' $ 2 billion
international trading arm, Interbras, which dealt in everything from chickens to
weapons. Brazil's Congress is supporting this plan, but it wants final
approval of all future privatizations.
As Collor slashes away at the oil conglomerate, his chief allies will be the
company's new president, Luiz Otavio da Motta Veiga, 39, and Veiga's boss,
Infrastructure Minister Ozira Silva, 59, who headed up Petrobras two years ago.
They may lead off by selling the two biggest Petrobras subsidiaries, its
Petroquisa petrochemical and Petrofertil fertilizer operations. Foreign chemical
concerns such as France's Rhone-Poulenc have expressed some interest.
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(c) 1990 McGraw-Hill, Inc., Business Week, April 30, 1990
SUGAR SHOCK. Collor wants to sell off as much as $ 7 billion worth of the
government's prime assets over the next 40 months. Besides Petrobras, auction
candidates include the mining operation Companhia Vale do Rio Doce and several
of the big steel units once controlled by Siderbras. To give the sales a push,
Collor's economic team 15 concocting a novel financing scheme that would require
banks and other financial institutions operating in Brazil to put 3% to 4% of
their assets into nontradable 'participation certificates,'' or scrip, that
could only be used for privatizations.
Even a stripped-down Petrobras will not be a manager's dream. Collor's
austerity measures may drive gasoline sales through the floor this year,
slashing the company's revenues. Collor may not be able to cut the $ 350 million
Petrobras is losing each year blending sugar cane alcohol into gasohol because
the program benefits the impoverished northeast, his stronghold.
Still, the odds are that big chunks of Petrobras will be sold. That would be
a big step for Brazil and Latin America. where state companies are usually
sacrosanct. ''There is no turning back,'' says Collor, borrowing a phrase from
Britain's privatization leader, Margaret Thatcher. If he's right, lots of green
and yellow signs will become souvenirs.
GRAPHIC: Photograph, FILL 'ER UP WITH FIREWATER, PETROBRAS' ALCOHOL FUEL PROGRAM
LOSES $ 350 MILLION A YEAR PAULO FRIDMAN
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163RD STORY of Level 1 printed in FULL format.
Copyright (c) 1990 The Bureau of National Affairs, Inc.
International Trade Reporter
June 27, 1990
Vol. 7, No. 26; Pg. 963
LENGTH: 592 words
SECTION: GENERAL DEVELOPMENTS: Latin America.
TITLE: MOSBACHER URGES BRAZIL TO ALLOW INVESTMENT IN TELECOMMUNICATIONS,
INFORMATICS SECTORS.
TEXT:
SAO PAULO - (By a BNA Special Correspondent) -- U.S. Secretary of Commerce
Robert Mosbacher has asked that Brazil permit foreign investment in
telecommunications, informatics, mining, and aviation sectors and suggested that
Brazil loosen restrictions and allow foreign purchase of 51 percent or more of
state-owned companies now scheduled for privatization.
Under the new economic plan announced by President Fernando Collor de
Mello shortly after he took office on March 15, many government enterprises such
as steel and port services holding companies are scheduled to be sold to private
investors.
During his visit to Brazil June 19-20, Mosbacher met with President
Collor and numerous Cabinet ministers. Mosbacher's trip was described as
"exploratory." The secretary was accompanied by CEOs from U.S.
telecommunications, computer, aircraft, aerospace, and wind-power generation
industries.
Brazil's economics minister, Zelia Cardoso de Mello, said she would study
the proposal for foreign participation in companies slated for privatization,
Mosbacher reported.
U.S. Ambassador Richard Melton acknowledged that such equity participation
could require changes in Brazilian legislation and the constitution. Investment
in the mining and aviation sectors and most utilities is reserved for Brazilian
nationals. Foreigners may own a maximum of 30 percent of non-participating
stock in informatics companies.
In a speech before the American Chamber of Commerce. Mosbacher said that the
United States was "encouraged that the Collor administration plans to remove
barriers to acquisition of foreign technology." Brazil's access to modern
technology has been hampered by policies that require government approval of all
contracts for transfer of technology, and limitations on royalties and
remittances.
Brazil views transfer of technology as a grant/sale and not as a license.
The typically permitted period of a transfer of technology contract is five
years, and the government prohibits restrictions against sale of know-how by the
licensee after the term of the contract. The government has acknowledged that
the policy has retarded modernization of its industries and is studying changes
to its industrial laws and policies, with a report and possible legal changes
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PAGE
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to be issued this week.
No Agreements Yet
Mosbacher said that discussions between representatives of U.S.
telecommunications companies and Brazil had not concluded with actual
agreements, but that both sides were interested in continuing discussions. The
Brazilian telephone system badly needs to be modernized, according to industry
experts. Telephone callers from the commercial prefixes of downtown Sao Paulo
and Rio de Janeiro often must wait 10 minutes or more to get a dial tone.
Pointing at perhaps the most pervasive problem of the Brazilian economy,
Mosbacher said that a successful economy "must have relatively little
interference by government
It must have rules that are clear, predictable,
and non-intrusive
# A number of American business people at the luncheon
said that they were hogeful that the reforms initiated by the Collor
administration would truly open the economy to foreign products and added that
they were waiting to see concrete results from the promised changes.
Mosbacher was accompanied by corporate representatives from Ameritech
International, Bell Atlantic Mobile Systems, Cray Research, the Ferro Corp.,
Hughes Aircraft Systems International, Textron Inc., General Datacom Industries
Inc., and U.S. Windpower Inc.
LEXIS® NEXIS® ® LEXIS® ® NEXIS R
THE WALL STREET JOURNAL WEDNESDAY, JULY 25, 1990 A9
TIONAL
Latin Squeeze: Brazil's Moves to Reduce Inflation
Trigger Recession and Hurt U.S. Companies There
Continued From First Page
tomers a huge markup between shipment
import tariff of 60%, that makes imported
company hired workers to stand in the
and payment.
appliances attractive.
long lines at Sao Paulo banks. They would
Even while grappling with disruptions
Or consider what Whirlpool touts as its
take money given them by another Molex
caused by the Collor plan, foreign manu-
"world washer." David R. Whitwam, its
employee, deposit it and go to the.end of
facturers in Brazil are scrambling to meet
chief executive, says the machine sells for
the line to wait for the next transaction.
the threat of import competition, which
$500 to $600 in Brazil but would cost just
For now, the game plans of most U.S.
promises to be the biggest challenge of all.
$250 in the U.S. One reason: The com-
companies are simple: Stem the bleeding
For years, Brazil's strict curbs on imports
pany's engineers in Benton Harbor spent
and try to devise a strategy for the future.
and rules requiring that products be made
years designing such gizmos as electronic
That's easler said than done. "Forecasting
with Brazilian components protected do-
controls that fine-tune the spin and timing
down here is absolutely impossible,' says
mestic companies. But as a result, their
of wash cycles. But the local-content rules
Robert Frey, president of Whirlpool do
factories were very inefficient. Molex
forced the company to spend twice as
Brasil. At Molex, managers now must up-i
found the quality of some made-in-Brazil
much for Brazil-made controls as it would
date their three-year Brazil plan every
components SO poor that it had to inspect
pay in the U.S. or Far East.
three months to keep pace with changes.
every piece of metal and plastic entering
Not surprisingly, Whirlpool now is con-
"I took my dartboard" to develop the lat-
its plant. That improved its products, but
sidering importing components such as
est plan, jokes James Cummings, whose
the company's productivity in Brazil was
electronic instruments or motors from its
job at Molex is to stem the red ink from
half that of its other foreign operations.
suppliers around the world. It also might
Brazil.
Many New Decisions
brave the tariff to offer Brazilians a luxury
Now that the government is lifting such
item not made by its affiliates in Brazil: a
The effects of the Collor plan on Autola-
barriers as outright bans on some imports
side-by-side refrigerator-freezer with
tina, the giant auto maker owned by Ford
Motor Co. and Volkswagen AG, have been
and quotas on others, manufacturers have
through-the-door ice dispenser.
to decide what to make in Brazil and
Like- many other companies that have
harsh. Near the end of March, its parking
whether to use Brazilian or foreign-made
done business in Brazil for years, Whirl-
lots bulged with nearly 20,000 unsold vehi-
cles. Soon afterwards, it shut its plants for
parts. Last week; Xerox officials huddled
pool says it intends to remain in the coun-
at their Stamford, Conn., headquarters to
try. But with other options for multina-
five weeks and laid off 28,000 workers.
develop a five-year strategy on just that.
tionals opening up in places such as East-
When customers resumed buying cars,
Failure to do SO could leave the company's
ern Europe and Mexico, Chairman Whit-
Autolatina, like Tokheim, discovered that
Brazilian office products vulnerable to bet-
wam warns: "If Brazil doesn't present sta-
their tastes had changed. Suddenly, they
ter-made or less-expensive imports, says
bility as well as growth opportunities, all
shunned luxury and snapped up economy
David R. Myerscough, president of Xerox's,
the companies have alternatives."
cars such as the basic version of the Gol, a
Americas Operations.
Tokheim, meanwhile, already is chas-
two-door hatchback. Autolatina had to
With appliance imports permitted for
ing business elsewhere: the Soviet Union.
scramble to get the parts to meet the shift
the first time in years, Whirlpool confronts
After spending about $4 million in Brazil,
in demand, and it took two months to
a similar problem. The company found, for
"we're probably not going to put as much
change the model mix, says Miguel Jorge,
example, that 15 key refrigerator compo-
money in," says John E. Overmyer, the
vice president for corporate affairs.
nents are up to six times more expensive
chief executive. "In fact, we probably
A Wave of Strikes
in Brazil than in the U.S. Even with a hefty
won't put any money in."
Then, the strikes began. Because the
Collor plan abruptly ended automatic in-
dexing of wages to inflation, unions de-
manded wage increases to make up for,
lost buying power. Monthlong strikes at
Autolatina cost production of 35,000 cars
and 2,700 trucks, the company estimates.
All but one of the strikes has ended, but
the company says that turned violent last
Friday as workers damaged cars and van-
dalized buildings. Companies that avoided
walkouts had trouble getting parts: Their
Photo Copy Preservation
suppliers had been struck.
At Whirlpool's three Brazilian affiliates,
strikes were settled by relatively modest
wage increases-of about 30%. But labor
peace is hardly guaranteed. "A settlement
here may be good until the next month,
when the latest inflation rate is an-
nounced,' Mr. Frey says.
Another challenge is to explain all this
to corporate headquarters back home.
When Mr. Cummings is asked the seem-
ingly innocuous question, "How's busi-
ness?" he replies: Do you want to talk
dollars or volume?'
In dollars, Molex's business in Brazil is
down to 60% of its level before the Collor
plan was announced. But unit volume looks
better, at 80% to 85% of the earlier level
The difference: With inflation at a rela-
tively tame monthly rate of 10% in June,
the company no longer has to charge cus-
Money Locked In
"The risk associated with this kind of
operation is that you ve got your money
tied up until- stability is reached, says
James F. Swallow, a manufacturing spe-
cialist at A.T. Kearney, a consulting
firm.
50
ENTS
In Brazil, U.S. companies are being be-
set by intermittent strikes, supply short-
WSJ
ages and overnight shifts in demand for
Latin Squeeze
their products. Whirlpool had been accus-
7-25-90
tomed to labor harmony at its Embraco
S.A. affiliate, which makes refrigerator
Brazil's Moves to Curb
compressors, but it recently found strikers
in the plant using bullhorns to urge others
Its Inflation Also Curb
to join them. Embraco managers grabbed
their own bullhorns and tried to out shout
the strikers. That strike, and walkouts at
U.S. Concerns' Profits
two other Whirlpool affiliates, have now
been settled.
For Tokheim Corp., of Fort Wayne,
Collor's Freezing of Money
Ind., sales of its gasoline pumps made in
the Amazon region suddenly evaporated
Brings On Business Slump
after the Collor plan was unveiled March
16. Today, orders are trickling back, but
And Intermittent Strikes
there's a hitch: Customers want electronic
gas pumps, which facilitate changing
prices, now that the government has eased
Wishing We Weren There
controls. The company had designed me-
chanical pumps especially for Brazil. Tok-
heim is rushing to produce electronic
By ROBERT L. ROSE
pumps at the plant later this year
Staff Reporter of THE WALL STREET JOURNAL
Three years ago, expansion-minded ex-
Many Attractions
ecutives at Whirlpool Corp.'s headquarters
It's easy to understand why U.S. manu-
in Benton Harbor, Mich., summed up the
facturers have long eyed Brazil. The coun-
world on a single sheet of paper. Using the
try accounts for half of South America and
colors of a traffic light, they graded each
is bigger than the continental U.S. It has
area of the globe on qualities such as busi-
abundant mineral resources. And with a
ness climate and market potential.
population of 150 million, more than double
In what was dubbed the stoplight
that in 1960, it has an ample labor supply.
chart, Brazil and South America as a
In addition, marketers such as Whirlpool,
whole mostly earned stoplights. Business
which notes that only about one in four of
climate? Red. Barriers to entry? Red. Fi-
Brazilian homes with electricity has a
nancial stability? Red. And so on.
washing machine, drool over the potential
Now, Brazilian President Fernando Col-
of a growing middle class.
lor de Mello's sweeping, four-month-old
Consequently, more and more U.S. com-
anti-inflation and economic-reform plan
panies have been drawn to Brazil, and
has U.S. companies seeing red for other
many of their operations have grown quite
reasons. The plan; among other things,
large. At the end of 1988, U.S. corporations
froze much of the country's money, re-
had $11.8 billion invested, representing
placed the cruzado with the cruzeiro,
nearly a third of overall foreign invest-
caused foreign-exchange translation losses
ment in Brazil. Xerox Corp., with 4,000 em-
for companies and triggered a recession.
ployees at three locations in the country:
has raised sales of its office products to
Some Corporate Victims
some $600 million to $700 million in Brazil.
Caterpillar Inc., which earned about
Caterpillar employs about 5,000 workers in
$100 million last year in Brazil, now ex-
the country
the
pects a 1990 loss there. Whirlpool's overall
For all their troubles, many U.S. execu-
earnings: are expected by analysts to
tives still see the Collor plan as the best
plunge at least 30% in the second quar-
chance to curb runaway inflation and pry
ter because of a sharp swing to a loss at its
open the Western world's eighth-largest
Brazilian operation; the company declines
economy. Roiled by hyperinflation, Brazil
to comment. And Aluminum Co. of Amer-
has had little economic stability in recent
ica says its share of its Brazilian affiliate's
years. U.S. managers have had to spend
first-half profit skidded 90% to $6 million.
more time managing money than manu-
Many companies expect the trouble to per-
facturing
sist into 1991.
Last year, for instance, as inflation ran
We re wishing we weren there, says
at a 1,765% annual rate, Molex didn't ship
Frederick A. Krehbiel, chief executive of
products for the first 10 days each month;
Molex Inc. The Lisle, Ill., maker of electri-
it took that long to haggle over price In-
cal connectors has made money in just two
creases with customers and suppliers. And
of its eight years in Brazil.
in a frantic dance to beat inflation, the
For manufacturers that thought only
Please Turn to Page A9, Column 4
banks lost bundles in Brazil, the economic
upheaval illustrates the risks of going
global Executives often portray interna-
expansion'as the key to growth, But
although they rarely expect beceasy,
the Brazilian surprises.show that even the
biggest and most patient global investors
can be clobbered by a volatile locallecon-
omy and a government desperate to con-
trol it. Last month; when Caterpillar hinted
at the extent of its problems there, its
stock promptly lost more than $1 billion of
market value in two days.
Photo Copy Preservation
To: Mark Lange
Carolyn Cawley
From: Jaylene Hobrecht
P-2 of 11-26-90
draft for Jant Session
Brazil
Facts and Information:
- The Federative Republic of Brazil is the fifth largest
country in the world. It's 3.3 million square miles.
rozel
- Brazil was discovered in 1500, by Pedro Alares Cabral,
just eight years after America.
- Brazil has had three capitals- Salvador, Rio de Janeiro,
and, since 1960, the new city of Brasilia. us NY, Philadelphia, D.C.
Beazil
of
- The Portuguese referred to the new colony as "The Island
of Santa Cruz" (holy cross)
- Independence Day is September 7 (intraduction)
- The national hero is Jose legisletor Bonifacio finds. de Andrada Silva (Intratualing)
envisioned though capital
- Brazil is often called "the land of the future. " (Introduction)
p.4 - Business lunch remarks
- The national flag is green with a yellow diamond is in the
Nations
center, containing 23 stars representing the Southern
Cross, the states, and the Federal District. Across the
sphere is a white band that says; Orden e Progresso."
(order and Progress)
ORdeM
- Industry consists of coffee, sugar, airplanes, and
automobiles
- Brazil has the largest coastline. It is like both of ours
put together.
- They consider themselves the fathers of aviation.
?
- This is the 100th year anniversary of the Inter-American
System.
- Brazil's most popular soccer team is called, Flamengo.
- A sport that is found no where else in the world is called
Capoeira. It is a fight, a dance and a bit of judo all
rolled into one.
177
Photo Copy Preservation
THE CHRISTIAN SCIENCE MONITOR
Friday, July 27, 1990
IMPORTS WELCOME
Brazil Beckons Businesses Abroad
Foreign companies find new opportunities as Collor government dismantles trade barriers
ROBERT HARBISON STAFF
the price of a used Brazilian-
Y
By Julia Michaels
made 1985 station wagon.
Special to The Christian Science Monitor
Luxury cars, such as Rolls Royce,
SÃO PAULO, BRAZIL
RP
A
S Brazil's new president,
CALCULAD
Mercedes Benz, and Jaguar, may
also now be imported at a lower
cost.
Fernando Collor de Mello,
And Japan's Toyota, which
now makes only jeep-type vehi-
opens up South America's
largest market to trade, United
cles in Brazil, is thinking of im-
porting passenger cars. "Brazil
States and other foreign busi-
was never totally discarded," says
nesses are discovering a growing
a company source. "We need to
number of opportunities.
be sure about a return [on invest-
As part of Mr. Collor's plan to
ment]. The reduction in the local
revitalize Brazil's hyperinflated
content requirement and the re-
economy, a 15-year-old prohibi-
moval of price controls [in the
tion on the import of thousands
11/10/20
of products - cars, toys, appli-
Collor plan] are an improve-
ment."
ances - was lifted in May.
These and other products bear
Asian companies stand to gain
high tariffs that are to be lowered
much from Brazil's opening.
Many that did not exist when
under a four-year program an-
Brazil first began to allow in
nounced in June.
Tariffs on some products, like
multinationals already do busi-
ness in neighboring countries
textiles and related machinery,
have already been reduced. A law
such as Chile and Argentina.
banning import of many com-
Japan's minority-owned Sharp do
puter products is under review.
Brasil has said It will import pro-
"In the whole world, we mar-
grammable computers, electronic
diaries, and miniature televisions
ket other products besides our
AV20
beginning in October.
cameras and film," says Polaroid
do Brasil president George Nie-
Areas of high-technology, in-
cluding telecommunications and
meyer. "But we haven't done so
computer equipment, offer the
here because of import quotas. As
biggest potential markets to for-
the government eliminates these
restrictions, we intend to market
eign manufacturers. A US gov-
the whole Polaroid line."
ernment market assessment put
the 1990 Brazilian telecommuni-
With additional sales of sun-
cations market at $3.2 billion.
glasses, videotapes, and computer
diskettes, Mr. Niemeyer expects
American companies, including
American Telephone & Tele-
1990 revenues to jump to $15
million, from last year's $10 mil-
graph and Motorola, are already
IMPORTS COMING TO SÃO PAULO: Sharp do Brasil has said it will import
lion. Eventually, the Brazilian
preparing to help Brazil modern-
computers, electronic diaries, and miniature televisions beginning in October.
ize and privatize much of its tele-
market could equal that of Spain,
communications network.
he says, where Polaroid sells $40
istry. But now, "the economic en-
different from one in Los Angeles
million a year.
"This is a country that's rid-
vironment is turning around and
or New York, except for the fact
dled with old technology," said
Brazil has long been touted as
we are fixing clear rules for the
that it's summer in the northern
Charles Johnson, chairman of
"the country of the future." But
development of trade and invest-
hemisphere.
General Datacomm Industries
burdened for the last decade by
ment and the insertion of Brazil
But look closer: Unlike those
Inc., on a recent mission to Brazil
inflation and the third world's
into the international economy."
US metropolises, the cars in São
largest foreign debt, most of the
led by US Commerce Secretary
Mr. Velloso expects imports to
Paulo have no cellular phones or
Robert Mosbacher.
potential consumer market in the
grow by 15 percent this year from
fuel injection. The designer cloth-
Mr. Johnson's telecom-
country of 145 million remains
$18 billion in 1989. The US and
ing is mostly made of synthetics.
hidden. On top of that, Collor's
munications company does busi-
the European Community are
The rotary dial telephone of-
ness worth only about $200,000 a
efforts to bring down inflation,
the two biggest sources of Brazil's
ten gives a busy signal even when
year in Brazil, but hopes the
which include tight fiscal and
imports.
no one is talking because circuits
opening to foreign suppliers will
monetary policies, have greatly
A lunch time look at Rua Oscar
are overloaded. And cars, clothes,
one day increase revenues a thou-
slowed spending and pushed the
Freire, Brazil's most chic thor-
phone service, appliances, and
sand fold.
economy into a recession.
oughfare, gives some idea of the
computers all cost significantly
Despite such high hopes, busi-
gap that officials hope imports
more than what Americans would
Vested interests
nessmen with Brazilian experi-
will help to fill.
have to pay.
Some analysts, skeptical about
ence counsel caution and pa-
The street is choked with cars
tience. The government, they say,
the new trade policy, say vested
manufactured on local assembly
Targeting the rich
has good intentions. But officials
business interests may keep out
lines by Volkswagen, Ford, Gen-
For now, foreign goods will be
face the challenge of carefully tak-
newcomers, especially in highly
eral Motors, and Fiat. Top bou-
targeted mostly at Brazilians rich
ing apart an old social, bureau-
government-controlled sectors
tique windows boast stylish winter
enough to feel at home on Rua
cratic, and business structure fa-
such as computer equipment.
clothing, made in Brazil. Inside
Oscar Freire, although some im-
voring local manufacture, before
But officials promise that their
fashionable restaurants, rock mu-
ported foodstuffs and textiles are
it can build a new one,
policies to free up trade and the
sic pours out from locally made
supplementing local supplies to
"The Taiwanese manufactur-
economy in general will at last
sound systems. Patrons' steaming
help keep prices down.
ers are very interested," says Al-
bring Brazilian buyers and for-
lunches have been prepared with
This strategy also applies to
berto Alexander, US commercial
eign sellers face to face.
the aid of microwave ovens and
the market for automobiles. For
officer in São Paulo. "They were
"The environment hasn't been
food processers, also produced in
instance, the government is allow-
going to come down here with
very propitious for investment,"
Brazil. The maitre d' takes a tele-
ing the importation of the Soviet-
suitcases full of [circuit] boards,
says Luiz Paulo Velloso Lucas, di-
phone reservation. A computer
made Lada automobile. ada's
and open them up on the street
rector of the industry and trade
tallies up each table's bill.
Samara brand hatchback will re-
and sell them.
I
told
them,
department of the economy min-
The scene appears not much
tail in September at $7,500 new,
Not yet.