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#CARD:Brazil:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  BRAZIL

October 1990
OFFICIAL NAME:  FEDERATIVE REPUBLIC OF BRAZIL

PROFILE
Geography
Area (1989):  8,511,965 sq. km. (3,290,000 sq. mi.). Cities (1989):
Capital--Brasilia (pop. 1.8 million).  Other cities--Sao Paulo (11
million), Rio de Janeiro (6 million), Belo Horizonte (2.3 million),
Salvador (2 million), Fortaleza (1.8 million), Recife (1.4 million),
Porto Alegre (1.4 million), Curitiba (1.4 million). Terrain: Dense
forests in northern regions, incl. Amazon Basin; semiarid along
northeast coast; mountains, hills, and rolling plains in the southwest
(incl. Mato Grosso); and coastal strip. Climate: Mostly tropical or
semitropical with temperate zone in the south.

People
Nationality:  Noun and adjective--Brazilian(s). Population (1989 est.):
150.1 million. Annual growth rate (1989):  2.1%. Density:  17.6 per sq.
km. (45.6 per sq mi.). Ethnic groups:  Portuguese, Italian, German,
Japanese, African, Indians, principally Tupi and Guarani linguistic
stock. Religion:  Roman Catholic (89%). Education:  Literacy--78% of
adult population. Health:  Infant mortality rate--109/1,000. Life
expectancy--61.3 yrs.  Work force (1989, 62.5 million):
Agriculture--35%. Industry--25%.  Services--40%.  Trade union
membership--about 6 million.

Government
Type: Federative Republic.  Independence: September 7, 1822.
Constitution: Promulgated October 5, 1988. Branches:
Executive--president (chief of state and head of government) popularly
elected to a single 5-year term. Legislative--Senate (81 members
popularly elected to 8-year terms), Chamber of Deputies (495 members
popularly elected to 4-year terms). Judicial--Supreme Federal Tribunal.

Political parties (with congressional representation):
Brazilian Democratic Movement Party (PMDB), National Reconstruction
Party (PRN), Liberal Front Party (PFL), Democratic Social Party (PDS),
Democratic Workers Party (PDT), Workers Party (PT), Brazilian Labor
Party (PTB), Liberal Party (PL), Brazilian Socialist Party (PSB),
Communist Party of Brazil (PC do B), Brazilian Communist Party (PCB),
Christian Democratic Party (PDC), Brazilian Social Democratic Party
(PSDB).  Suffrage:  Compulsory from 18-70. Subdivisions: 26 states,
federal district (Brasilia). Defense: 2.6% of 1990 government budget.
Flag: A yellow diamond on a green field; a blue globe with 23 white
stars and a band with "Ordem e Progresso" centered on the diamond. The
globe represents the sky and the vastness of the states and capital, and
green and yellow signify forest and mineral wealth.

Economy
GDP (1988): $352 billion. Annual real growth rate (1985-88): 5%. Per
capita GDP (1988): $2,434. Natural resources: Iron ore, manganese,
bauxite, nickel, uranium, gemstones, oil. Agriculture (12% of GDP):
Products--coffee, soybeans, sugarcane, cocoa, rice, beef, corn, oranges,
cotton, wheat. Land--17% arable, cultivable, or pasture. Industry:
Types--steel, chemicals, petrochemicals, machinery, motor vehicles,
consumer durables, cement, lumber, shipbuilding. Trade (1988):
Exports--$33.8 billion.  Major markets--US 26%, Japan 7%, Netherlands
8%, FRG 4%, Italy 4%, Argentina 3%.  Imports--$14.7 billion.  Major
suppliers--US 21%, FRG 10%, Japan 7%, Argentina 5%, France 4%. Official
exchange rate: Cr 72.3=US$1 (Aug. 1990; changes frequently). Foreign
direct investment and reinvestment in Brazil (registered with Central
Bank as of June 1988):  $30.7 billion. Sources--US $8.7 billion (28%);
FRG $4.8 billion (16%) Japan $2.9 billion (10%) Switzerland $2.9 billion
(9%), UK $1.9 billion (6%), Canada $1.4 billion (5%). Fiscal year:
Calendar year.

Membership in International Organizations
 UN and some of its specialized and related agencies, World Bank and the
International Monetary Fund; General Agreement on Tariffs and Trade
(GATT); Inter-American Development Bank (IDB); Organization of American
States (OAS), Rio Pact, Latin American Integration Association (ALADI);
International Sugar Organization (ISO); International Cocoa Organization
(ICCO); International Coffee Organization; INTELSAT; Group of 77.

PEOPLE
  With an estimated population of 150 million, Brazil is the most
populous country in Latin America and ranks sixth in the world.  Most of
the people live in the south-central area, which includes the industrial
cities of Sao Paulo, Rio de Janeiro, and Belo Horizonte.  Urban growth
has been rapid; by 1984 the urban sector included more than two-thirds
of the total population.  Increased urbanization has aided economic
development but, at the same time, has created serious social and
political problems in the major cities. Four major groups make up the
Brazilian population: indigenous Indians of Tupi and Guarani language
stock; the Portuguese, who began colonizing in the 16th century;
Africans brought to Brazil as slaves; and various European and Asian
immigrant groups that have settled in Brazil since the mid-19th century.
The Portuguese often intermarried with the Indians; marriage with slaves
was common. Although the basic ethnic stock of Brazil was once
Portuguese, subsequent waves of immigration have contributed to a rich
ethnic and cultural heritage. From 1875 until 1960, about 5 million
Europeans emigrated to Brazil, settling mainly in the four southern
states of Sao Paulo, Parana, Santa Catarina, and Rio Grande do Sul.  In
order of numbers, after the Portuguese, the immigrants have come from
Italy, Germany, Spain, Japan, Poland, and the Middle East.  The largest
Japanese community outside Japan is in Sao Paulo.  Despite class
distinctions, national identity is strong, and racial friction is a
relatively new phenomenon. Indigenous full-blooded Indians, located
mainly in the northern and western border regions and in the upper
Amazon Basin, constitute less than 1% of the population.  Their numbers
are rapidly declining as contact with the outside world and commercial
expansion into the interior increase.  Brazilian government programs to
establish reservations and to provide other forms of assistance have
been in effect for years but are increasingly controversial. Brazil is
the only Portuguese-speaking nation in the Americas. About 90% of the
population belongs to the Roman Catholic Church, although many
Brazilians adhere to Protestantism and spiritualism. As its geography,
population size, and ethnic diversity would imply, Brazil's cultural
profile and achievements are extensive, vibrant, and constantly
changing.  Popular culture predominates, with a thriving popular music
industry, relatively active cinema, and a highly developed television
empire, producing an enormous number of soap operas (telenovelas) that
have found a world market.  The visual arts, especially painting, are
lively, while literature and the theatre, although important, play a
less prominent role in this fast-moving, media-oriented society.
Traditionally, Brazilian culture has developed around regional subjects,
with the country's northeast normally identified with national themes,
both nativist and Afro-Brazilian, while the urban centers of Sao Paulo
and Rio de Janeiro have demonstrated a tendency toward a more
international, and European-oriented expression.  With the post-1964
push to a more integrated national culture, these tendencies have
diminished somewhat but remain central to understanding the uniqueness
of this vast nation.

HISTORY
  Recent archeological discoveries suggest that Brazil may have been
inhabited as long ago as 40,000 years.  Additional research must be
undertaken before these hypotheses, which may push the history of
Western Hemisphere human occupation back by as many as 20,000 years, are
universally accepted.  In addition, there is continuing speculation that
Brazil may have been visited by the 15th century Portuguese  explorers
who sailed widely in the South Atlantic, trading with Africa and
settling the Azores and Madeira Islands. Brazil was formally claimed in
1500 by the Portuguese navigator Pedro Cabral.  It was ruled from Lisbon
as a colony until 1808 when the Portuguese royal family, having fled
from Napoleon's army, established the seat of government first in
Salvador and later in Rio de Janeiro.  Brazil became a kingdom under Dom
Joao VI, who returned to Portugal in 1821, leaving his son, Dom Pedro I,
as regent. Dom Pedro I successfully declared Brazil's independence on
September 7, 1822, and became emperor. Dom Pedro II, ruled from 1831 to
1889, when a federal republic was established. From 1889 to 1930, the
government was a constitutional democracy with a limited franchise. The
presidency alternated between the dominant states of Sao Paulo and Minas
Gerais.  This period ended with a military coup by Getulio Vargas, who
remained as dictator until 1945.  From 1945 to 1961, Eurico Dutra,
Vargas, Juscelino Kubitschek, and Janio Quadros were the elected
presidents.  When Quadros resigned in 1961, he was succeeded by Vice
President Joao Goulart. Goulart's years in office were marked by high
inflation, economic stagnation, and the increasing influence of radical
political philosophies.  The armed forces, alarmed by these
developments, staged a coup on March 31, 1964.  The coup leaders chose
as president Army Marshal Humberto Castello Branco, who was elected by
the National Congress on April 11, 1964.  Castello Branco was followed
by retired Army Marshal Arthur da Costa e Silva (1967-69), Gen. Emilio
Garrastazu Medici (1969-74), and retired Gen. Ernesto Geisel (1974-79).
Geisel began the political liberalization process, known as abertura  or
"opening," which was carried further by his successor, Gen. Joao
Baptista de Oliveira Figueiredo (1979-85).  Figueiredo not only
permitted the return of politicians exiled or banned during the 1960s
and early 1970s but also allowed them to run for state and federal
offices in 1982, including the first direct elections for governor since
1966. However, the electoral college, consisting of all members of
Congress and six delegates chosen from each state, continued to choose
the president. In January 1985, the electoral college picked Tancredo
Neves from the opposition Brazilian Democratic Movement Party (PMDB).
However, Tancredo Neves became ill in March and died a month later. His
vice president, the former Senator Jose Sarney, who had been acting
president since inauguration day, became president upon Neves' death.
Brazil completed its transition to a popularly elected government in
1989, when Fernando Collor de Mello won 53% of the vote in the first
direct presidential elections in 29 years.

GOVERNMENT
  Brazil is a federative republic with broad powers granted to the
federal government.  A Constituent Assembly drafted a new constitution
in late 1988.  At the national level, the constitution establishes a
presidential system with three "independent and harmonious
powers"--executive, legislative, and judicial.  It forbids delegation of
powers and provides for a series of checks and balances. The president
is assisted by a vice president (elected with the president), a
presidentially appointed cabinet, and specialized administrative and
advisory bodies. The bicameral National Congress consists of 81 Senators
(three for each state and the federal district) elected to 8-year terms,
and 495 Deputies elected at large in each state to 4-year terms.  The
elections are based on proportional representation weighted in favor of
less populous states.  The next congressional elections are scheduled
for October 1990. The apex of the judicial system is the Supreme Federal
Tribunal.  Its 11 Justices, including the Chief Justice, are appointed
by the president to serve until age 70.  Brazil is divided
administratively into 26 states and a federal district, Brasilia.  The
framework of state and local governments closely parallels that of the
federal government.  Governors, elected for 4-year terms, have more
limited powers than do their counterparts in the United States.  This is
due to the highly centralized nature of the Brazilian system. The
limited taxing authority granted to states and municipalities--the only
territorial subdivisions of the states--further weakens their power.
The federal district, which moved from Rio de Janeiro to Brasilia in
April 1960, is governed by a governor and vice governor, both of whom
will be chosen in direct elections in 1990.

Principal Government Officials
President--Fernando COLLOR de Mello
Vice President--Itamar FRANCO
Foreign Affairs--Jose Francisco REZEK
Ambassador to the United States--Marcilio M. Moreira
 Ambassador to the United Nations--Paulo Nogueira

 Brazil maintains an embassy in the United States at 3006 Massachusetts
Avenue NW., Washington, DC 20008   (tel.  [phone]).
 Brazil maintains consulates general in New Orleans, New York, Chicago,
and Los Angeles, and consulates in Miami, Houston, Dallas, San
Francisco, and Atlanta.

POLITICAL CONDITIONS
  Following the 1964 military coup, the 13 existing political parties
were abolished, and two political organizations, the pro-government
National Renewal Alliance (ARENA) and the opposition Brazilian
Democratic Movement (MDB), were formed. In 1979, under a
government-sponsored bill approved by the congress, this two-party
system was abolished, and a multiparty system was allowed to reemerge.
In 1989, more than 20 political parties participated in the campaign.
The major parties are:  PMDB--Brazilian Democratic Movement Party
(Partido do Movimento Democratico Brasileiro). The country's largest
party suffered defections in the 1989 campaign. Known as the MDB from
1966 to 1979, under military-dominated governments, the PMDB includes
politicians ranging from conservative to left of center.  Most state
governors and almost all PMDB cabinet members belong to the conservative
wing of the party. PMDB popular support is strongest in urban areas.
PFL--Liberal Front Party (Partido da Frente Liberal). The country's
second largest party;  defeated in the 1989 presidential campaign, it is
now aligned with President Fernando Collor de Mello. The PFL espouses
views similar to those of the PDS, but looks to different political
leaders and maintains fewer ties to the military establishment. The PFL
is strongest in medium-sized towns and the more conservative cities,
especially in the northeast. It was founded in 1985 by Democratic Social
Party (PDS) dissidents. PSDB--Brazilian Social Democracy Party (Partido
da Social Democracia Brasileira). Led by Senator Mario Covas, the PSDB
was founded in 1988 and includes prominent politicians who quit the
PMDB, PFL, and PDT over political differences with national or state
leaders of those parties.  The PSDB advocates adoption of a
parliamentary system of government in Brazil. PDS--Democratic Social
Party (Partido Democratico Social). Founded in 1982, the PDS is the
modern version of the ARENA party, which represented GOB interests
during 21 years of military-dominated governments (1964-85). It
advocates using foreign capital for economic development. Its popular

support is greatest in certain rural strongholds and among upper/middle
class in urban areas.  PDT--Democratic Workers Party (Partido
Democratico Trabalhista).  The PDT is a populist party led by Leonel
Brizola. It is strongest in Rio de Janeiro and Rio Grande do Sul, where
Brizola was governor.  Much of its support comes from slum dwellers and
the rural poor.  Founded in 1980 by former members of the Brazilian
Labor Party (PTB). PTB--Brazilian Labor Party (Partido Trabalhista
Brasileiro). The PTB, founded in 1945, is a populist party without a
major national leader.  It strongly supports organized labor  but
advocates center-right positions on many economic issues.  PTB was the
party of Getulio Vargas, one of Brazil's most popular presidents. For
several decades, beginning in 1945, the PTB exercised political control
over Brazil's labor sector. PTB support currently is strongest among
urban working class, professionals, and small shopkeepers, particularly
in Sao Paulo and Parana states. PT--Workers' Party (Partido dos
Trabalhadores). Formed in 1978, the PT is Brazil's "European-style"
leftist party, with a clearly defined ideology and program, strict party
discipline, a hierarchical structure, and internal party democracy.  It
is strongest among intellectuals, organized labor, and the economically
disadvantaged. It draws considerable support from the
liberation-theology wing of the Catholic Church and from the labor
confederation, the sole Workers Central (CUT). In 1988, it won
mayoralities of important industrial cities, including that of Luiza
Erundina in Sao Paulo and Olivio Dutra in Porto Alegre.  In 1989, PT
presidential candidate Luiz Inacio Lula da Silva lost to Collor in the
second-round run-off election. PL--Liberal Party (Partido Liberal). The
PL is a center-right party that is popular among small businessmen and
has growing strength in Sao Paulo and Rio de Janeiro.  Presidential
candidate Guilherme Afif Domingos has given the party greater name
recognition. PRN--National Reconstruction Party (Partido da Reconstrucao
Nacional). The PRN was created by Collor in 1989  and served as the
vehicle for his 1989 presidential campaign.  Collor and his advisers
generally advocate free-market solutions to Brazil's economic problems.
His electoral support was greatest in rural areas and in small towns
across the country.
PCB--Brazilian Communist Party (Partido Comunista Brasileiro). Founded
in 1922, the PCB is ideologically communist but has cooperated with
mayors and governors of more moderate parties. It supported the Sarney
administration.  It maintains ties with West European communist parties
and identifies with Soviet President Gorbachev's reforms. PC do
B--Communist Party of Brazil (Partido Communista do Brasil). The PC do B
generally advocates more "revolutionary" positions than the PCB but has
supported noncommunist candidates. Its electoral support is based within
the universities. Former PCB members founded the party in 1961. In the
presidential elections, the PC do B was one of three parties in the
Brazilian Popular Front (PF) coalition formed to support the PT
candidacy of Lula. PSB--Brazilian Socialist Party (Partido Socialista
Brasileiro). Founded in 1946, the PSB, a leftist party enjoying little
popular support, was the third partner in Lula's PF. Brazil also boasts
several dozen small parties, some of which (e.g., National Mobilization
Party--PMN, Christian Democratic Party--PDC) are significant in specific
regions or states.

ECONOMY
  Brazil is a country rich in resources in resources and natural
advantages. To date, however, its economic performance has lagged behind
its potential. Economically, it is a country of contrasts ranging from
sophisticated economic centers around Sao Paolo to relatively
undeveloped trading outposts on the Amazon.  Industrial development has
been concentrated in the southeastern states of Rio de Janeiro, Sao
Paulo, Parana, and Rio Grande do Sul but is now expanding to include the
northeast and center west. In 1988, Brazil's gross domestic product
(GDP) totaled $352 billion, with an estimated per capita GDP of $2,434.
During the 1950s, GDP rose at an annual rate of more than 6%. It slowed
from 1963 to 1965 but averaged above 11% annually during the 1968-73
"economic miracle." Growth slowed between 1974-80 and from 1981 to 1983
was either negative or nominal.  In 1984, the economy began to improve
again, and during 1985-86, GDP grew more than 8% per year. After slowing
in 1987, growth dropped in 1988 to a negative -0.3% but climbed again in
1989 to 3%-4%.

Agriculture, Industry, and Natural Resources
 About one-half of Brazil is covered by forests.  The largest rainforest
in the world is located in the Amazon Basin and is so impressive in
character and extent that the entire Amazon region is identified with
it.  Recent migrations into the Amazon region and controversial
large-scale burning of forest areas placed the international spotlight
on Brazil.  The government has since reduced incentives for such
activity and has begun to implement an ambitious environmental plan.
Eastern Brazil has tropical and semideciduous forests and soil of
limited agricultural value; the nutrients in the small amount of humus
usually are exhausted after only a few years of farming.  The softwood
forests of the southern highlands still provide a substantial portion of
the construction timber used in Brazil.  However, fears that these
forests are being cut down so fast that they are in danger of extinction
within the next few decades have led the industry to move north.  Major
timber supplies for domestic and export markets now come from the
tropical hardwoods of the Amazon.  The thorn forests of the northeastern
interior contain dry, cactus-infested, drought-resistant vegetation, its
sparseness due as much to overgrazing and overcultivation as to the
unreliability of rainfall. In Central Brazil, the states of Mato Grosso,
Mato Grosso do Sul, Goias, and parts of Minas Gerais and Sao Paulo
contain substantial areas of grassland, with only scattered trees.
Unlike the plains of North America, the Brazilian grasslands are less
fertile, and large areas of these grasslands are best suited to
pastures. The agricultural sector employs 35% of Brazil's population and
accounts for about 12% of its GDP and almost 40% of the country's
exports. Except for wheat, Brazil is largely self-sufficient in food. It
is the world's leading exporter of coffee and orange juice concentrate;
the second largest exporter of cocoa and soybeans; and a major exporter
of sugar, meat, and cotton. During the past decade, in an effort to
expand its agricultural exports, Brazil began opening new regions to
cultivation. The most important of these are devoted to soybean
production in Mato Grosso do Sul, Rio Grande do Sul, Sao Paulo, Parana
and, more recently, Minas Gerais and Goias. Brazil also has expanded
cultivation of sugarcane, the raw material used to produce the ethyl
alcohol fuel that powers more than half of the nation's cars.  Brazil's
power, transportation, and communications systems generally have kept
pace with development, but, in recent years, facilities in some areas
have not met demand due to lack of investment and maintenance funds.
The country has a large and increasingly sophisticated industrial base,
producing basic industrial products such as steel, chemicals, and
petrochemicals and finished consumer goods and aircraft. A computer
industry is also emerging. Within the past decade, industry has been the
greatest contributor to economic growth.  Today, it accounts for nearly
35% of GDP and 60% of exports. Brazil is one of the world's leading
producers of hydroelectric power, with a potential of 106,500 megawatts.
 Existing hydroelectric plants provide 90% of the nation's electricity.
Two large hydroelectric projects, the 12,600-megawatt Itaipu Dam on the
Parana River -- the world's largest dam -- and the Tucurui Dam in Para
in northeast Brazil are in operation. Proven mineral resources are
extensive, and additional exploration is expanding the resource base.
Large iron and manganese reserves provide important sources of
industrial raw materials and export earnings.  Deposits of nickel, tin,
chromite, bauxite, beryllium, copper, lead, tungsten, zinc, and gold, as
well as lesser known minerals, are exploited. Oil exploration is less
urgent now, because of Brazil's reduced dependence on oil and to lower
world prices. High-quality coal, especially of the coking grade required
in the steel industry, is in short supply. The government is beginning
to implement coal extraction and gasification projects to tap Brazil's
ample deposits of low-grade coal in the south. Brazil's first commercial
nuclear reactor, Angra I, located near Rio de Janeiro, began operating
in early 1982.  Site preparations began the same year for Angra II and
III. With a combined capacity of 1,245 megawatts, these are the first of
eight nuclear plants envisioned under the 1975 nuclear accord between
the Federal Republic of Germany and Brazil.  However, continued troubles
with Angra I and scarce funds have slowed construction of nuclear
plants, limiting expansion for the foreseeable future to the two
reactors already under construction. Brazil also is engaged in research
to master the nuclear fuel cycle. The Brazilian government has
undertaken an ambitious program to reduce dependence on imported oil.
Imports previously accounted for more than 70% of the country's oil
needs but now account for only 50%. In addition to developing
hydroelectric, nuclear, and coal resources, Brazil has become a world
leader in the development of alcohol fuel derived from sugarcane.
Brazilian automotive gasoline is a mixture containing up to 22% ethyl
alcohol. Its auto manufacturers began large-scale production of 100%
alcohol-powered cars in 1979, and today more than 1.5 million are on the
road.  Alcohol production has not kept pace, however, leading to alcohol
shortages in 1989-90.   The Collor government cut alcohol subsidies, and
car makers have regarded to increase production of gasoline-powered
automobiles.

Economic Strategy
 Following the 1964 coup, the Brazilian government focused on two major
economic goals, high growth rates and control of inflation. In the
1970s, escalating oil prices, governmental indebtedness, and high
interest rates brought the Brazilian economy to a virtual standstill,
forcing reduced government expenditures and subsidies and income tax
increases.  Nevertheless, budget deficits have persisted. The combined
public sector deficit in 1989 was at least 7% of GDP. Taking office in
1985, the Sarney administration brought inflation to a halt by freezing
all prices and ending indexation of wages and other facets of the
economy. Real wage increases led to a consumer spending boom which
created shortages and tight profit margins. This plan collapsed in
November 1986, and inflation rose to record heights--1,700%--in 1989. In
addition, high levels of imports so reduced foreign exchange reserves
that interest payments on foreign loans were suspended in February 1987.
Foreign indebtedness rose to $112 billion (about $18 billion is held by
US commercial banks), the largest of any developing country. Debt
service claimed most of Brazil's balance of payments, and periodically
the federal government has suspended some forms of debt service,
including a de facto moratorium on payments to commercial banks in
September 1989. In the spring of 1990, President Collor introduced
measures to stabilize and liberalize the economy. The initial phase of
the program, which focused on drastically reducing liquidity and cutting
inflation, appeared to be achieving its objectives. Inflation slowed
nearly to zero within the first month, rising gradually to about 10%
monthly by August.  Although fiscal and monetary performance to date
have been convincing, it is still too early to guage whether Brasilia
will be successful over the long-term in eliminating government red ink.
 Collor has put into place the administrative machinery to implement an
ambitious privatization program and has opened Brazil's markets to
foreign goods. Foreign direct investment represents a relatively small
but important part of Brazil's capital base. The share of foreign direct
investment and reinvestment registered with the central investments
totaled $8.7 billion, largely in manufacturing and finance. The
constitution restricts  the entry of new foreign investors in the
financial services area, although US and other foreign institutions
established before the prohibition continue to have a prominent role.
The constitution also contains provisions that restrict investment in
petroleum and minerals exploration, health care, chemicals,
biotechnology, and new materials.  The congress has not yet completed
legislation on foreign investment.

Trade and Investment
  Brazil's industrial development strategy through the 1980's was based
on a policy that combined import substitution, foreign investment, and
government participation in and regulation of the economy.  This policy
contributed to significant growth and, in the late 1980's, to large
trade surpluses.  The country recorded a $19 billion surplus in 1988 and
$16 billion in 1989--a remarkable turnaround from the deficits
experienced at the beginning of the decade.

FOREIGN RELATIONS
  Traditionally, Brazil has been a leader in the inter-American
community and has played an important role in collective security
efforts as well as in economic cooperation in the Western Hemisphere.
Brazil aligned with the allies in both World Wars and, during World War
II, its expeditionary force in Italy played a key role in the allied
victory at Monte Castello.  It is a party to the Inter-American Treaty
of Reciprocal Assistance (Rio treaty) and the Organization of American
States (OAS).  In recent years, Brazil has given high priority to
expanding relations with its South American neighbors and is a founding
member of the Amazon Pact and the Latin American Integration Association
(ALADI), the successor to the Latin American Free Trade Association
(LAFTA). Brazil is a charter member of the United Nations and
participates in many of its specialized agencies.  It has contributed
troops to UN peacekeeping efforts in the Middle East, the former Belgian
Congo, and Cyprus. As Brazil's domestic economy has grown and
diversified, the country has become increasingly involved in
international politics and economics. The United States, Western Europe,
and Japan are primary markets for Brazilian exports and sources of
foreign lending and investment.  Brazil's dependence on imported
petroleum has resulted in more intensive political and economic ties
with Middle Eastern countries.  In the 1970s, Brazil expanded its
relations with black African countries.  In 1986, it introduced a
proposal at the UN General Assembly to establish a Zone of Peace and
Cooperation in the South Atlantic.  As an indication of Brazil's broader
international role, trade with other developing countries increased from
9% of the total in the 1970s to nearly 30% in 1983. The Brazilian

Government has diplomatic relations with the USSR, China, all of the
Eastern and Central European countries, and Cuba but not with Vietnam,
Cambodia, or North Korea.

US-BRAZILIAN RELATIONS
 The United States was the first country to recognize Brazil's
independence in 1822. Brazil's 19th-century leader, Emperor Dom Pedro
II, admired Abraham Lincoln and visited the United States during the
1876 centennial. President Eisenhower was given a hero's welcome when he
visited Brazil in 1960. Presidents Roosevelt and Truman made earlier
visits; President Carter visited in 1978 and President Reagan in 1982.
President Sarney visited the United States in 1986. In the 1950s and
1960s, Brazil received about $2.4 billion in US economic
assistance--$1.4 billion under the auspices of the US Agency for
International Development (AID) and the remainder under PL 480 (Food for
Peace) and Peace Corps programs.  After 1972, US programs stressed
training Brazilian in technology and physical and social sciences (in
the United States), especially at the graduate level.  Some 14,000
persons were trained by AID during this period, 22,000 from all US
Government sources.  In view of Brazil's impressive economic development
and its increased ability to obtain loans and technical assistance from
private and multilateral sources, US assistance programs were phased out
in the 1970s, major AID activities in Brazil ended in 1979, and the
Peace Corps program was ended in 1980.  Currently, AID maintains a small
advanced developing country program that emphasizes cooperation in
science and technology and family planning and responds to endemic
disease, emergencies, and natural disasters. The United States is
Brazil's most important commercial partner and largest investor.  The US
share of Brazilian trade averages 22%, and two-way trade amounted to
$14.3 billion in 1988. The growing diversification of U.S.-Brazil trade
has led to trade disputes.  Brazilian trade practices, including
prohibition of some imports and difficult import licensing procedures,
market reserve requirements on computer products, and the lack of
intellectual property protection (especially patents in certain
areas)--led to frictions with the United States and other major trading
partners. These culminated in 1988 and 1989, when the United States
named Brazil in a number of formal trade action and took retaliatory
steps against some Brazilian imports under US trade law. The US
objective was to stimulate negotiations as well as action by the
Government of Brazil to reduce the trade barriers in question. For its
part, Brazil was critical of the United States for singling it out and
of high US tariffs on products of interest to Brazil such as steel and
orange juice. Efforts by both sides during the middle and latter part of
1989 began to reduce the tensions arising from these issues. The
agreements between Brazil and the United States include a treaty of
peace and friendship; an extradition treaty; a joint participation
agreement on communication satellites; and scientific cooperation, civil
aviation, and maritime agreements. Brazil and the United States exchange
professors under Fulbright and other academic programs and carry out
university cooperation projects.

Principal US Officials
 Ambassador--Richard H. Melton
Deputy Chief of Mission--Robert E. Service
Economic Counselor--M. Gordon Jones
Commercial Counselor--Kevin C. Brennan
Political Counselor--John F. Keane
Public Affairs Counselor (USIS)--Robert Jordan
Defense Attache--BG Joseph Stringham, US Army

 The US Embassy in Brazil is located at Lote 3, Avenida das Nacoes,
Brasilia, DF (tel. [phone], telex 061-1091).  US Consulates General
are in Rio de Janeiro and Sao Paulo.  Consulates are at Porto Alegre and
Recife.   Branch offices of the US Information Service (USIS) and of the
US and Foreign Commercial Service are located in all of these cities and
Belo Horizonte.  Consular agents are in Manaus, Sao Luis, Belem, and
Salvador da Bahia.

Travel Notes
  Entry requirements:  Visas are required of US citizens. No
inoculations are required for entry.  Within Brazil, travelers may be
required to present a yellow fever certificate when transiting between
certain cities.
  Climate and clothing:  In most parts of the country, days range from
warm to hot, except during the rainy period from November through
February.  The extreme south of Brazil does get cold during the winter
(June-August).  Wear spring or summer clothes.
 Health:  Sanitation facilities in many places are being expanded.
Carefully prepared and thoroughly cooked foods are safe for consumption.
 Tapwater is not recommended.  Yellow fever, rabies, gamma globulin,
typhoid, and polio immunizations are recommended.
  Telecommunications:  Telegraph and long distance telephone services
are good.  Brasilia is two time zones ahead of eastern standard time;
however, time differences vary, due to daylight savings time, in both
Brazil and the United States.
 Transportation:  Direct air service is available.  Rio is the normal
point of entry, but Sao Paulo, Manaus, Recife, and Belem also have
international flights.  Domestic flights are expensive.  Trains are
limited.  Inter-city buses run frequently and are inexpensive but often
crowded.  Metered taxis with red license plates have relatively low
rates after 11 pm and on weekends.  Tipping is the same as in the US.
The highway system in southeastern Brazil and as far north as Salvador
is adequate, but road maintenance is sometimes incomplete. Security:
Street crime is common in Brazil's larger cities and tourists should
take precautions such as not wearing jewelry, flashing money, or
otherwise calling attention to expensive personal belongings.
  For more information, check the Department of State's Tips for
Travelers.
 Available from the Superintendent of Documents, US Government Printing
Office, Washington, DC  20402: American University.  Area Handbook for
Brazil. 1983. US Department of Commerce.  Overseas Business Reports.
Foreign Economic Trends.
Foreign Labor Trends.  US Department of State.  Key Officers of Foreign
Service Posts (Guide for Business Representatives).  Revised
triannually.

 Published by the United States Department of State --  Bureau of Public
Affairs  -- Office of  Public Communication --  Editorial Division --
Washington, DC -- October 1990,  Editor:  Juanita Adams Department of
State Publication 7756 Background Notes Series  -- This material is in
the public domain and may  be reprinted without permission; citation of
this source is appreciated. For sale by the Superintendent of Documents,
US Government Printing Office, Washington, DC  20402.(###)


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