(Sanitized) RIO DE JANEIRO (BRAZIL) APRIL 2ND, 1953

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00423R000300330002-0
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: February 8, 1999
• Sequence Number: 2
• Content Type: REPORT

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Approve h eleas 11999/09/10 : CIA-RDP83-00423R000300330002-0
RIO DEFJANEIi O RA; IL APRIL 2ND? 1953
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ECONOMIC CONDITIONS:
ica, in its
Transport and Communications: Conjuntura Econ?m
January issue, calls attention to the evolution that is taking place in
the motor vehicles industry in Brazil. The National Motor Factory, for
instance, which already makes bodies, cabins, tyres, cushions, batteries
and other parts for motor lorries is expected this year to be adding
wheels and springs, it being reckoned that 46% of the cost of each
vehicle will then be of national manufacture. In 1954 it Is intended
to make front and back axles and headlamps, bringing the national pro-
portion up to 75%, and to be able to raise this to 100% by 1955 when
the engine will be included. During the current year, in conjunction
with Alfa Romeo, the National Motor Factory is scheduled to build 1,000
8-ton lorries and 1,500 tractors.
According to the same source, there are 6 motor car assembly
plants in operation in the country, notably General Motors and Ford, while
no fewer than 350 factories are engaged in the production of spare parts
and accessories of all kinds.
With regard to tyres and inner tubes, it is noted that this
branch of the industry progressed though not at the rate expected. Estimated
rubber consumption for 1952 was set at 41,600 tons (including 6,500 tons
for light industry), but the increase was little more than 10% over 1951,
due principally to a drop of 25% in motor car imports, while the production
of tyres and inner tubes for bicycles decreased by 47% on account of accu-
mulated stocks.
Rio Port Strike: In an attempt to solve the month-long partial
strike of Rio stevedores, the Government announced that enlisted men from
the Brazilian Navy and workers from the Central Railroad would be sent to
the wharves to unload cargo. However, due to the lack of skilled dock-
workers among this group, the plan has not been particularly successful,
and the nixnber of ships waiting for docking space continues to mount. In
retaliation against this Government measure to break the port deadlock,
spokesmen for the striking stevedores announced the strike would be extended
to include passenger ships docking after 4:00 P.M. Up to this time, the
workers only refused to unload cargo ships.
Findings of the-Txtile Convention: Representatives of sixteen
textile syndicates from all over the country met in Rio de Janeiro last
week to discuss, primarily, the alarming drop in textile exports and to
put forward suggestions for assisting Brazil's most important industry.
At the close of the Convention, a Memorial was approved for presentation
to the President of the Republic, proposing among other things the adoption
of the following measures: (1) 80% of exchange from exports to be sold in
the free market; (2) exchange to be made available at the official rate for
the importation of accessories and spare parts for machinery not made in
Brazil; (3) more rapid granting of licenses for goods essential for keeping
the industry going; (4) official rate exchange for machinery replacements
and for machinery intended to improve production; (5) priority for the
importation of raw materials not produced in Brazil. The Memorial alleges
that Brazil is now in a position to export between 200,000,000 and 250,000,000
metres of cotton piecegoods and 10,000,000 kilos of cotton yarns (presumably
per annum), representing some Cr$3,000,OO0,00O, and points out that about a
quarter of these quantities are in stock at the factories and could be made
available immediately.
Approved For Release 1999/09/10 : CIA-RDP83-00423R000300330002-0
 BRAZIL) APRI
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Development Commission Stp.dies New Proposals: At its last
meeting, the Industrial Development Commission studied the following
proposals for the installation of new industries in Brazil: (1) from
the Paillard factory of Berne, Switzerland for the possibility of manu
facturing Hermes typewriters here; (2) from the Swedish firm Aktiebolaget
Olof Myberg to construct a factory for the production of lamp sockets;
(3) from the Italian firm Emilians Litometallica Incisione Targhe for a
lithography industry; (4) from Cassio Muniz, S.A., requesting exemption
from eu stoms duties and financing of Cr$10,000,000 to produce kerosene
burning refrigerators; (5) from Adalberto Fazzini of Sao Paulo for the
installation of a factory to manufacture small electric motors; (6) from
Ferdinand Karef of Salzburg, Austria, for the installation of a factory
to convert steam locomotives to the use of Diesel oil; and (7) .from.,the
J. Quirad Co., of France, regarding the industrialization of babassu.
Argentine-Brazil Trade. Treaty Signed: After months of nego-
tiations, the Brazil-Argentine trade treaty was signed In Buenos Aires.
During the first year, the exchange between the two countries will amount
to Cr$5,500,000,000--Argentina will export products to Brazil valued at
Cr$30000,000,000, and Brazil will export Cr$2,500,000,000 to Argentina.
Argentina will sell Brazil 1,500,000 tons of wheat at US$112.00 per ton,
which will represent about 80% of all Argentine exports to Brazil. This
country's exports to Argentina will consist of timber (40%), cocoa (8i),
coffee (30%), iron and steel (6%), machinery and manufactured products
(16%). An additional agreement was negotiated for an exchange of
US$28,000,000 in fruit--8,500,000 stems of Brazilian bananas annually
in exchange for Argentine apples, pears and grapes. The trade treaty
will be in effect four years.
roducerstoCollabrate onIort_Policies: In response to
the voluble complaints made by industrial and commercial circles that they
had no voice in the Government's import policies, although they were the
ones most affected by it, President Vargas has approved suggestions
submitted by Finance Minister Horacio Lafer for the creation of consult-
ing committees. Lafer is advocating the formation of two commissions,
one composed of the presidents of the Federations of Industry from the
State of Sao Paulo, the Federal District, and the States of Rio Grande
do Sul and Pernambuco; and the other, of representatives from Rural
Societies all over Brazil. The purpose of these commissions will be to
collaborate with the Export-Import Department of the Bank of Brazil in
formulating Brazil's import policies.
Approved For Release 1999/09/10 : CIA-RDP83-00423R000300330002-0
(New York, April 6th, 1953-AC)