Bleeding the Brazilian Economy

Plans for a military coup were initiated shortly after João Goulart became President in August 1961. The military were wary of his populist rhetoric and appeal, and angered by his efforts to raise minimum wages of civilian laborers. Concerns of the US business community were enhanced when the Chamber of Deputies passed a bill placing conditions on foreign investment and limiting remittance of profits on the grounds that they were "bleeding the Brazilian economy." Though Goulart, a faithful member of the Brazilian elite, was anti-Communist, US labor leaders and Embassy officials were alarmed at his involvement with labor and peasant organizations and appointment of Brazilian Communists to staff positions; "an openly Communist course," the CIA warned. The appropriate Cold War context had been spelled out by JFK, shortly before assuming office (see p. 73).

Year 501