UNCLASSIFIED A 188 TO : SECSTATE WASHINGTON, D.C. DEPARTMENT OF STATE BUREAU OF INTER-AMERICAN AFFAIRS

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1 DEPT. DISTRIBUTION DR IG IN / AC TION DEPARTMENT OF STATE RS/R / REP A F ARA EUR FE N E A CU IN R ^? FBO P AID (5 t IO oc T / HANDLING Original to be Filed in Decentralized Files. INDICATOR AJO FILE *L*A&^L#<PT~^ DESIGNATION A 188 TO : SECSTATE WASHINGTON, D.C. DEPARTMENT OF STATE BUREAU OF INTER-AMERICAN AFFAIRS OCT AGR 10 LAB (e AIR 5 USI A lo COM FRB I N I TAR ARMY 3 NSA Jl'S i SUGGESTED T R? NAVY If) CIA XM B OSD c2> DISTRIBUTION FR0M AMCONGEN RIO DE JANEIRO DATE: October 9, 1973 E N/A SUBJECT : Many Elements of Federal "Mxnlstries Remain in Rio TAGS: PGOV, BR REF : r On September 9, 1973, the Rio newspaper Jornal do Brasil carried a full-page article which outlined the pace of the centralization in Brasilia of Ministries and agencies of the Government of Brazil and focussed primarily on those elements of the Ministries presently remaining in Rio de Janeiro. Attached as an enclosure to this airgram is a summary of the listings in that article. " i The listing provides a current and presumably accurate indication of the relatively limited impact of the move of the Government to Brasilia on the State of Guanabara. It also appears to be critical of the efficiency of the present governmental arrangements Action Taken: In a brief introductory comment the article carries a sharp thrust against the extent to which the centralization of the government has been carried out in Brasilia. The comment alleges that the nuclei of the Ministries in Brasilia "were not operating successfully" since the major part of the informational elements were s t i l l in Rio. "The solution is to decentralize decision-making" rather than to accelerate new transfers to Brasilia, according to the commentary. Reporters preparing the listings noted that "according to Date: Initials: Drat,ed D b p : 0:William FfiR B/^iller:mz For Department Use Only Drafting Dpte: 10/9/73 Phone No.: Contents and Classification Approved by: CG: CABOONS.TRA Clearances: 1*1)0 0 «U. S. GOVERNMENT PRINTING OFFICE : 1966 O (258)

2 A-188 Page 2 AmConGen Rio technicians", certain major organizations, including Petrobras, the Nuclear Energy Commission, and the National Housing Bank, could "never" be moved to Brasilia "without running the risk of great chaos in the Government". Carried as a supplementary comment was an analysis of the current administrative situation by Sr. Helio Beltrao a former Minister of Planning. Sr. Beltrao appears to believe that the pace of centralization has been far greater than was the original intent of the Castello e Branco Government in which he served. He was described as saying that the Administrative Reform Law of 1967 was designed to "discipline" the trend toward governmental centralization; the idea was "to restrict to the Federal Capital the brain of the administration and not to move there its arms and legs." There is in the article no indication of the number of federal employees s t i l l in Rio but i t is probably substantial. For example, the Ministry of Justice reportedly has moved only 40% of its employees into Brasilia. Other agencies, such as the Housing Bank (BNH), reported as eventually planning a move to Brasilia, s t i l l seems firmly located in Rio. One aspect is certain, however: virtually all policy decisions for the national government are made in Brasilia, and this trend is unlikely to be reversed. BOONSTRA Enclosure a/s

3 Enc 1 - Page 1 A-188 ELEMENTS OF FEDERAL MINISTRIES AND AGENCIES. LOCATED IN RIO DE JANEIRO SEPTEMBER, ' Ministry of Foreign Relations Division of Demarcation of Frontiers (Divis'efo de Demarcaclao de Fronteiras) Historical Archives (Arquivo Historico) The Rio Branco Institute (Instiluto Rio Branco) (These three are eventually to be transferred to Brasilia, date as yet not determined) Part of the Library Part of the Map Library Personnel Unit of the Rio Office Economic and Commercial Unit of the Rio Office Part of the Protocol Office Historical and Diplomatic Museum Head of Rio Office is Minister Arthur Gouvea Portella The staff, including the Minister, consists of three diplomats as heads of the Passport and Personnel, Protocol, and Economic Offices, and more than 100 employees. Ministry of Health National Division of Medical Skills (Divisao Nacional de Pericias Medicas). National Commission of Hemotherapy (Cornissao Nacional de Hermoterapia) National Division of Sanitary Organization (Divisao Nacional de Organizacao Sanitaria) Coordinating Office of Maternal-Child Protection (Coordenacao de Protecao Materno-Infantil) Coordinating Office of Medical-Hospital Assistance (Coordenacao de Assistencia Medico-Hospitalar) National Department of Preventive Medicine and Sickness Control (DepaiftaiHento Nacional de Profilaxia e Controle das Doencas) Division of Sanitary Engineering (Divisao de Engenharia Sanitaria) 1/ Source: 0 Jornal do Brasil, September 9, 1973 Authority DECLASSIFIED

4 Enc 1 - Page 2 A-188 National Division of Epidemiology and Health Statistics (Divisao Nacional de Epidemiologia and Estatistica de Saude) National Division of Sanitary Education (Divisao Nacional de Educagao Sanitaria) Part of Bureau of Public Health Campaign (Superintendencia de Campanhas Medicas) These are scheduled to be moved by the end of Remaining in Rio will be other organizations such aa the following: National Institute of Cancer (Instituto Nacional de Cancer) Oswaldo Cruz Foundation (Fundacao Osvaldo Cruz) Laboratory for the Control of Medicines (Laboratorio de Controle dos Medicamentos) Ministry of Communications Brazilian Posts and Telegraphs (Empresa Brasileira de Correios e Telegrafos - ECT) Brazilian Telecommunications (Empresa Brasileira de Telecomunicacoes - EMBRATEL) The Presidency of ECT will be in Brasilia soon after the beginning of next year, EMBRATEL will also be moving its main offices, with a date as yet unfixed. National Department of Telecommunications (Departamento Nacional de Telecomunicacoes - DENTEL) National Telecommunications Council (Conselho Nacional de Telecomunicacoes- CONTEL) These two organizations maintain only offices in Rio. representative Ministry of the Army Only a "Mini-Secretariat" is now being maintained in Rio. A few elements of the major departments of the Ministry are s t i l l here but they are in the process of being moved.

5 1 - Page 3 A 188 Ministry of the Navy Apart from branches of the elements presently in Brasilia, there are in Rio the following: Fleet Command (Comando da Esquadra) Directorate of Naval Communications and Electronics (Diretoria da Comunicacbes e Eletronica da Marinha - eventually to be moved to Brasilia) Directorate of Administration (Diretoria de Intende*ncia) Navy Arsenal (Arsenal de Marinha) Ministry of Air General Air Command (Comando Geral do Ar), including Tactical Command (Comando Geral Tatico) and Aeronautical Technical Center (Centro Te'cnico de Aeronautica) Command General Personnel/ (Comando Geral de Pessoal), including the Directorate of Training (Diretoria de Formacao e Aperfeipoamento), Directorate of Personnel Administration (Diretoria de Administracao de Pessoal), Directorate of Health (Diretoria de Saude), and Directorate of Administration (Diretoria de Intendencia). General Support Command (Comando Geral de Apoio) including Directorate of Flight Safety and Air Traffic Control (Diretoria de Protecao ao Voo), Chief of Military Support Command (Comando de Apoio Militar),/Staff for Infrastructure Engineering (Comando de Infra-Estrutura), and Department of Civil Aviation (Departamento de Aviaryao Civil). Ministry of Justice Only 40% of the Ministry's personnel are in Brasilia. Most of the heads of Departments are in Brasilia, but a Ministerial Secretariat organization is maintained in Rio. Only the Department of Justice remains in total in Rio. In addition to branches of the Departments transferred to Brasilia, the following consultative organs remain in Rio :

6 Enc 1 - Page 4 Arl88 General Commission of Investigations (Cornissao Geral de Investigacoes) Commission for Legislative Studies (Cornissao de Estudos Legislativos) National Foundation for Child Welfare (Fundacao Nacional para o Bem-Estar do Menor-FUNABEM) Autonomous operating agencies, such as the Federal Police (Policia Federal), National Traffic Council (Conselho Nacional de Transito - CONTRAN) the Administrative Council for Economic Defense (Conselho Administrativo da Defesa Economica) and the Service of Moral and Civil Population Statistics (Servigo de Estatistica Demografica Moral e Civica) National Archives (Arquivo Nacional) National Press (Imprensa Nacional) -- about two-thirds of the personnel are s t i l l in Rio, the rest being in Brasilia. Ministry of Planning The Minister himself is s t i l l headquartered here, as well as all the organs related to the Ministry, such as the National Development Bank (Banco Nacional de Desenvolvimiento- BNDE), the Institute of Applied Economic Research (Instituto de Pesquisa Economica Aplicada - IPEA), the Brazilian Geographic and Statistical Institute (Instituto Brasileiro de Geografia e Estatistica - IBGE), and the Project Financing Agency (Financiadora de Projetoe-FINEP). Ministry of Finance Major decisions are all taken in Brasilia, but meetings with businessmen and authorities are almost always in Rio. Although Brasilia is officially the location of the following, most activities are carried out in Rio: Secretariat of Federal Revenues (Secretaria da Receita Federal Interministerial Price Council (Conselho Interministerial de Pregos - CIP

7 Enc 1 - Page 5 A 188 Council of Tariff Policy (Conselho de Politica Aduaneira - CPA) Ministry of Transport At the beginning of next year the Minister's Secretariat will move to Brasilia, as will the dependencies directly associated with i t. In Rio at present are the following: National Highways Department (Departamento Nacional de Estradas de Rodagem - DNER). Eventually, the DNER will be transferred entirely to Brasilia; housing for its 20,000 employees is currently the major problem. National Railways Department (Departamento Na clonal de Estradas de Ferro - DNEF) National Department of Ports and Navigable Waterways (Departamento Nacional de Portos e Vias Navegaveis - DNPVN) National Supertindent of Merchant Marine (Superintende'ncia de Marinha Merc ante - SUNAMAM) Federal Railway System (R de Ferroviaria Federal - RFFSA) Of the foregoing only the Railway System Headquarters remain permanently here. will Ministry of Interior Though the central nucleus of the Ministry is in Brasilia, the complexity of many housing agencies such as the National Housing Bank (Banco Nacional de Habitacao- BNH) and the National Indian Foundation (Fundacao Nacional do Indio) has required the maintenance of an Assistant Secretary General and an Administrative Support Unit in Rio. Apparently the BNH is looking toward an eventual move to Brasilia. Ministry of Industry and Commerce Only representative offices of the Ministry are being maintained in Rio, and this illustrates the general pattern to be expected. At present the following are illustrative of the offices being maintained in Rio: Authority DECLASSIFIED

8 Enc 1 - Page 6 A 188 National Institute of Industrial Property (Instituto Nacional da Propriedade Industrial) Council of Industrial Development (Conselho de Desenvolvimento Industrial) Council of the Steel Industry (Conselho da Industria Siderurgica) National Department for the Registration of Commerce (Departamento Nacional de Registro de Comercio) Ministry of Labor & Social Welfare National Social Security Institute(Instituto Nacional de Previdencia Social - INPS) National Wage Department (Departamento Nacional de Salario) National Department of Labor (Departamento Nacional de Macj-de-Obra) National Department of Documentation and Information (Departamento de Documentac'^o e Informatica) Secretary General of Labor (Secretaria-Geral do Trabalho) Ministry of Mines and Energy National Department of Mineral Production (Departamento Nacional da Producao Mineral) National Department of Water and Electric Energy (Departamento Nacional de Aguas e Energia Eletrica) Administratively autonomous agencies, as following: Petroleo Brasileiro S.A. (PETROBRAS) Vale do Rio Doce (Ore Extraction) Company of Minerals Resources (Companhia de Recursos Minerals-CPRM) Branches of: ELETROBRAS Brasilian Company of Nuclear Technology (Companhia Brasileira de Tecnologia Nuclear) National Nuclear Energy Commission (Cornissao Nacional de Energia Nuclear) Authority DECLASSIFIED

9 Eric 1 - Page 7 A 188 Ministry of Education Fourteen Departments of the Ministry remain in the central offices of the Ministry, and 29 additional organs are functioning here but are located physically apart from the Ministry. Federal Cultural Council (Conselho Federal da Cultura) National Book Institute (Instituto Nacional do Livro) College of Pedro I I (Colegio Pedro II) National Institute for the Deaf (Instituto Nacional de Educacao de Surdos) Federal Technical School (Escola Tecnica Federal Celso Suckow da Fonseca) National Library (Biblioteca Nacional) Rui Barbosa Foundation (Fundacao Casa de Rui Barbosa) Ministry of Education Radio (Radio Ministerio da Edueacao- Radio- MEC) Ministry of Argriculture Brazilian Institute of Forest Development (Instituto Brasileiro de Densenvolvimento Florestal - IBDF) Superintendency for Fishing Development (Superinteridencia do Desenvolvimento da Pesca - SUDEPE) Directorate of the Ministry of Agriculture for Guanabara (Diretoria Estadual do Ministerio da Agricultura - DEMA) "DECLASSIFIED Authority ^Dj^Oil

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