Evening star., 1942-06-10
Brazilian Iron Ore Deal Linked
To Geography and Politics
Cleaning Up Of Rio Doce Valley and Eventual
Settlement of Area Is Big Consideration

N~~oAA"1y AAASo SAAO AAAV&A A0A VA Ia 0zA
is its one-half of l per cent grad
per mile. The Victoria Minas Rail.
way skirts the rivers edge from the
sea to Governador Valadares, Q
small town 1 years old, named IL
honor Of the present Governor o.
MinaS.
That little town gives q clue tc
the Rio Doce Valley. With the mere
smell Of iron In the air, Valdares
has grown to 5000 inhabitants ex'
listing meanwhile on cattle farming
and quarrying of mica and minor
semi-precious stones, such as beryls
quartz, topazes and tourmalines.
So important do Brazilians con-
slider the geography of the region
that the company formed to mine
Itabira is called the Rio Doce
Valley Co.
|. Valley to Be Cleaned.
DR.. Israel Pinheiro, Minister OF
Agriculture of Minas Geraes and
the driving spirit behind the whole
Itabira project, said to me:
1T isn't the cash value of iron
exports that counts. Those will
amount to about $500 900 per year.
or less than our present production
of other minerals. The important
thing is that the Rio Doce Valley
will be settled, cleaned of fever, its
jungles struck and q whole fertile
province Of 10000 square miles
added to Minas Geraes."
He added that opening a natural.
easy grade into Minas Geraes along
the Rio Doce would ease by two
thirds all road and rail transport
which now buckles and snorts over
two mountain ranges between Rio
de Janeiro and Belo Horizonte, the
state capital.
In Brazilian politics the Itabira
deal comes to ease situation which,
while not acute, had been growing
steadily worse since 1887. Minas
Geraes originally supported DR..
Getulio Vargas to the presidency,
by checkmating the state of Sac
Paulo. But Minas Geraes Is con-
servative, intensely proud of what
we call states rights" and accepted
reluctantly the new state" with
its attendant highly centralized
government decreed by President
Vargas in 1887. There was no real
opposition but a kind of sullen
resentment.
Number of Exceptions.
Now, Minas is showcase OF ex-
ceptions among Brazilian states.
Its governor was elected in 1884
and remains there-as Governor
while all other Brazilian states have
a federal "interventor" responsible
only to President Vargas. In Minas
the political police keep very quiet
and out of the way for fear OF
dismemberment. There is no state
organization of the department OF
press and propaganda. the DIP
maintaining only a correspondent
for its national agency.
BY one of those priceless twists
of Brazilian humor federal officers
and enthusiastic supporters OF Pres
ident Vargas tell you of such strong
headed Minas Geraes nonconform
ism with considerable glee.
Minas Geraes' displeasure was evil
denced il. concrete terms last year
when the federal government at
tempted to market stock in the
Volta Redonda steel venture, located
in the state of Rio de Janeiro
Brazirs share in the financing was
set at $25 1000, 900. 1t is automatic
in Brazil that unless Minas Geraes
buys an issue, it will flop. The
Volta Redonda stock issue Topped.
Only $4,000 900 has been absorbed
by the public Minas didn't buy.
Minas was sore because the steel
plant Was not located in Minas.
Move to PIacate State.
Considering the importance OF
Minas, something had to be done to
placate that state. The opportunity
came last January, during the con-
ference of American foreign minis
tiers in Rio. American Undersecre-
tary of State Sumner Welles wanted
Brazil to break relations with the
Axis. Brazil wanted Itabira.
Mr.. Welles was approached deli
cately. Could he swing the British
into giving up the Itabira Iron Ore
Co. and the Victoria Minas Rail-
way? The British must do so VOL
UNFAIRLY. for Minas Geraes has a
proud and sometimes awkward way