Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-08-26
Brazil Cracks Down
On Reds Suspected
OF Setting Off Riots

RIO DE JANEIRO. Brazil.
Aug. 26.-Police cracked down
on the outlawed Communist
Party today after 48 hours Of
riots and demonstrations touched
off by the suicide Of President
Getulio Vargas.
Amid increasing evidence the
Reds played a strong hand in
sparkling the riots, aimed in part
against the United States, more
than 100 communists were under
arrest. One was accused spe-
officially of burning a police car.
Copies of Imprensa Popular,
the Communist newspaper which
publishes openly despite the ban
on the party. were seized by po-
lice in Rio de Janeiro. The
newspaper headlined its account
of yesterdays demonstrations:
"Down with Americans Rio
residents shout Indignantly in
streets"
A dispatch from Porto Allegro
said police raided an allegedly
Communist paper there and ar
rested the editor.
Commercial Life Normal.
This capital city's commercial
life gradually returned to normal
today. Public Offices, banks and
shops reopened. A few troops
still were to be seen on the
streets, but the heavily rein
forced patrols of the past two
days were called in.
Joao Cafe Filho, the new presi-
dent, cast about for someone to
fill the ticklish job of finance
minister in the inf1ation-p plagued
government he inherited. He con-
ferred with individual ministers
and scheduled a cabinet meeting.
After the 71-year-old Vargas
ended his life with a bullet Tues
day, his old friend Oswaldo
Aranha. former United Nations
Assembly president. resigned as
finance minister along with the
rest of the cabinet.
Mr.. Aranha, who has often
been mentioned as a candidate
in the 1866 presidential elec-
tons, had been seeking in the
past few months to steer Brazil
through a dire foreign exchange
shortage caused mainly by de-
Ginning coffee exports.
The economic straits Brazil
has been going through had
much to do with the explosive
litical-military crisis that
shook the country for the past
20 days and eliminated in Mr..
Vargas suicide following his
military dictated agreement to
take a permanent leave of
absence.
Rioters Cool Down.
The rioting crowds that took
to the streets to boot against
Mr.. Vargas, then began demon
strating for him when they
learned he had shot himself.
cooled down today after two
bloody days that left four dead
and scores of wounded through
out Brazil.
Mr.. Vargas body lay in state
in the town hall Of his native
Sac Borja in southern Brazil
prior to burial today The Ro-
man Catholic Church banned
religious funeral rites because he
took his own life but thousands
of devoted Brazilians said prau-
ers for the veteran leaders sole.
Cabinet Selections Rushed.
Despite an official decree for
eight days mourning. Mr.. Cafe
worked feverish1y on the task
of forming his new cabinet He
Is expected to select at least one
member of his own Social Prog
ress (PSP) Party, plus repre-
sentative of the large Social
Democrat Party in filling the
four cabinet posts still vacant
finance, health, education and
transport.
The President said he plans to
form an all-party cabinet. He
also is expected to name a new
president for the Bank of Brazil,
q powerful factor in carrying out
the governments financial poll
cies. In the middle of the re-
cent crisis. Mr.. Aranha took the
bold step of reviving the outflow
of coffee exports through an
edict which in effect granted ex-
ira exchange bonuses to export
erS.
Vargas Foe Named.
Mr.. Cafe already has named
most of his cabinet. It includes:
Air Minister, Gen. Eduardo
Comes, who spearheaded the air
force campaign to get Mr.. Var
gas to resign: labor, Senator
Napoleao Alencastro Guimaraes;
Justice. Miguel Seabra Fagun-
ces; military chief Of staff. Gen.
Juarez Tavora; war, Gen. Hen
rique Baptista Teixeira. and for
eign, Raul Fernandes.
MIR. Vargas Labor Party an
nounced in the Senate last night
that 1t was throwing its sup
port behind Mr.. Cafe.
A nsA