CLIMAX REACHED.

Auckland Star, Volume LXVIII, Issue 269, 12 November 1937, Page 7

CLIMAX REACHED.

CRISIS IN BRAZIL

Totalitarian State Reported Established. DEBT PAYMENTS STOP. United Press Association.—Copyright. (Received 9.:J0 a.m.) NEW YORK, November 11. News from Brazil indicates the suspension of constitutional privileges and the abolition of Federal, State and municipal elective and law-making bodies and the establishment of a totalitarian State. A very strict censorship is preventing the dispatch of details. Even telephonic conversations between New York and Rio de Janeiro are rigidly supervised. It is indicated that the deepening of the economic crisis has reached a climax. The (iovernment is lifting its price-control over coffee. Official circles in the United States are extremely disturbed by the establishment of totalitarianism in the largest Latin-American country. A message from Rio de Janeiro says the Prcsid 'tit, Dr. Vargas, in a broadcast speech, said the new constitution was necessitated because political turmoil and economic strain were threatening to cause an armed revolution. He announced the suspension of payments on debts abroad. According to a London cable dealings in Brazilian bonds there were temporarily suspended after President Vargas* broadcast that payments of Brazil's external debt would temporarily cease. Other markets were cheerful as the result of better news from the (nited States. The Washington correspondent of the "New ork Times" says deep concern is felt there owing to the fear that the movement may eventually spread to other Latin-American countries. President Roosevelt has consistently discouraged the Fascistic trend of South -America because the United States fears it might lead to a conflict similar to that in Spain.

DRIFT IN POLAND?

British Correspondent Senses New Fascist State. FEAR OF ANOTHER SPAIN. LONDON'. November 11. Writing in the '"News Chronicle." Mr. \ ernon Hartlett states that although Colonel Heck. Polish Foreign Minister,, assured the British Ambassador to Warsaw that Poland was not joining tile Anti-Communist Pact, the situation in Poland is causing great anxiety, especially in Paris.

There are indications that a serious attempt may be made within a few days to establish a fully-fledged Fascist regime in Poland, with' Marshal Snugly Rydz. the popular Inspector-General of the Army, as dictator. The coup would lead to the overthrow of President Moscicki. who is hostile to totalitarian tendencies. It would almost inevitably cause a civil war similar to that in Spain.