[EVENT] [RETRO] The new men in charge

October 1969-January 1970

After being elected in October, Garcez had the task of building a viable governing arrangement before he took office on the 31st of January, 1970. Given his unwillingness to work in line with the increasingly leftist PTB, the natural option had to be the PSD, as the biggest party who could possibly support them. As such, he reached to the three men who could help him the most: ex-president Laudo Natel and unsucessful vice-presidential candidate Artur Bernardes Filho from the Partido Republicano, who since before the election were laying the groundwork so this coalition could come to fruition, and new vice-president Benedito Valadares. The PSD directory in Minas Gerais — the most powerful at the moment, even if the party's presidency stayed in Rio de Janeiro with Ernâni Amaral Peixoto —, led by Benedito and grateful for the support given by the Partido Republicano in the governatorial elections, was the first to mobilize itself in favor of the alliance, quickly joined by the “Ala Moça”, ideologically closer to the PSP. As such, despite being an opponent in the national elections, Tancredo Neves was given the Justice and Interior Ministry.

Other more conservative sections of the party and outside Minas Gerais, however, still had to be convinced, in what would become a great point of contention. They wanted Roberto Campos as a more conservative option to Finance Minister, having as a priority reducing government deficit, opening the economy and also estabilizing the value of the cruzeiro, but the president was unwilling to compromise in economic policy, and wished for a candidate aligned with state-led development. Also not too keen on Campos, Kubitschek proposed José Maria Alkmim for the post, but these same sectors of the party had a resistance to his name as a symptom of growing factionalism between the more conservative and developmentist elements, as the former feared they had let the latter gain too much power during this last year. In the end, Antônio Delfim Netto — suggested by Laudo Natel — was chosen by the president and accepted by the more developmentist sectors of the PSD, with even the conservatives being able get somewhat behind with it.

Still struggling to get support from the whole of the PSD, the president also faced the dilemma of needing to atract support from more deputies, as the PSD, PSP and PR together only had 198 out of 409 seats. The most desirable ally left was the Partido Democrata Cristão (PDC), with 14 seats, but since they were traditional opponents in São Paulo state politics, they would only support the new government if concessions were made — if Ney Braga or another member of the party were appointed Minister of Agriculture. This proposal did not bode well with the PSD, as the still unconvinced directories — dominated mainly by great rural landowners from traditional families — wanted that ministry to themselves. However considering the reasonable alignment in terms of policy between the two, they were willing to accept the deal, even if not ideal, and the position was considered filled.

The Ministry of Transport and Public Works was given to the president of the PSD, Êrnani Amaral Peixoto, so that, besides implementing the government great infraestructural projects, it could be used to tighten the party's national directory's grip on the PSD and maintain the stability of the coalition. That too, wasn't an uncontroversial move, as elected vice-president Benedito Valadares, part of the more “traditional” faction, desired the office to himself in an ambition to expand his and his allies power in the party's politics, but even if this would calm down dissatisfaction between them in the short run, Garcez feared this would instead create a more solid basis for possible dissident groups within the coalition, and having the ministry outside of Minas Gerais was considered a good thing by many state directories who were feeling left out from power, even if they'd preferred a different name.

Opposition to the new president Lucas Nogueira Garcez inside the PSD was strongest amongst those of the state directory of Rio Grande do Sul. Historically the fraction of the party most aligned with the UDN, having frequently supported their presidential candidates and voting in line with them in congress, the seven seats held by them were essential to confirm a parliamentary majority in the Chamber of Deputies. In order to calm them down and get their support then, the new president named Daniel Faraco, one of the directory's leaders and deputies as Minister of Industry and Trade.

Having secured support in both the Chamber of Deputies and the Senate, Garcez's problem now laid inside his own party. Juvenal Lino de Matos, his most proeminent internal rival and leader of the labour wing of the party, had to be accommodated somehow after losing both the party's leadership and candidacy dispute to him, as he also resented some of the alliances made by the elected president, given the external interference by Laudo Natel in the PSP's internal dealings. The Labour and Social Security Ministry, desired by Juvenal, was one of the most important in the republic and could act as a great political platform, the reason as to why both Juvenal wanted it, and Garcez was reticent on leaving it to him. The president tried to sideline his rival by picking his base of support within the party apart, wishing to fill the remaining positions in the cabinet with loyalists, but after months of negotiating with multiple figures he could not make it happen and was forced to accept the demands of a very unhappy Juvenal, at risk of him leaving the party together with his allies.

Having secured the groundwork for his government, the remaining cabinet positions were filled with technical and loyalist nominations. Now, with many concessions made to coalition partners, internal PSP dissidents, and key ministries not totally under his control, a difficult term lay ahead for the nes president Garcez, who would also have to resist being pulled apart by conflicting ideas from labour and liberal allies, with none of whom he totally agreed.

Minister Foreign Affairs (Relações Exteriores) - João Augusto de Araújo Castro (-)
Minister of Finance (Fazenda) - Delfim Netto (-)
Minister of Justice (Justiça) - Tancredo Neves (PSD)
Minister of Roads and Public Works (Viação e Obras Públicas) - Ernâni Amaral Peixoto (PSD)
Minister of Agriculture (Agricultura) - Ney Braga (PDC) Minister of Labour and Social Security (Trabalho e Previdência Social) - Juvenal Lino de Matos (PSP) Minister of Industry and Trade (Indústria e Comércio) - Daniel Agostinho Faraco (PSD) Minister of Education and Culture (Educação e Cultura) - Pedro Calmon Moniz de Bittencourt (-) Minister of Health (Saúde) - Francisco Antônio Cardoso (PSP)
Minister of Mines and Energy (Minas e Energia) - Antônio Dias Leite Júnior (-)
Minister of War (Guerra) - Odylio Denys (-)
Minister of the Navy (Marinha) - Cândido da Costa Aragão (-) Minister of Aeronautics (Aeronáutica) - Márcio de Souza e Mello (-)