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World - Americas

Brazil's President Cardoso appoints new Cabinet

graphic December 23, 1998
Web posted at: 12:53 p.m. EDT (1653 GMT)

BRASILIA, Brazil (CNN) -- President Fernando Henrique Cardoso announced a new Cabinet for his second term Wednesday, retaining many of his current ministers and warning new members that they face dismissal if they fail to support his economic-reform program.

"If they don't vote, that means they are not supporting the government. If they don't support the government, then they can't be in the government," the president told a news conference.

Cardoso called on the political parties represented in his Cabinet to back outstanding measures in his austerity plan in Congress, seen as crucial to Brazil's chances of avoiding an Asian-style financial collapse.

The Brazilian government aims to raise or save $23.5 billion next year so it can qualify for a $41 billion package of international loans put together by the International Monetary Fund.

The package includes contributions from 20 countries and seeks to save Latin America's largest economy from an economic crisis that would worsen global financial turmoil.

Cardoso said he would resend to Congress a decree increasing pension contributions for civil servants. It was rejected this month, a setback for the government.

Among the new Cabinet faces are Joao Pimenta de Veiga, a long-standing Cardoso ally, who will be the communications minister, and Rodolfo Tourinho, linked to powerful Congress boss Sen. Antonio Carlos Magalhaes, who will be the mines and energy minister.

Cardoso announced Tuesday that Brazil's envoy to the World Trade Organization, Celso Lafer, will become the country's first development minister, a powerful new post designed to boost the competitiveness of Brazilian industries.

Reuters contributed to this report.

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