A BRIEF HISTORY OF BRAZILIAN POLITICAL DEVELOPMENT FROM THE FIRST REPUBLIC OF 1889 TO THE 1964 ARMY COUP IN RESPONSE TO COMMUNIST ACTIVITY IN THE GOVERNMENT IS PROVIDED. THE EMERGENCE OF A POLICE STATE UNDER THE ARMY'S POWER, SETTING THE CONDITIONS FOR TERRORIST VIOLENCE, ARE THEN DISCUSSED. THE FIRST VICTIMS OF ORGANISED URBAN GUERRILLA WARFARE, BRAZILIANS WERE CAUGHT UNAWARES BY THE TERRORIST OUTBREAK OF 1969-72 AT A TIME WHEN THE COUNTRY WAS IN THE FIRST STAGES OF AN UNPRECEDENTED CYCLE OF ECONOMIC GROWTH. FACED WITH KIDNAPPINGS, BANK RAIDS, ASSASSINATIONS AND ATTEMPTS TO SPREAD THE VIOLENCE INTO A NATIONAL UPHEAVAL, THE GOVERNMENT REACTED VIGOROUSLY, AND BY THE END OF 1972 THE WAR AGAINST TERRORISM WAS VIRTUALLY OVER. THIS VIOLENT INTERLUDE HAD INTERRUPTED PRELIMINARY MOVES TO DEMOCRATISE THE MILITARY REGIME THAT TOOK OVER IN 1964 TO AVERT A THREATENED LEFT-WING DICTATORSHIP. THE AUTHOR STATES THAT NOW, WITH THE ELECTION OF A NEW PRESIDENT IN MARCH 1974, BRAZILIANS ARE HOPING FOR THE RESTORATION OF CIVIL RULE AND DIRECT PRESIDENTIAL ELECTIONS AT THE END OF PRESIDENT ERNESTO GEISEL'S TERM OF OFFICE IN 1978, BUT ANY SUCH MOVES WILL BE CAUTIOUS AND GRADUAL. WHILE LAW AND ORDER HAVE BEEN RESTORED AND THE PRESIDENT HAS PRESIDED OVER THE NOMINATION OF CIVILIAN CANDIDATES FOR THE GUBERNATORIAL ELECTIONS NEXT NOVEMBER, MOST BRAZILIANS ARE SEEN TO BE INTENT ON CONTINUING THE REMARKABLE ECONOMIC PROGRESS ACHIEVED SO FAR, AND HESITANT ABOUT CHANGING GOVERNMENTS AT THIS TIME. (AUTHOR ABSTRACT MODIFIED)