World Notes BRAZIL

Sunnily dubbed the "summer plan," the economic controls announced by the government of President Jose Sarney last week received a decidedly chilly reception. Designed to slash the country's 1,580% inflation rate and to attack the $66 billion national debt, the plan will freeze prices, abolish automatic wage hikes and devalue the Brazilian cruzado by 16.4% in relation to the dollar. The government will close six out of 27 ministries, and promises to fire 60,000 employees. Brazil is temporarily suspending any further debt-for- equity swaps with foreign banks and refuses to rule out a new moratorium on payments toward its $115 billion foreign debt.

The controls must still be approved by the Brazilian Congress. Meanwhile, Brazil is seeking a "bridge loan" from the U.S. for $3.5 billion.

Though a survey showed grudging support for the measures, Sarney obviously hopes the summer plan will yield fruit before November's presidential elections.