[1] His administration was characterized by the outbreak of the Cold War, with Dutra fully aligning himself with the United States and tearing up relations with the Soviet Union.
[1] Dutra took office on 31 January 1946, along with the inauguration of the National Constituent Assembly, in a climate of freedom after years of Vargas' dictatorial regime.
His presidency, which began with the prohibition of gambling in Brazil, entered its most characteristic phase in 1948, marked by the decision of the Superior Electoral Court declaring the PCB to be outside the law and later by the rupture of relations with the Soviet Union.
[3] Dutra tried to use the principles of laissez faire liberalism, suspending exchange rate controls and allowing the import of manufactured goods to avoid a rise in inflation.
[5][7] During this period, the cost of living rose by 60%, but the minimum wage remained the same as Vargas had set it in December 1943 (between 240 old cruzeiros in Recife and 380 in Rio de Janeiro).
An editorial in the newspaper A Noite stated that it was the sector that had produced the most "voluminous and fruitful" results, with the alleged construction of 500 km of roads during his administration.
[10][11] In February 1947, Dutra appointed a commission, under the direction of the CNP, to draw up the Petroleum Statute, to define how the country, whose consumption of the product was growing rapidly, would deal with the problem.
The document established the principle of the product's public utility clearly, but considered total nationalization impossible due to a lack of funds and specialized technicians.
[12] In April 1948, the Center for the Study and Defense of Oil and the National Economy (CEDPEN) was created, with Artur Bernardes and generals Horta Barbosa, José Pessoa and Estêvão Leitão de Carvalho as its honorary presidents.
[18][19] The Dutra government's foreign policy was strongly marked by the outbreak of the Cold War and anti-communism, including the rupture of diplomatic relations with the Soviet Union.