World Notes BRAZIL

When describing his radical plan to reform Brazil's out-of-control economy, President Fernando Collor de Mello used to state his goal by quoting Spanish conquistador Hernan Cortes: "To win -- or to win." But in recent months the supremely confident Collor, 41, has notched precious few victories. The inflation rate, after being cut from 80% a month to less than 10%, is back to 17%. Interest rates are sky-high; unemployment is rising. Last week Collor got more bad news. In runoff elections for 15 governorships, progovernment candidates lost in the biggest and most influential states, including Sao Paulo.

Last month the leader of Collor's party in Congress resigned, grousing that the President was behaving like "an unthroned emperor." Now Collor must establish a dialogue with Congress. That dialogue may result in wage hikes and other measures that could carry Brazil into a new round of hyperinflation.