The Pasmado Tunnel connects Botafogo with Copacabana and Urca, passing through Pasmado hill. Construction started in 1947 and ended in 1952. The city, at the time, had horrible transit problems due to a surge in car ownership, which resulted in traffic congestion and accidents. The Lacerda government decided to relieve some of the pressure by making the tunnel. What ended up shortening travel time for those with enough money also meant increasing travel time for those with no money.
Following the opening of the tunnel, a small slum on top of the hill, known as the Favela do Pasmado, began to really grow in size, but by early 1964 it was removed and the space would be turned into a park and lookout point (which still exists).
Once the forced removal was complete (see images below), firefighters lit a controlled fire to burn any semblance of what existed before (a “purification by fire”, if you will). In total, 3,900 residents – or 887 families – were forced out and moved to the “projects”, mostly to Bangu. What was promised to them by the government, as incentive to accept the move, hadn’t become reality in October of ’64, as can be seen in this image saying they merely went from one favela to another.
Keep in mind, the post-removal fire is the opposite of what happened a few years later at Praia do Pinto in Leblon, which first was burned to the ground, then the residents were removed.
If you’re interested in a good academic read on this favela removal, go here (PT). For the general wave of removals that happened in the 60s, there’s a promising 2013 documentary called Remoção out there but it doesn’t seem like it’ll be released publicly at any point. Below is the trailer.
The Pasmado tunnel, by the way, is also famous for a 1968 film starring singer Roberto Carlos, in which he passes through in a small helicopter.