ARE THEY WATCHING STAGECOACH or CASABLANCA IN GILLIAM"S BRAZIL?

I believe this has something to do with what version you own.

Casablanca

That’s Casablanca. If you listen to the dvd Commentary with El Maestro- Terry Gilliam he reveals it all.

Those notes on the piano you hear are just after the “play it again Sam”

Early in the film, they’re watching a Western, one that I can’t identify.

Later in the film, when Mr. Kurtzmann has figured out what they’re doing, CASABLANCA is being shown You can here Bogart tell Ingrid Bergman “Here’s looking at you kid” as Sam leaves Mr. Kurtzmann’s office to deliver the refund check to Mrs. Buttle.