THE CHILEAN COMMUNIST PARTY AND ITS ALLIES: INTENTIONS, CAPABILITIES, AND PROSPECTS

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CIA-RDP04T00794R000100150001-2
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34
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May 27, 2011
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1
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May 1, 1986
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REPORT
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ll Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Intelligence and Its Allies: Intentions, Capabilities, and Prospects The Chilean Communist Party A Research Paper ALA 86-10024 May 1986 Copy 18 3 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 ~U -. 1. . Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Directorate of Operations. Office of African and Latin American Anal sis, with a biographic contribution by Office of Central Reference. It was coordinated with the Directorate of Secret Intelligence and Its Allies: Intentions, Capabilities, and Prospects The Chilean Communist Party A Research Paper This paper was prepared by Comments and queries are welcome and may be directed to the Chief, South American Division, ALA, Secret ALA 86-10024 May 1986 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 II I I .1 1 I i I I.I I I , I I III I Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 .II Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 The Chilean Communist Party and Its Allies: Intentions, Capabilities, and Prospects Key Judgments Terrorism and violent demonstrations by the revolutionary left threaten to Information available undermine the US goal of encouraging an orderly transition to democracy as of 1 April 1986 in Chile. We believe that President Pinochet will continue to use the far was used in this report. left's campaign of violence to try to maintain military support for delays in political liberalization and harsh policies ostensibly aimed at rooting out subversion. Many informed observers suspect that he wants to remain in power after his term expires in 1989, and the 25X1 Communists and their domestic allies believe that this intransigence is fueling political polarization, which they see as benefiting their long-term strategy of armed struggle. The most serious threat to US interests would occur if, after several years, the revolutionary left achieves its ultimate goal of fomenting an all-out insurgency in Chile, as this could lead to civil war or insurrection in which the Communist-dominated left might gain power. The Communist Party of Chile (PCCh) is the largest, most cohesive, and influential far-left group in Chile. Despite regime repression, the PCCh has grown steadily in recent years and currently has about 50,000 active members, including its youth wing. While many of its top leaders are in exile-its aging Secretary General lives in Moscow-the party closely follows their directives and has not experienced serious internal dissension. Closely allied with the PCCh is the terrorist Manuel Rodriguez Patriotic Front (FPMR), which, since its creation in late 1983, has carried out a steadily ascending wave of bombings and other violent actions. We estimate it currently has about 1,000 activists. Another group, the Movement of the Revolutionary Left (MIR), a pro-Castro organization, suffered sharp losses in clashes with the security services in late 1983 but is reportedly rebuilding with the aid of Cuba, Libya, and Nicaragua, and probably now has about 400 to 500 militants in Chile We believe that the PCCh and the FPMR have the capability and the will to increase significantly the pace and sco a of their campaign of violence over the next few years. Already, Chile 25X1 leads the world in number of terrorist incidents-although to date there have been relatively few casualties. We expect more frequent and lethal terrorist incidents during 1986 and 1987, involving attacks on military personnel, installations, and government buildings, as well as stepped-up Secret ALA 86-10024 May 1986 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 11 I II I III 1 1 L i u Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 bombings against civilian targets. Attacks on US companies and US- related facilities robably will rise only moderately, since the Communists do not view these installations as primary targets. The MIR probably will attempt several sensational terrorist actions against senior officials and possibly against US Embassy officers or facilities during the coming months. We believe that the Communists are convinced that their expanded armed actions will promote political instability and undermine public confidence in the government to the point that the PCCh will become widely perceived as the Pinochet regime's most effective opponent. the Communists also want to foment numerous protests and widespread civil disobedience throughout 1986 to prepare the way for a national strike. They probably calculate that these activities will enhance their standing with the moderate opposition, frustrated by Pinochet's intransigence over a transition to democracy, and with a general public that appears increasingly disenchanted over the debilitating effects on living standards caused by slow economic growth. We agree with the US Embassy's prediction that 1986 will almost certainly be a year of confrontation between the political opposition and the regime and that the Communists will play a leading role in these activities and spark consider- able violence. In the past few years, the Soviet Union, Cuba, and radical states such as Libya have provided greater levels of material support, guidance, arms, and training to the Chilean revolutionary left. this increased support derives from Moscow's and Havana's calcula- tions that conditions are ripe in Chile for a sustained effort by the left to forcibly oust Pinochet from power, although both capitals evidently expect this to happen only after several years of "armed struggle." several West European countries and South American democracies such as Argentina are favorably disposed toward anti- Pinochet groups in general and are tolerating activities within their borders by the Chilean far left. In our opinion, the security services' ability to curb terrorism and control antiregime protests will be a key factor affecting near-term prospects for the revolutionary left. While US Embassy reporting 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 -- Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret demonstrates that the services effectively have prevented large-scale violent protests and patrolled upper-class neighborhoods, they recently have had great difficulty curbing slum violence and have failed to deter the rising wave of terrorist bombings. We also believe that the security services have poor intelligence on the main revolutionary leftist groups, especially the PCCh and the FPMR. As a result, we doubt that the security services will be able to prevent far- left groups from continuing their sustained campaign of violence over the next two years. Moreover, we believe that their resources will be strained to the limit if, in the meantime, the moderate opposition parties also stage fre- quent civil disobedience actions and mass protests. On balance, however, we do not believe the Communists and their allies will undermine the Pinochet regime during 1986, and are convinced that the security services would quickly defeat the far left in any direct military engagements. Nevertheless, a substantial threat to political stability in Chile could develop over the medium to long term if the transition to civilian rule remains stalled and the far left continues to lay the foundations for an all- out insurgency. Under these circumstances, we think that Pinochet's chances for remaining in power would become shaky and that a period of full-scale armed confrontation between the far left and the security forces would become increasingly likely. ? Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret Contents Key Judgments Party Leadership Background Wooing the Moderates Communist Strategy Preparing for Insurgency 8 Manuel Rodriguez Patriotic Front 9 Movement of the Revolutionary Left 11 Cuban and Nicaraguan Guidance 14 Western Europe and South America The Most Likely Case Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 II I I 11 i I I Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret Isla San Felix Isla San (Chile) Arnbrosm (Chile) Archipielago Juan FernAndez (Chile) South Pacific Ocean Mendoza ,SANTIA * Conce1ci6n J - Beagle Channel Falkland Islands g (Islas Malvinas) (administered by U.K., chimed by Argentina) South Atlantic Ocean Boundary representation is not necessarily authoritative. Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 --- . II -I- - Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 The Chilean Communist Party and Its Allies: Intentions, Capabilities, and Prospects age and exploit. Introduction Chile today appears to be in the throes of what for US policymakers has by now become an all too familiar drama: an authoritarian but basically pro-Western regime seeking to hold at bay pressures for a return to democracy while facing a challenge from the radi- cal-and increasingly violent-left. Moderate Chil- ean opposition parties are struggling to maintain a fragile unity, rightist groups are distancing themselves from President Augusto Pinochet, and economic stag- nation threatens to undermine support from key mid- dle-class and business sectors-all against a backdrop of escalating violence fomented by the country's radical left. Informed observers predict that Chile will soon experience accelerating political polarization, growing social ferment, and widening international isolation-trends that the left stands ready to encour- The paper focuses on the Chilean far left-mainly the Communist Party and its terrorist allies-the group that may hold the key to the way events play out in the country and how US interests are affected. It examines the leadership and organization of the Com- munist Party, its recent activities and goals, its rela- tions with other radical leftist groups, and its sources of foreign support. It also assesses the ability of the Chilean security services to combat the activities of the revolutionary left and the circumstances under which these activities might threaten Pinochet's power in the near or medium term. Finally, the paper analyzes the implications for the United States of escalating leftist-sponsored violence, even if it does not immediately threaten the stability of Pinochet's regime. "Pinochet: Fit for a Long Bout? " South, the Third World Magazine increasingly violent monthly mass protests which, according to the US Embassy sources, caused senior military officers to press Pino- chet to moderate his hardline policies. The President made a few cosmetic concessions that temporarily defused the crisis, but, when it became clear in 1984 that he would not accelerate the transition to civilian rule, the opposition once again organized protests that Background President Pinochet confronted the first major chal- lenge of his decadelong rule in 1983. Declining living standards generated widespread popular discontent, which political parties and organized labor exploited to press for economic revitalization and a speedy return to democracy. These groups staged a series of have continued to this day. -;, Declassified in Part -Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04TOO794ROO01 00150001-2 1 i I I1 I Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 The Role of Far Leftist Parties Prior to 1980 Numerous studies portray the Communists as the prime movers behind the creation of the Popular Unity coalition, which elected Socialist Salvador Allende to the presidency in 1970 with a narrow plurality of the vote. The Communist Party of Chile (PCCh) was the best-organized entity in the coalition and during the Allende period increased its member- ship from 90,000 to 120,000, according to assess- ments by the US Department of State. It placed party leaders in key ministries, dominated the largest labor organization, and expanded its congressional repre- sentation. Nevertheless, the Communists lagged the Socialists in voter appeal, essentially because of President Allende's popularity The Socialists, however, were plagued by factionalism that offset their showing at the polls and undermined their efforts to build support among labor and other key sectors. The Castroite, violence- prone Movement of the Revolutionary Left (MIR) supported the government but was not in the coali- tion. It did not develop mass support and probably had no more than a few thousand members in 1973. Regime Crackdown. One of the principal objectives of the military leaders who ousted Allende in Septem- ber 1973 was to eradicate Marxism from the Chilean political scene. The new junta "recessed" all political parties and banned and vigorously repressed all Marxist groups. Because the Socialists lacked a Radical leftist parties capitalized on the turbulent political climate to emerge from clandestinity and regain some of their former influence. The Commu- nist Party of Chile (PCCh) was especially active, moving rapidly to help organize the monthly protests and to seek a formal accord with moderate parties for a broad opposition front, according to the US Embas- sy. The PCCh's refusal to renounce violence, however, spurred the moderates to form the Democratic Alli- ance (AD) coalition, a broad opposition grouping dominated by the Christian Democrats and stretching from the moderate right to the center left. The disciplined structure and had almost no underground apparatus, they suffered more than the PCCh and MIR and effectively ceased to function as a party. Communist leaders concentrated on keeping the PCCh's clandestine structure intact, although the party's headquarters was burned, its records de- stroyed, its media outlets closed, and its labor arm dissolved. Some PCCh leaders were killed right after the coup and many more were detained or exiled. The PCCh acknowledged publicly that as the result of the regime's crackdown party membership shrank to about 10,000 to 25,000 active members and sympa- thizers in the mid-1970s. Meanwhile, several thou- sand party members living abroad, along with most of the top leadership, carried out a variety of support functions, including propaganda activities and fund- raising, according to reporting from several US em- bassies. The military high command was especially eager to destroy the MIR believing that its clandestine terrorist apparatus posed a direct threat to the new regime. Many of the Movement's top leaders were killed in armed clashes with the security forces, which also broke up the training centers and potential guerrilla bases the MIR established during the Allende years. Within several months of the coup, the MIR was reduced to only a few hundred militants in scattered terrorist units. Some of its leaders and members escaped into Communists then created the rival Popular Demo- cratic Movement (MDP), which encompassed most radical leftist parties-including the hardline Al- meyda Socialist faction, the MIR, and several small violence-prone groups-and reconfirmed the PCCh's commitment to armed struggle, according to press reports 25X1 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 exile, most settling in Cuba. these elements, with the aid of the Castro government, operated a support network involving training, some arms shipments, and modest financial aid for MIR groups stillfunctionin in Chile throughout the 1970s.~ basically inactive within Chile, according to academ- ic studies. Meanwhile, the moderate Christian Demo- crats turned down all PCCh overtures and sought to avoid any taint of association with the Communists, The MIR continued to conduct sporadic violence, staging several spectac- 25X1 25X1 25X1 25X1 25X1 The Left's Staying Power. Despite the regime's crack- down, the far left demonstrated considerable resilien- cy throughout the 1970s. This was especially true of the PCCh, which by the end of the decade appeared to be revitalizing its internal organization. of PCCh figures returned from abroad while recruit- ment drives bolstered the party's ranks, according to press and academic studies. From 1973 to 1980, the Communists repeatedly condemned those who favored violence as the only way to overthrow the regime, often clashing publicly with the MIR on this issue. The PCCh's insistence on peaceful methods and ostensible support for a demo- cratic system produced few concrete gains, however, The Socialists remained hopelessly divided and were In late 1983, the PCCh reportedly supported the creation of a new terrorist group, the Manuel Rodri- guez Patriotic Front (FPMR), which was primarily responsible for the sharp escalation in violence during 1984. Pinochet imposed a state of siege in November of that year, pleasing Communist leaders in exile who hoped that he would continue to "overreact" by cracking down indiscriminately against his opponents, thereby strengthening the PCCh's prospects for being accept- ed in a broad opposition front. ular terrorist actions during 1980. The government responded to these attacks by tou h- ening its its "state of emergency" and, 25X1 resorted more frequently 25X1 to arbitrary actions against its opponents. In August 25X1 1980, the regime held a national plebiscite on a new 25X1 constitution that would give Pinochet a new eight- year presidential term, with the possibility of reelec- tion in 1989. It also codified the regime's restrictions on political activities and made permanent the ban on all Marxist and other "subversive" groups. The plebiscite outcome-67 percent in favor-dealt a major psychological blow to the regime's opponents, 25X1 especially Communist leaders who espoused peaceful exiled party chief Corvalan announced that the PCCh would now follow an anti-Pinochet strategy employ- ing "all forms of combat, including acute violence. " Communist Party Organization US Embassy reporting makes clear that the PCCh is the largest, most cohesive, and most influential far- left group in. Chile. It is organized in the classic 25X1 25X1 25X1 25X1 pattern of Communist parties worldwide 25X1 At the top is a Central Committee, 25X1 from which is drawn a nine-member Political Com- 25X1 mission that oversees a network of functional and it Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 II I I~ I ii I II I ~ i Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 A. SOMOZA Nicaragua J. VIDELA Arge,liuo G. ALVAREZ Uruguay the PCCh has kept much J. FIGUEIREDO Brad! A, PINOCHET Chile A. STROESSNER Paraguay regional directorates, local committees, and cells com- prising three to five persons each. The party and all of its components are proscribed under the 1980 Constitution.' Consequently, while it has functioned more openly in recent years, of its apparatus covert and highly compartmented. cultivating youth, labor, professional, and other key sectors. CCh membership reached 30,000 in 1985-up from an estimated 15,000 to 20,000 a year earlier-and its youth wing numbered 20,000. The majority of the membership is located in Santiago and other large (The PCCh when last fully legal before Allende s overthrow in 1973 numbered up to 120,000 members and at least twice as many sympathizers The PCCh's major recruitment gains in recent years the party retains substan- tial financial resources and is one of the few Chilean parties with a sizable salaried staff. have been among jobless and underemployed youth, as well as among university and secondary level students The US Embassy notes that the left accounts tor a out 30 percent of politically active Chileans under age 30, and that the well-organized and well-financed PCCh youth wing is gaining popularity on university cam- puses and in slum neighborhoods. Student factions affiliated with the political opposition have defeated progovernment slates in every university student elec- tion since 1983, and in most cases Communists were either on the winning ticket or ran a close second. The US Embassy sources the Communists recently emphasize that the party is well organized nationally, have stepped up their activities among secondary-level has grown steadily in recent years, and is actively students, organizing, for example, several rallies at ' Nonradical political parties are technically illegal, but since the emergence of the mass opposition movement in 1983 the regime forces. 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 - Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Despite the high priority the PCCh assigns to rebuild- ing its strength in organized labor, the US Embassy estimates that no more than one-fifth of union leaders are Communists while 20 percent are progovernment and 40 percent are Christian Democrats. The Com- munists, however, exercise strong influence on the main opposition umbrella labor grouping, the Nation- al Workers Command (CNT), which during the past three years has frequently collaborated with the mod- erate and far-left opposition in staging protests. the party so far has failed in its efforts to recruit members and form cells within the armed forces. The PCCh has also tried for several years to undermine military loyalty to Pinochet through a sustained propa anda campaign Nev- ertheless, we share the views of the US Embassy and the US defense attache that to date this effort has had virtually no impact on the military's attitude toward the Pinochet regime or appreciably lessened the antip- athy toward the Communists that pervades the armed Party Leadership. the overall policy of the PCCh is directed from abroad by Secretary General Corvalan and other exiled leaders-who number nearly half of the Central Committee. The party's internal leaders frequently travel overseas to meet with Corvalan and other exiled Central Committee 25X1 25X1 25X1 25X1 25X1 25X1 I~ Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 11 1 I I li I Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secretary General, Communist Party of Chile Since its founding in 1922, the PCCh has not suffered from significant internal divisiveness or splintering, There has been some dissension recently over how vigorously to pursue armed struggle, but for the past two years a major- ity of the internal leaders and virtually all of the exiled officials have advocated a steady increase in debate on this subject persists, especially because the Communists continue to be shunned by moderate opposition groups because of their espousal of vio- violence. 25X1 25X1 25X1 25X1 Corvalan, who has led the PCCh for more than 25 years, was jailed and exiled after the 1973 coup. He has lived in Moscow since the mid-1970s but travels frequently to Cuba and elsewhere in Latin America. Consistently loyal to Moscow, Corvalan is the main channel through which the Soviets guide the PCCh, He has publicly defended his party's support for armed struggle and made the original announcement on adoption of this strategy in a speech from Moscow in September 1980. he periodically meets with representatives from nonradical Chilean parties and invariably affirms that violence is the only way to oust Pinochet. Corvalan's age-he is in his midseventies casts doubt on his future role as a political leader.) US Embassy source reports, how- ever, that a generation gap has developed and that most of the key internal Central Committee members are in their midthirties, while Corvalan and his exiled companions, as well as the "old guard" leaders still in Chile, generally are in their sixties or older. In press interviews however, top internal and external leaders have again reaffirmed the commitment to armed struggle, which suggests to us that the proviolence group remains in the ascendancy. Moreover, e view these debates not as heralding an impending split but as safety valves that enable the party hierarchy to control PCCh strategy while placating dissident views by allowing fairly open internal discussion over tactical matters. the party. Communist Strategy The PCCh pursues a two-pronged approach designed to increase pressure on Pinochet while rebuilding its own political influence, according to the US Embassy. The Communists have shown considerable tactical flexibility in the recent past-reflecting, in our view, their recognition that they are unlikely to topple Pinochet in the near term-while adroitly exploiting the ambivalent attitude of many moderates toward Wooing the Moderates. The overt element in Com- munist strategy involves working through the Communist-led far-left coalition, the MDP, to lure the nonradical parties, including several in the AD coalition, into a joint campaign to accelerate the 25X1 25X1 25X1 25X1 25X1 25X6 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 - Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret "While Chile Burns, Pinochet and the Cardinal Take Tea" transition to civilian rule. US Embassy reporting emphasizes, however, that many Chileans distrust the MDP's public claims to support pluralism and democ- racy and are concerned that the PCCh's fundamental objective is to install a Communist dictatorship in Chile. Nevertheless, some leaders of moderate parties hesitate to sever contacts with the PCCh or accept the regime's insistence that the party remain formally proscribed (under any future government), maintain- ing, according to the US Embassy, that this would only reinforce the Communists' commitment to vio- lence. These politicians argue that, because the Com- munists traditionally attracted about 15 percent of the vote in elections before 1973 and have basically withstood the regime's repression, they should play a role in the transition. These moderates apparently believe-unrealistically, in our view-that once Pino- chet is ousted the Communists will abandon violence and revert to their pre-1973 adherence to democratic and parliamentary procedures. Moreover, we judge that, on balance, the Communists' democratic rheto- ric appeals to some middle-class and labor groups, intellectuals, and others who still think of the PCCh as having a legitimate place in an open political system of the pre-1973 mold. Spokesmen for the opposition moderate parties have repeatedly urged the PCCh to renounce armed action and join them in a broad anti-Pinochet coalition. ates' overtures but refused to abandon armed action. The dedication of the PCCh and other far-left groups to violence contributed to their exclusion from the "national accord," a document calling for a speedy and orderly transition to civilian rule that 11 main- stream parties-ranging from the right to the demo- cratic left-and the Catholic Church promulgated in "il Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 11 1 I 11 I li 11,111 11 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret 25X1 25X1 Jaime Insunza, about 40, represents the younger struggle" in late 1980, the PCCh has revitalized its generation of leaders who are directing the Commu- ties to other far left groups and has backed both their nist party's armed struggle strategy. Insunza helped terrorist actions and those of the new FPMR. The direct the PCCh youth movement in the early 1970s, Communists intensified this approach when Pinochet since the shift to "armed by 1980 was a member of the Central Committee, and later became the first president of the Commu- nist-dominated Popular Democratic Movement coali- tion. In 1984 the government briefly expelled him from Chile. He occasionally surfaces as a PCCh spokesman, promoting cooperation among all opposi- tion parties against the regime. We believe, however, that Insunza is an important leader of the hardline PCCh faction that favors all-out violence to topple leaders believe that such peaceful protests will not bring the regime to the negotiating table, and that popular support is building for the PCCh's thesis that Pinochet can only be ousted through violence. Preparing for Insurgency. The party's covert strategy is dedicated to Pinochet's violent overthrow. declared the state of siege in November 1984. The Embassy I (report that through Pinochet. ly to the accord. Member, Communist Party Central Committee massive peaceful demonstration in Santiago to sup- port the accord, which was judged by most of the press as the largest antiregime protest since 1973. Nevertheless, 1PCCh accord's proponents refused to collaborate with the Communists in sponsoring antiregime protests in ear- ly September, correctly fearing that they would spawn violence. The PCCh, for its part, has reacted cautious- August 1985. it does not want to antagonize its signatories its campaign of violence the PCCh hopes to promote greater polarization, with the Communists gaining stature as the proponents of the only "viable" strategy to topple Pinochet. The party also wants to foment increased political instability that will ultimately un- dermine support for the President among the armed forces. The Communists evidently realize that to try to carry out a full-scale insurgency would be counter- productive at present, but are persuaded that steadily 25X1 25X1 25X1 25X1 25X1 25X1 25X1 2bAl 25X1 25X1 2bAl 25X1 LJA I late November the AD and MDP jointly staged a Secret 8 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 --- Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret increasing terrorist actions will provoke Pinochet into hardline measures that will eventually create the conditions needed to drive him from office. the party-despite its weakness in organized labor-is also working toward a general strike, which PCCh leaders calculate would facilitate more frequent armed actions, promote mass agitation, and, in the long run, lead to a prolonged "popular struggle" with insurrectional characteristics. addition to several minor organizations, The Communists' Terrorist Allies There are two main Chilean leftist terrorist groups, the Manuel Rodriguez Patriotic Front (FPMR) and the Movement of the Revolutionary Left (MIR), in 25X1 25X1 Although relatively small, the 25X1 expansion of the party's military wing reportedly created pressure from rank-and-file militants to take security service personnel increased during late 1985. In addition, the PCCh accompanied violent demon- strations in Santiago in early November by a series of coordinated bombings that caused major damage to the heavily guarded main power grid in central Chile, reportedly demonstrating greater preparation and im- proved technique on the part of the terrorists. ' For a full discussion of external support to the Chilean left, see the section, "The Role of External Actors." FPMR and MIR are responsible for placing Chile at the top of the Latin American terrorist chart in total number of incidents over the past two years. More- over, they appear to represent an increasingly intrac- table problem for the Chilean security services. Nev- ertheless, we are not certain whether Communist and other leftist party leaders exercise full control yet over the terrorists-despite government claims to the con- trary. Manuel Rodriguez Patriotic Front. Since its creation in December 1983, the FPMR has become the largest and most active far-left terrorist group in Chile, The US Embassy notes that there was a fourfold increase in terrorist bombings in 1984 over 1983-735 compared to 139- and a further surge in 1985-to 865-the bulk of which were carried out by the FPMR. The front's favorite targets have been electrical power grids-it frequently blacks out Santiago and much of central Chile-railway lines, commuter buses, and public 25X1 25X1 7F,X1 25X1 Declassified in Part -Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04TOO794ROO01 00150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret The US Embassy adds that PCCh leaders backed the FPMR primarily out of fear of losing control over the party's activist and radical youth, who were already cooperating with elements of the MIR in terrorist activities. establishments in major cities, but most of these bombings have been staged in a way seemingly calcu- lated not to cause widespread civilian injuries The FPMR also has bombed government buildings and police or military installations, and about 50 of its bombings in 1984-85 were directed at US-related facilities, such as bina- tional cultural centers, American firms, and-once- a car outside the US Consulate in Santiago. More- over, the front has attacked police stations and pa- trols, a military airfield, and even the presidential palace on one occasion. According to the US Embas- sy, 10 members of the security services were killed and another 30 wounded by terrorists in 1985, most probably at the hands of the FPMR. Whatever the degree of control the PCCh is able to exert over the FPMR, we are convinced that party leaders assign the front an important role in their armed campaign against the Pinochet regime. Only a few spokesmen for the front have military training. surfaced in press interviews. One of them claims that the FPMR is run by a nine-person national director- ate independent of any political party or coalition, and that the front consists of commando units located in major urban areas, the bulk of whose members are youths without any previous political background or by late 1985 it had grown substantially, and we estimate that it currently 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 ___ Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret Secretary General, Movement of the Revolutionary Left The nephew of former President Salvador Allende, Andres Pascal Allende, 41, has led the MIR since 1974. Fleeing Chile in 1976, he settled in Cuba and has traveled to the Soviet Union and throughout the world seeking financial support and traini terrorist grotin. have been several recent instances when FPMR units reportedly have temporarily established control over parts of Santiago's slums and given political indoctri- nation and weapons training to local residents. These units have engaged in gun battles with the security forces, sometimes forcing the latter to retreat. These clashes have occasionally been reported even in the Chilean press, thereby-in our view-adding to a growing popular perception that the FPMR is willing and able to confront the security forces, at least in poor neighborhoods. Movement of the Revolutionary Left. The MIR- founded by Castroite students in 1965-is the oldest and historically the most violence-prone terrorist group in Chile. The US Embassy notes that even though the security services ruthlessly repressed the MIR after the 1973 coup-only an estimated 100 to 150 activists remained in the country by the early 1980s-it nevertheless committed the great majority of antiregime terrorist incidents until late 1983. These ranged from "armed propaganda" actions, such as distributing milk from hijacked delivery trucks to slumdwellers, to the murder of police and government 25X6 25X6 Pascal Allende's strident calls for all-out war against Pinochet have isolated his movement from the moderate political opposition and provoked sharp disagreements with Chilean Commu- nist leaders over the pace of antiregime violence. The MIR leader, and constant militant posturing. has been widely criticize or his flamboyant revolutionary rhetoric comprises at least 1,000 militants-about half in Santiago and the rest in other urban areas. in recent months the front has staged more sophisticated and lethal terrorist actions the pace of the group's-- terrorist activities remained low during 1984 and most of 1985. It has concentrated on restructuring, infil- trating cadres back into Chile, and developing closer ties to other far-left groups, especially the PCCh. 25X1 25X1 25X1 25X1 25X1 75X1 25X1 25X1 :25X1 25X1 25X1 q Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Capabilities of the Security Services The Chilean security services have demonstrated uneven effectiveness in meeting the increased armed threat from the left, in our view. Judging by reporting from the US Embassy they have been most successful in preventing repetitions of the large-scale violent demonstrations in downtown Santiago that had threatened public order during 1983, and in protecting senior officers and government officials. In addition, heavy police patrolling of upper-class neighborhoods and of San- tiago's subway system has apparently helped tofore- stall more frequent terrorist actions in these areas.a the security services are frequently hard pressed to con- tain antiregime violence by far-left groups in Santia- go's slums. Moreover, as the US Embassy has noted, the security services have not been able to curb the escalating wave of bombings or other armed actions by far-left groups over the past two years. We also believe that the services' intelligence on the major leftist groups is very poor. They have been often caught unaware by potentially major terrorist ac- have failed to detect most of the weapons shipments from Communist countries that have entered Chile over the past 2 to 3 years. For instance, none of 12 weapons shipments from the La Paz safehouse raided by Bolivian authorities was intercepted by Chilean security personnel, even though the arms entered Chile via six distinct infiltration routes over a 24- month period tions, a The US Embassy reports that Chile's internal security apparatus is composed of the National Intelligence Center (CNI); the Investi- gations Police, a plainclothes force; the Carabineros-a 28,000- member militia-type national police force-and several military intelligence units. All are under the jurisdiction of the Defense Ministry, except the CNI, which is technically under the Ministry of Interior but is staffed by military officers. In anticipation of large demonstrations, the security services often are backed up by By late 1985 the MIR had partially revitalized its apparatus within Chile 4nd was preparing to compete with the FPMR as the leading terrorist group. According to the US Embassy, the rebuilding process altered the MIR's membership, which had previously been heavi- ly middle class and middle aged. The reorganized in our view, had become a more mili- tant-though perhaps less well trained-terrorist or- ganization. 25X1 25X1 25X1 25X1 25X1 LOA I 25X1 25X1 25X1 2.5X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 - Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret according to the US Embassy. A special judge ap- pointed to clarify the case indicted 14 Carabineros for the killings. These developments led to the firing of the commanding Carabinero general, the dismissal of numerous senior officers, and the reorganization of Carabinero antisubversive units, according to the US 25X1 25X1 25X1 When leftist terrorists staged several lethal attacks on Carabineros in October 1984, Pinochet imposed the state of siege, which lasted until May 1985. During that period, the security services conducted mass sweeps of slum neighborhoods, temporarily detained over 8,000 persons, sent hundreds of individ- uals to internal exile, and frequently resorted to torture, according to the US Embassy. state of siege caused no appreciable slackening in the intensity of leftist terrorist bombings. Carabinero mo- rale suffered under the state of siege as theforce bore the brunt of the expanded enforcement measures without higher manpower levels or extra equipment. The situation in theforce deteriorated further in mid- 1985 because of a scandal over the slaying of three Communists by a suspected police death squad, The US Embassy then forecast that infighting among the security services would become more bitter and hamper counterterror- ist operations. The new Carabinero commander con- firmed to US officials at the end of 1985 that morale had plummeted and that his force was stretched to the limit. Chilean authorities are especial- ly confident that in any direct confrontation the security forces would decimate the far left-a judg- ment that we share. Moreover, while many officials regard the bombings perpetrated to date as little more than harassment, they continue to support Pinochet's harsh policies and see no alternative to continuous repression of the revolutionary left. 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 11 I I ... 11 1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret ripe for revolution, that Pinochet's power is weaken- ing, and that it supports efforts by leftist revolutionar- ies to mount an insurgency over the next few years. In February 1985, Cuban President Castro even ac- knowledged to US officials-through a senior aide- that Havana is supporting "insurgents" in Chile with "Carabineros-Protecting God, Country ... and Santa" The Role of External Actors In the past few years, and especially since the out- break of vigorous anti-Pinochet protests in 1983, the Soviet Union, Cuba, and such radical states as Libya have increased their support-arms, training, funds, and guidance-to Chilean far-left groups advocating armed strug Meanwhile, number of governments in Western Europe, Latin America, and elsewhere are permitting anti- Pinochet activities by Chilean far leftists within their territories. only a few thousand of the estimated 1 million Chileans living abroad are politically active, but that the best organized and most energetic belong to the PCCh and allied groups that seek foreign aid to oust Pinochet through violence. Cuban and Nicaraguan Guidance. The general thrust of Cuban policy toward Chile is clear, in our view. Havana has frequently indicated publicly that "objective conditions" in Chile are becoming arms, supplies, and training. Castro has advocated that the Chilean far left contin- ue trying to forge links to moderate opposition groups to be in a position to exploit the Pinochet regime's eventual downfall. 25X1 9F,)(1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 --- -- --- Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 ~~ I I II I I i I JI I I i Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 MIR's tactics. latter's top leaders live in Havana and many MIR members have been trained in Cuba prior to serving in Nicaragua, Angola, and elsewhere-Cuban offi- cials probably help formulate a good deal of the the Sandi- nistas have offered training, arms, and other aid to the MIR and several minor terrorist groups. F_ Chilean far left's campaign of violence. the Pinochet government publicly and endorsed the The ties between the Sandinistas and Chilean radicals date from the mid-1970s, when exiled MIR militants and other leftists took part in the anti-Somoza strug- g] In recent years, substantial numbers of MIR militants relocated from Cuba to Nicaragua, working in several government agencies and serving as military advisers in the armed forces. Sandinista officials occasionally have criticized than does Havana. Nevertheless, we believe that, while contacts between the Sandinistas and Chilean subversives are increasing, Managua still provides considerably less assistance to the radical left PCCh is rigidly committed to Soviet policy guidelines, and we believe that the PCCh receives advice on a systematic basis from Moscow. 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 We believe, however, that be- cause of Havana's longtime ties to the MIR-the the Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret Western Europe and South America. several Western European na- tions-especially Sweden, France, Italy, Spain, the Netherlands, and West Germany-support the efforts of both Chilean leftists and moderates to oust Pino- chet and have given exiled Chilean political activists safehaven and various types of financial assistance. several European political parties and foundations fund and maintain close ties to a wide variety of Chilean parties. The US Embassy adds that financial aid from abroad is increasing and has also gone to Chilean research centers, human rights groups, and trade union organi- zations, many of which are influenced by Communist and other far-left groups. While the Embassy notes that several million dollars are contributed to these entities annually, we have no breakdown on the amounts that may be funneled to the far left. 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 I I1 S li 1-1.1 I I 1 11 I dui i Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Chilean opposition groups have also benefited from the return to civilian rule in several South American countries during the past 2 to 3 years. The new democracies' publicly expressed distaste for Pinochet and the generally more open political climate in the region have created more favorable conditions for exiled leftists operating from countries neighboring Chile. For instance, there is easier movement through Argentina, Bolivia, Peru, and other countries into Chile by radical leftist and 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 -- - Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret terrorist operatives. forces within Chile, and generates assistance from organization known as Democratic Chile has emerged as the largest and most active anti-Pinochet exile grouping in South America. Based just across the Chilean border in Mendoza, it is reportedly supported by various leftist Argentine political parties and the local Argentine provincial authorities. Democratic Chile coordinates both moderate and leftist exile groups in Argentina, channels funds to anti-Pinochet Prospects The Most Likely Case. Our central conclusion is that the revolutionary left in Chile will systematically escalate armed attacks against the security forces and organize a continuing series of violent protests over tionary left will defeat the military in battle. the next two years to prepare for an eventual insur- gency against Pinochet. We believe that the PCCh and the FPMR are able and willing to press this effort vigorously, even though what we know of Communist thinking suggests that the party does not expect to topple the dictator any time soon. Nevertheless, in our view, the party believes that in the long run-perhaps by 1989-it can spark civil war in Chile, or, at a minimum, a prolonged period of armed confrontation that would force the military to oust Pinochet. The Communists probably calculate that playing a key role in driving him from power would enable them to dominate the post-Pinochet era, especially if the military agrees to a quick return to civilian rule. Nevertheless, even if Pinochet's military support re- mains firm in the face of sustained armed action by the Communists and their allies, we judge that the PCCh leaders will persist in their insurrectionary strategy, believing that in time a strengthened revolu- Consequently, we expect the incidence of terrorism, especially that of the FPMR-which probably will come under full PCCh control-to increase during 1986 and 1987. We also expect terrorism to become considerably more lethal, involving more attacks on military personnel, installations, and government buildings. In addition, we believe there will be more frequent terrorist actions in middle- and upper-class neighborhoods in Santiago, as well as against busi- nesses, banks, and probably the public transportation system, resulting in more civilian casualties. US com- panies and other foreign-owned establishments may come under somewhat more frequent attack, although we doubt that they will become a primary target for terrorist bombings, since-despite ample opportuni- ty-the far left has shown little inclination so far to attack them on a major scale. In our view, the Communists also see armed actions as promoting political instability and sowing doubts among the population concerning the capabilities of 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret the security forces. They probably want to give party and FPMR militants returning from training abroad ample opportunity to use their new skills, to continue pressing the overtaxed Carabineros and other ele- ments of the security services, and to provoke Pino- chet into further hardline policies, thereby accelerat- ing political polarization. They clearly look upon a polarized political atmosphere as beneficial to their long-term strategy, in our opinon. The Communists are also likely to promote other forms of violence, such as protest actions by students and slumdwellers and general civil disobedience de- signed to lead to a national strike. In our judgment, however, the PCCh's success in this area will more directly depend on popular support and the attitude of moderate opposition parties than in the case of terror- ism. The US Embassy reports that the Communists and their allies are pleased over Pinochet's intransi- gence regarding a dialogue on a transition to civilian rule and are lobbying with the national accord spon- sors for closer collaboration in a series of antiregime protests this year. Consequently, we agree with the Embassy that 1986 will almost certainly be a year of confrontation between the political opposition and the regime on various fronts and that the Communists will play a leading role in assuring that anti-Pinochet demonstrations are accompanied by considerable vio- lence. We believe that, although the Communists have largely overcome the isolation they faced when they were excluded from the national accord last August, it is highly unlikely that they will be admitted to the accord in the near future. the moderate opposition is currently reluc- tant to ally formally with the PCCh. The moderates realize that this would preclude an accommodation with Pinochet or with the strongly anti-Communist armed forces, and they also basically mistrust the Communists. In our view, however, the Communists are now confident that their advocacy of violence as the only viable tactic against the regime will slowly gain currency among moderate parties and much of the general public. We also believe that their expecta- tions are realistic in several respects. For instance, if, as we expect, Pinochet continues to refuse an acceler- ated timetable for a transition to civilian rule, many nonradical political groups will become frustrated over their limited options and be tempted to work with the PCCh. In addition, we judge that sluggish eco- nomic performance this year and in 1987 will further weaken popular support for the regime and could catalyze spontaneous mass protests-as occurred in early 1983-which the Communists and their allies would almost certainly exploit to promote violence. The PCCh leadership has so far not heeded proposals by extremist elements in the party to assassinate Pinochet or other top officials. Nevertheless, US Embassy indicates that Pinochet's and other senior officials' security precautions proba- bly would not deter a serious terrorist assault against them. In fact, a rocket attack on the presidential palace in mid-1985 reportedly failed only for mechan- ical reasons, and twice last year terrorists exploded small bombs at sites where the President was to We doubt, however, that any such plans would be implemented unless there is a dramatic downturn in the PCCh's political fortunes later this year, such as a sudden decision by Pinochet or the armed forces to negotiate a transition timetable with the moderate opposition. The Communists almost certainly would be excluded from these negotiations and, faced with renewed political isolation, might assassinate Pinochet or other senior officers to derail the transition talks and promote political instability. We believe, however, that the MIR may be more inclined than the PCCh to murder senior officials, calculating that this would refurbish the group's reputation as a major terrorist organization. More- over, history demonstrates that this group has the determination to conduct political murders. The num- ber of MIR activists in Chile is increasing, and many have received 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 -- - Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret sophisticated military training abroad. The MIR bombed a Carabinero bus in early February resultin in numerous casualties tions, in our view. A decisive factor affecting prospects for the revolu- tionary left will be the security services' ability to counter violence and control antiregime demonstra- the services will probably contain street protests over the next year, they have yet to curb terrorism, including acts against the security services themselves. Moreover, we question their ability to counter a more sustained campaign of violence by the PCCh and FPMR, especially if other opposition groups join the Communists in staging frequent civil disobedience acts and antiregime protests. On balance, however, we believe that-barring assas- sination-the far left will not seriously threaten the stability of the Pinochet regime over the next year. Moreover, we are convinced that the security forces would easily defeat the far left in any direct confron- tation. Nevertheless, if there is no progress on a transition dialogue by the end of 1986, we believe that the far left's plans to mount an insurgency will become more feasible. Consequently, in our view, the longer the Communists are able to carry on an intensifying armed struggle, the poorer Pinochet's prospects become for avoiding challenges from the military and, ultimately, of staying in office beyond Alternative Scenarios. We see two alternative scenari- os regarding prospects for the revolutionary left in Chile over the next two years, but believe that either has only an outside chance of occurring. The first is an all-out Communist military offensive-perhaps by early 1987-involving a sharp escalation of armed attacks on military and police establishments, system- atic efforts to disrupt the electricity supply to Santia- go and to cripple railway and port links, and sustained bombings in upper-class sections of the capital. In addition, the PCCh and the FPMR might take control ment officials, and even Pinochet himself. of slum neighborhoods and fight to hold them against the security forces, hoping to establish permanent guerrilla enclaves. Finally, the far left might attempt to kill large numbers of senior military and govern- 25X1 25X1 25X1 We believe that the PCCh is currently too cautious to embark on such a risky venture, and would do so only out of desperation if excluded from a peaceful transi- tion to civilian rule negotiated by the moderate oppo- sition or because of miscalculation by overconfident hardline party elements. The Communists almost 25X1 certainly realize that failure would subject them to massive repression. They also probably know that defeat would severely damage their public standing and that most other political forces would repudiate their actions, leaving them more isolated than ever. In addition, we believe that Communist leaders think that their party still is too small and its armed contingents too weak to challenge the military in a The second scenario involves a Communist conclusion that armed struggle cannot topple Pinochet and that, therefore, the party should revert to its pre-1973 peaceful approach. Thus, the party might respond to moderate appeals to play a "constructive" role by ceasing violence and working to engage the regime in a dialogue on a transition to civilian rule. We believe, however, that the Communists remain convinced that Pinochet will not step down voluntarily, and that they must use force either to oust him or show the military that the country is ungovernable under Pinochet. Consequently, we believe that the Communists would be reluctant to abandon violence because, in their view, this would strengthen Pinochet's power. Never- theless, if Pinochet were to decide to resign-a highly unlikely prospect, in our view-the Communists prob- ably would be thrown into some disarray and might decide to halt, at least temporarily, their violent activities. Thus, they might decide that any other policy would be counterproductive during a period of general euphoria brought on by Pinochet's stepping Declassified in Part -Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04TOO794ROO01 00150001-2 II 1 1 11 I I I 'l I i i Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret Implications for the United States We believe that escalating leftist violence in Chile adversely affects US policy goals because it reduces the prospects for an orderly transition to democracy. Even if the left's armed struggle does not seriously threaten political stability for the next two years, US interests will most likely suffer. Continued leftist terrorism would probably frustrate Washington's ef- forts to encourage negotiation on a transition formula and buttress moderate opposition unity since Pinochet almost certainly would capitalize on the violence to rally military support for his harsh policies and justify his contention that political liberalization is impossi- ble until the subversives are eliminated. An all-out Communist-led insurgency against Pino- chet would, in our view, harm US interests much more seriously, because it could lead to civil war on the Central American pattern. Not only would the Chilean Communists stand a good chance of reaching power by violent means, but Soviet and Cuban stand- ing would be greatly enhanced by the prospects of establishing a new Marxist-Leninist state in Latin America and the consequent blow to Washington's influence throughout the region. Moreover, the Sovi- ets and Cubans would almost certainly attempt to duplicate their success in Chile by expanding aid to selected revolutionary groups elsewhere on the continent. US interests would benefit in the short run if Pinochet were to unexpectedly defeat the far left and dramati- cally reduce terrorism because this would, at least temporarily, reduce political instability. But while such a victory would deprive Pinochet of his chief justification for continued repression, he might try to portray a success against the far left as giving him a mandate to run for the presidency again in 1989. Thus, he might claim that he needed another term to complete the economic and political rebuilding of the country before it could return to civilian rule. In such circumstances, US interests in Chile would suffer in the long run because, in our view, the root causes of polarization and eventual political instability would persist. We believe that the most favorable development from the US perspective would be a decision by the Pino- chet regime to work with the moderate opposition on accelerating the transition to democracy. Such a move would be greeted enthusiastically by the opposition parties and the general public and, in our opinion, would constitute a major setback for the far left. The latter might try to derail the transition through sensational terrorist actions, but the vast majority of Chileans would condemn such tactics. Moreover, the government could further isolate and discredit the far left by ignoring violent provocations and pressing ahead with transition negotiations. We believe that, as the return to civilian rule neared, the Communists and their allies would have little chance of either mounting an insurgency or playing a significant role during the initial phases of democratic government. Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 ___ ll Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2 Secret Secret Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP04T00794R000100150001-2