COMMUNIST PARTY FINANCES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R004000350012-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: November 9, 2016
• Document Release Date: March 27, 1999
• Sequence Number: 12
• Publication Date: January 9, 1950
• Content Type: REPORT

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CENTRtV ve _ _or _e ea e . P82-004 fKD0
Sanitized - Appro
y. m...cs u 1%08% A CD NO
Imam 1
COUNTR' Chile
SUBJECT' Communist Party Finances
PLACE 25X1 A
NO. OF ENCLS.
ACQUIRED (LISTED BELOW)
DATE OF INF
25X1X
CLASSIFICATION Sy
21 in aldition to this campaign,, another was launched slr.ong the non-professional
militants to collect a million pesos,, All the militants, workers, employees,
aousewives, etc., were given a special quota to make up this sump Although the
full amount had not been collected, it was reportedly near the million marko
Of this amount alrlto at all of it has been disbursed for aid to retired Party
r;.embers, individuals engaged in various strikes, and for propaganda and travel
expenses.,
Nom. al Sour e
3~ The remainder of the Party's income is from the regular quotas assessed through-
out the entire country, and amounts to between 250,000 and 300,000 pesos monthly?
The expenses incurred through underground operation of the PCCh, the salaries
of the Party functionaries, and funds for their are paid from these
quotas.
:y cial"__ Iom.e
DATE DISTR. 9 JAIN 50
NO. OF PAGES 4
SUPPLEMENT TO
REPORT NO.
CONFIDENTIA'
This document is hereby regraded to
CONFIDENTIAL in accordance with the
letter cf 13 O obey tlz~73 from the
t Cen' ; ts.fe;t`..,;.^Q to the
Direc 7r ?~~
t ,... United Slates.
In July 1949, Luis ftelnoso called on the Political Commission of the Communist
Party of Chile (PCCh) to activate the collection of the dues and to collect
special funds for the Party,-stating that.if this were not done quickly they
would have no roney for even "the most essential expenses"., The Commission
immediately instructed the regional finance officers to make the collections
as soon as possible. Each militant engaged in a well paying profession was re-
quested to lend 10,000 pesos,, This loan was to be in Cash.1 or in notes destined
to pay contingent liabilities. According to Haydee Alarcon. Communist in charge
of finances in the "Pro-=Peace" movement, there are 3,000 professionals in the
Party.. Between 1,300 and 1,400 responded to the appeal., and gave money or
drafts.
Special funds required for maintaining the Editorial Austral are obtained through
the Editorial Lautaro of Buenos Aires and Pueblos Unidos of Yontevideoo From
I?'ontevideo, books are sent without cost, and are sold in Santiago to maintain
Doc~~A~ent Ito. _ _ ~ ~-~-=--=---
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CENTRAL LNTEILIGENCE AGENCY
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the bookstore. Thus, the PCCh is relieved of the expense of maintaining the
Editorial. Austral, which otherwise would disappear There is considerable
interest, -ithin the Party, in. keeping alive an organization which can serve
in the so-.called Epoch of Recuperationu
5. The financing of the eProoPeace'" movement, of which Haydee Alarcon is in
charge, is carried out by means of bonds ranging from 50 to 500 pesos., The
bonds in the first issue, for the purpose of creating funds for the movement,
were 500 pesos each and were sold until a sum of 50,000 pesos wns acquiredo
At present, there are in circulation 50 peso bonds for maintaining the
activities of the movements In addition, collections are made at each public
gathering. The money collected for the "Pro-Peace" movement is deposited in
two current accounts in the names of Haydee Alarcon, in the Banco Espanol,
and Santiago Labarca, in the Bank of Chile.
6. The PCCh has also received some funds from its affiliates in the Communist
wing of the Confederacion de Trabajadores de Chile (CTCh) Each member has a
carnet on which he pays a quota for the CTCh apart from the syndicate quota,,
At present, the arty depends most on the Federation de la Construction, which
is pia y-ing the role previously played by the Federacion Industrial Y inera,
which is now in a state of disorganization:: Bonds have been issued to pay the
salaries of the national and regional leaders of the CTCh, and are distributed
among workers, students, and members of leftist political parties
Assets LO Qut -a, Argvi c
17:, Baiow are listed the property and holdings of the Communist Party in the out-
lying provinces, according to available information:
Province of Tarapaca: The Communist Party has a house and a printing
press in Iquique., which publishes the newspaper
El DosgjatM~i
Province of Antofagasta; In Antofagasta the Communist Party owns various
houses, including houses for workers;, acid a
press. One of the houses was used by the CTCh,
The EI Por~ular newspaper was published on the
press of the CTCh,,
In Tocopilla the Party has a house and a press.
Province of Coquimbo.. In La Serena the Party has a house and a press
which published El;_Szg1o _cie, C uimb +
Province of O'Higgins: The Party had a press which was req-M.siti_oned by
the government.
Province of Concepcion: The property in this province belongs to the CTCh,
The Party makes use of the CT'Ch property, in
particular that of the Federation ? inera,,
Province of a,rauco; Same as Concepcion.
krovince of Valdivia-' The Party has a house and a press. The press formerly
published a newspaper, rtad, which has been
discontinued,
The Party bar- never had property nor presses in Atacama, Valparaiso., Aconcagua,
Co1ohagua, nor in the rest of the southern provinces, Valparaiso has always
been unstable for Party purposes,
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Santis Real Es-
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8. In the following resume are indicated the quantities received and spent by
the Communist Party since the sale of the ,E,~ Silo building in Santiago.
In the first part of the resume, proceeds of the sale of this building have
been divided in order to arrive at a theoretical balance of the money which
the Cormuniet Party now has, However, the resume is not complete, since it
does not contain the interest which the Sociedad Barra y Cia. Ltda, must pay
to indemnify this property. It is believed that the completed account will
reflect a less favorable cash position for the Party since the financial situa-
tion of the Sociedad at the moment of undertaking this deal was very precarious,
and a large part of the money obtained had to be spent in paying past debts
FAnan .ia1 State
a) Sale of building }!:1g;
1) Debt, Caja Credi.to Hipotecaric,
obligations .Nos 1341 and 50699; 228000.
2) Initial payment as of 21 Sep-
tember 1918 2,000,0.00.
3) Final payment 18 November 1948 2,O0O,O00,
4) Payment 6 ,sonths 2,8861POOO,,
5) Payment 12 months 22886,000'1
Total -.-----r_---- w-W.,. - ~._
b) Interest on d) and e):
1) On d) ,; e) 6- .onths term 8 as
of 1.8 May 1949 230,8$0,,
2) On e) 6-months as of 18 -ay
18 November 1949, 8% 1.1.5,4404
Total
c) Expenses on sale of building BJ._So:
1)
Debt to Caja Credito Ripotecario,
obligations No, 1341 and 50699
2282000.
2)
Commission 2% to agent
200,O00.
3)
Transfer tax 2%
200.9000
6)
Expenses dccumentation
5,,7:7,
5)
Counsel
Julio Pine 26,156.52
Raul Chacon 21.9 a 830?9:5
Juan Contreras 13Oy4.0O.,16
Lawyer fees 37n63B:,76
P /10 O0O,, 000 ,
346,3200
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CENTRAL INTELLIGENCE AGENCY
Liabilities As lets
6) Cancellation of debt with
Caja Nacional de Ahorros
(Frohib. fs 935 1992 1947) 1.020,000.
7) Cancellation Institute de
Credito Industrial
Loan
Advances
Interest 7%
8,40, 000
1,000,0000
128,800,
Total ?--__-d..
--r_.-_
P/4,036,61339
.
d)
e)
Indemnification lot in El
Arrayan :
Purchase of Lira 363 building-
180,000,
1)
Estimated initial payment
155,000.
2)
Final payment
970,0000
3)
Debt to Caja Nacional de
Ahorros
?5,000,
Total ------ -- -_-w--.. 1,200,000.
f) Expenses, purchase of Lira 363 building:
1) Tax, transfer
24,000.
2) Agent commission 21 24,000.
3) Charges documentation 1.,831.
.r ._ .v ~. ..
Total
g) Lira 363 property debt;
h) Spent on parch 1949 elections:
i) Estimated balance on hand 1.8 November 1949:
Assets
a) Lot No. 6 in E1 Arrayan: 300,000.
b) Lira 363 building: 1,200,000.
c) Estimated balance on hand
18 November 1949:
otal -- - - ? -? - 5,454,875,;61
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49;,831.
75, 000
1,000.,000"
,,~'7~~}}6
P/10,421,320,00 P/10 421,320.
C0 ENTIAL
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