COMMUNIST STAND ON VIAL ECONOMIC BILL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R005000550003-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: March 27, 1999
• Sequence Number: 3
• Publication Date: June 20, 1950
• Content Type: REPORT

~.0LASSIF ICAT1O;; 25X1A
Approved For ReI TEF 11999 'H911.M-1?C At M2-00451
41-2 INFORMATION REPORT CD No.
COUNTRY
Chile
DATE DISTR, 20 JUN 50
SUBJECT
Communist Stand on Vial Economic Bill
NO. OF PAGES
2
CON FIDENTI 4L
PLACE
25X1 A
NO. OF ENCLS.
ACQUIRED ~
(LISTED BELOW)
DATE OF - _. - . - - SUPPLEMENT TO
REPORT NO.
The following report traces the position which the Communist Party of Chile
(PCCh) took concerning the now economic bill proposed by Finance Minister
Caries Vial Espantoso,
Between 10 and 12 May negotiations took place between the Chilean government
and the PCChr, The government, anticipating a close vote in the House of
Deputies on Vial ~ls economic bill, established contact with the Izquierda
Democratica de Chile (IDECh), the Communist-dominated political coalition,
in order to secure DDECh votes, This contact was made between Fernando
Maira Castellon, Radical Deputy, and Humberto Martonez Quezada, IDECh Deputy?
2.- In return for the two II)ECh votes in favor of the Vial bill, the IDECh
demanded the following concessions from the governmment: the repeal of the
anti-Communist law of Defense of Democracy; the resignation of the Winister
of Labor, Ramon Plaza Monreal, and the immediate solution by the goverment
of the pending labor strikes.. The ILJECh also attempted to convince the
Popular Socialist Party to make the same demands on the government in return
for their six votes in the House of Deputies,, The Central Committee of the
Popular Socialist Party, however, would not accept this proposition and
decided to vote for the governnent0 s bill edi thout making any conditions,
This situation xeakened the IDEChrs position, but its two votes were still
considered of such importance that President Gonzalez Videla instructed
Fernando Eaira to obtain. at the least, the IDEChasa agreement to abstain
from the voting This agreement was reached on the basin of the government's
promises to refrain from exercising a^tivaly its powers under the Defense
of Democracy Law, and to study the possibility of Including in the Cabinet
a representative of the workers q unions
The IDECh failure to vote for the Vial bill caused a violent attack on the
Communists. The press attack on them was reportedly ordered by the govern-
rent, The Junta Nacional do .anpleados de Chile (JUNECh ), at a meeting on
11 May,, registered a strong criticism or the Cor unists ? failure to favor
the Employees' wage increases through the IDECh votes. Faced with this
adverse criticism, the Political Commission of the PCCh held a meeting to
This document Is hereby regraded to
CONFIDENTIAL in accordance with the
letter of 16 Ociober 1978 from the
Director of Central Intelligence to the
Archivist of the United States.
Approved F
biia se l 9 /09 : CIA-R
 COWIUI TI&L
Approved For Release 1999/99/09 : CIA-RDP82-0045716666005 ENTIAL
discuss the PartyB position, It was decided that, because of the violent
opposition to the Communist stand on the Vial bill, the Political Commission
would retract its fornier position and would back the bill in subsequent vot'
:ing in the Senate Among those attending the meeting of the Political
Commission were reported to be: Iiguel Concha Quezada, Rene Frias, Carlos
Rosales Gutierrez, Volodia Teitelboim Volosky, Luis Reinoso Alvarez, Luis
Valenzuela, Carlos Contreras Labarca, Jorge Giles Pizarro, Santiago Aguirre,
and Pedro Diaz Iturrietac.
Approved For Release 1999/09/09 : CIA-RDP82-004