EYES ON CHILE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01601R000400270001-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 100
• Document Creation Date: November 17, 2016
• Document Release Date: August 7, 2000
• Sequence Number: 1
• Publication Date: December 31, 1971
• Content Type: NSPR

STATINTL
Y
'Approved For Release 200~~`~1 ~~' C1A-RDP80-01601 8000
3~.D~C 197
The increase of CIA and other U.S. rmper-al-
ist intrigue in Chile puts a responsibility upon
progressive and democratic-minded people in the
Uriited States, let alone anti-imperialists and Com-
munists. Areactionary coup in Chile would have
serious consequences for democratic struggles in
the United States itself, both directly and indirect-
ly. ~
The history of U.S~ imperialism s intrigues
against people's rule in Cuba, should be sufficient
warning. .
The significance of the fact that Nixon, then
Vice President, was a prime advocate of arming
Cuban counterrevolutionaries and of the Bay of
Pigs invasion of Cuba in April, 1961, must be given
its full weight by all of us. To strengthen the
"Hands off" Chile movement, and to expose and
combat U.S. imperialism's activities-is a responsi-
bility that rests on all of us. _
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 STATINTL
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ENQUIRER I _
M - 18~ 425 ~ 1g~~ .
S - 302,445
~.llende Tighteias His G~i~
TIC ANNOUNCF~NiENT by Dr. When the symbol of Marxism every-
; Salvador Allende, the Marxist president where must make so public a concession
of Chile, that his government would seize
.full control of Chile's food distribution of the superiority of capitalism, Marxists
was sadly predictable, in light of other everywhere must feel a bit tuieasy about
developments in that land. the validity of their theories.
The nationalization of major industry,
the stifling of an opposition press, and
the blaming of all expressions of discon-
tent upon agitation by the U. S. _Cii~;al
~Inielligence Agency indicate that Allende
--the fi~r~ii'`o-r'~'"y"hiarxist ever to be
freely elected by any country in the world
-is little different in the application of
repression from -those Communists in
other lands who seized power by violent
means.
Dr. Allende's announcement followed
a protest march by Chilean women, who
took to the streets and banged empty
pats, symbolic of their discontent over
shortages in the food supply, especially
meat, poultry and dairy products.
Sounding a particularly ominous note,
Dr. Allende called for the organization
of "neighborhood vigilance committees"
to control supplies and prices in stores
q,nd other private outlets.
As could be expected, Dr. Allende
blamed Chile's economic difficulties on a
"campaign against Chile," waged by in-
terests damaged by his government's
seizure of foreign-owned copper, iron and
nitrate properties, as well as large do-
mestic industries.
3udging, however, from the track rec-
ords of other Communist economies, the
root causes of Chile's economic mess lie
much closer to Chile's presidential
palace.
The Soviet Union, for example, has
.
shown a great eagerness in recent talks Now, it appears that Allende
with Secretary of Commerce Maurice H
But even beyond industry ca.n be seen
the true Achilles' heel of Commuxxist na-
tions everywhere the total failure to
achieve a viable agricultural system.
Obsolete, capitalistic America has been
selling grain to the USSR for years.
Other Western nations have, similarly,
been peddling their foodstuffs to the
People's Republic,of (Communist) China.
Some of the problem could no doubt
be laid at the doorstep of overpopulation
in China and large areas of wasteland in
Russia, but consider the case of Castro's
Cuba.
When Castro launched his revolution
against the Fulgencio Batista govern-
ment, it is true that Cuba was ripe for
rebellion. The island nation had -many
problems, but famine was never among
them. Despite the shortcomings of the
old military dictators, there was always
a plentiful harvest of sugar cane, tobacco
and other farm products.
Castro wrought a change in agricul-
ture in record time. Refugees from his
warped style of liberation brought tales
of starvation with them. Food rationing
and the shortage of milk for children
quickly became a commonplace experience
for the Cuban people.
Despite no formal diplomatic ties with
Washington, Castro, too, had to appeal
for aid from the United States. It came
in the form of radical student;., who
journeyed to Castro's paradise to help
with the sugar-cane harvest
Stans to sell raw materials to the United brought similar nutritional hardship to
States in return for such finished prod- a rocky, mountainous land that has never
ucts as trucks, automobiles and machine known agricultural abundance.
tools and the use of Americaxx technologic Z'Ve sympathize with the Chileans who
cal expertise. The willingness and obvious must endure this hardship, but, from the
need by the Russians to make such a e h w t r
swap must /~p,r~a~~ ~~r~~el ~,~~~6~ :~~I~,`~.Q~I~;~~~b000400270001-1
pride, aanS~thing to do with it.
 It'ASFiiI~G~G''l D~?ir.Y '>~~
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Chile: One year later and a lot less free
~~III~N Salvador Allende, a i6larsist,
was elected president of Chile a year
ago, he promised to lead the country to
"socialism" by democratic means.
Looking at Chile a year later, a sad
prediction must be made: either Dr.
Allende or C1~ile's democratic tradition
will survive -but not both.
In almost every action since taking
office, the man who likes to be called
"comrade president" has shown that
his talk about democracy is merely tac-
tical anti that he secretly aims at set-
ting up a communist-style "people's
dictatorship," Here are some exam-
ples:
? IIe is diverting government adver-
tising into Communist and eatxeme
Ieftist newspapers, starving the demo-
- cratic press and harassing it in other
ways.
o In times of tension, he shuts down
the Christian Democratic and National
parties' radio stations and lets Commu-
nist propaganda monopolize the air-
waves.
o When iVlarxist students riot at the
University of Chile, he has the anti-
lwiarxist rector arrested, not the rioters.
? He has proposed replacing counts
and parliament with "neighborhood
courts" and a "people's assembly."
Qnly fierce opposition by the democrat-
ic parties has prevented these instru-
rnents of totalitarian takeover from
being .put in position.
Among his few popular moves, Dr.
Allende has confiscated U.S.-owned cop-
per mines (in common with most peo-
ple, Chileans like something for noth-
irg) and decreed-a 35 per cent wage
increase while holding down prices.
The phony economics .of the latter
move is beginning to show. Chile is suf-
fering from a flight of capital, a drying
up of investment, inflation, massive for-
eign debts coming due, falling agricul-
tural production and soaring food im-
ports.
Recently, about 5,000 middle-class
women marched on the presidential pal-
ace, banging empty pots to show their
anger over food shortages. Dr. Allende
panicked, declaring a state of emergen-
cy and screaming-about "fascist" plots
allegedly nurtured by the United States
and its Central Intelligence Agency,
This cvas, of course, a typical dema-
gogic effort to make the United States
the scapegoat for the hash Dr. Allende
has made of Chile's economy. Whether
the Chilean people will fall for it is not
known.
Also u n k n o w n is whether Chile's
armed forces will stand by as Dr. All-
encle tries to fasten a totalitarian yoke
on the country. They have a tradition of
staying out of politics, and Dr. Allende
is evidently cow~ting on this as he cuts
away at Chilean democracy, one slice
at a tune.
The comrade president, a friend and
admirer of Cuba's Fidel Castro, clearly
.hopes that his election will be the last to
be freely contested in Chile. The suc-
cess or failure of his plans will be fate-
ful for the 10 million Chileans and possi-
bly, because of their example, for much
of Latin America.
STATINTL
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9 ~~;~ 1911
~~~~~i~~~~ ~ij~~~~~a~
.~t~l ~~ ~ ~ ~ t~l
t ~~~~~~ ~-~ ~~~~
Chile's Chief Says `Fascist
Sedition' Grollght !~tlaut
' ACtIOn Oil Di8t1'IiJU?t10n
_;Vy ruAr1 de aNls
special to The Revr Ye: ~ Time5
SANTIAGO), Chile, Dec. 8-
Fresident Salvador Allende Gos?
lens anliounced today that his
Icft.-wing Government would;
take aver full control of food
dislril7ution in Chile as part of
an "offensive against Fascist
sedition."
The C~overument toak control
of three rnajar wholesale dis-
tributors and put 22 cattle auc-
tion rnarl:ets `:~~..ier state man-
agement.
T]]e aCtlatt Gallic R PJeCI{
after the opposition Chr!st.ian
Deli~ocratic and National parties
arganized a major protest
march. by 'women who banged
pots to symbalizc anti?Govern-
ment sentiment aver food-sup-
by the Government's poucy
of nationalizing foreign-o',vne
copper, iron and nitrate prop-
erties as well as large domestic)
industries.
The "campaign against Chile"
he said, included. the reduc-
tiara of forci~n lines of credit:
and the comment by Herhert~
G. Klein, President Nixon's di-
rcctar of comnrliricat.ions, that
Chile's GovennnenC "will not
last long."
"To those who say the days
of Chile's papular Government:
are tnutthered, I say that they
can swallow their tongues,
that this is not a no ma.n's
land, alid that t1iC Marines are
not going to impose their will'
here," declared Dr.~ Allende as~
~tlrc .5,000 delegates and ~ob-~
servers from socialist countries
attending. the union congress,
,stood and cheered iu the
~Caupolican 'T'heater.
"If they restrict our credits,
ewe will have to tighten our
',belts, but fer each notch that
the workers nave to take in,
the reactionaries here- will
have to take ill 10," Dr. ,
Allende added.
STATINTL
ply problems, particularly short-
ages ?of meat, dairy products,;;
and poultry. ~ f
The "March of the L'mpty
Pots," in which at least 5,000
women joined, h~ s b~cn taken
by Dr. Allerde's Marxist Gov-
ernment as a political c.~.allenge.
.:~.Sil~'ilaIleC CaIll11]Ittcos' Urged i
l~r. Allende, spcal.ing before
a national cangress of the Cen-
tral Labor Union, called for the
organization of "neighborhoad
vigilance committees" to con-
trol _supplies and prices iii
.stores and ather private out-
lets.
Union )3cieaates Clrcer
Dr. Allende said that the sched-
iulcd assembly of the Christian
Democratic opposition at the
National Stadium next weep
would be permitted to take
place, but that the Government
would. put "600,000 people in
the sti?ects that day."
This appeared to reflect the
continent by Premier h'idel Cas-
tro of Cuba here. last week?that
the Chilean revolut.iona.ry proc-
ess sho~vcd `vealcness in the
"organization and mobilization
of the ri:asses." the "reaction-
aries" appeared better organ-
ized than the "papular forces,"
~Mr. Castro said.
The Communist party news-
paper, Ei Siglo, said editorially
today that the women's march
hacl been organized and financed
by the United States Central
Intelligence Agency.
Dr. Allendc's speech was
v
miliiant, but he stopped short
of advocat9ng violaucc. At one,
point, when he referred to th`
opposition, cries of "Kill them"
37te ccononric difficulties! came from the gallery.
that have arisen. since Pr: AI-'~ "No, we are not going to ):ill
lencle took office in November,: them," Dr. Allende said. "That
? is.what they want, a martyr; so
1cJ70, brought tlrc suspension' that they can unleash abroad-
of all foreign-eschaugc trans- b
artne
S
i
A
'
y
p
r
p
ro
gnew
s welcome mat could be withdrawn at any time.
.waywa%'~d serve in a celebrated
Washington t
i
h
.
enn
s matc
"several years ago.
The 3G-year-?old Blatchford. weathered that indignity
d
This is, one iiasiant:e i?t which, the irarct fi~?ures have
-responcatd to th4 soft {l,eori~ing aiwut improving and
updating. b'vherc t}ie Peace Corps hid been steadily de-
ciinin in, both .applications and selected volunteers from
,.?a.peak of more than 10,000 five years ago, this trend has
-nbiv .~eec~. reversed. ..
' -Applications jur7iped from 19,000 during the period
' September, 19G9, to August, ] 9'I0, io ?G,5UU in the same
12-month period just ended. As of last month, there
`were 8?13 volunteers in 5G countries around the world.
No one is doing any real ittb-thumping about this
state of aff'ait:s. For Peace Corlys officials are anxious to
maintain a low. posture around the ~vorlcl, free from all
the bravado and braggadocio associated v~ith the venture
10 yc~trs ago. ,
Pl?t the organization is demonstrating more durability
? there than many air American corporation, such as Ara-
d
'
. Gon
a. Copper, It
s proved itself suFiciently so that it
;an
has gone on to breathe new life into the volunteer
n'
wo
t sink or? swim simply on the future vaon-lost record
;organization which riiany,people were beginning to.,view - of Chile's national basketball team.
as.an idea whose time had come--anti gone.
? Blatchforci's contribution has been to set the Peace } ~ Crocker , 5'ytoz~ is assistant t~ra~aa~iiig editor _of the
Corps in some notable "new directions." Contrary to ~ dlorning Globe.
Sargent Shrive??'s Corps of the early 'GOs, featuring pha-~ ~ ' '
lanxes of Ivy-r-.ducateci generalists floating the bacl.wa~ers ?
~'of the Nile or the An~aron orx a poslgraclttate period
;abroad, the ..emphasis today is on experienced Iuofes-
`sionals fulfilling specific artd often technical functions. _
t The Peace Corps-henceforth. to be latown as Action: ?
? for its recent fusion with t(te domestic vcr?si.otr Vista--
is expcrir7lentinf; with all manner of volunteer service '
:-arid servants now. 'I'h.is?iricltzcles niarriccl. couples serving '
as a team, and persons specially pt?epai?ed through sub-
.= sidized ciiurrition at selected ?cc,lleges (inc]uding the Unit- ?
~versity'oi?Massacliusetts) fora ear f?r-service dom
' tically ati'cr gfl0 ~'?~di~~o~'ol~e~@a&?e~,2.000/0%16 : CIA-RDP80-016018000400270001-1
Cfne place where this is especiall
s
is Chil
?l
 ~~
t~as:-rpp~,c~?o~~ ros'i'
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J3U1~:NUS AIItFS---Pablo: IIe lies ?itublishecl more
ATeruda teas the Comlrlunist. ,than 3UU 11%oks of poetry,
'party candidate for president most of therd trallslatcd? into
of .Chile last yeal?, but not most lallsuagcs. Among the
- Better 1>not,'n ;.ire "Ttt'euty
even 'Chilc,an conservatives .Love Pocnls a.ucl a Song of
.would consider that? venture Despair," "1?esidence on
unseemly far file nation's 7;artll," "C:cr,eral Cal,to"'
`torenlc,st poet..' and "Une Ilunih?ed Love.
Sonnets."
~ 11'tosC of Lafiu America's
literary greats have played 1N llIaICA'f1NCi "these
at politics, and r,nytvay, Ner- misnamed sonr_ets" to llatil-
cle Urrutia, Neruda said he
ucla kept his major emphasis Dept thiltl:in;; of hots "`I`lle
,on his art. So Chile~uls were pacts of all time pre+liared
sure it t= as only a matter of rhymes. that sottl'ided ]ilcc
Lilne ullt.il the lifelonb Cum- ? ?silver, cr~'stal or cannonfire.
'monist won thc.ilTobcl ]?rize? ], with liluch htuilility, build
'Ibday's Stockholm an-~ .these sannets in v,ood; I
nouncement. proved diem gave them, the sutulci of ibis
right.' ' opaque and p:~.re suhstanc.e
....Chile, lontd and lean and ~'ou al'?d I walking
'Beset by the harshness of t.ln'ough woecls ancl.sar;tis,,
Mature, finds amplest ex- by. last lal:cs, through
pression in its potties and . hundreds of lakitucles, gath-
in its poetry.
UCCASIO\rAIaI~Y the two
mix in the ~ Loquacious pas-
'sions of the hemisphere's
"liveliest Congress, and some
observers feel that such ?
verbal tanUles hone thc'.tal-
ents of the poets.
Jlut the greatest Chilean
poetry is lyric, and the coun-
try's rode but beautiful gc-
Ography 15--aS lIl NCI'Uda'S
case---an ilispiration.
Neruda, G7, is the second
Chilean lyric poet to win the
~Nobei Prize for literature.
? ? ~~hen the late Cxabricla i+~lis-
tral received it in ltt~s;
altb.ouUil swipes at the Noi?tli
.4nlericalls .get big play.
at hunle.
\1'hen t.l,e Popultir LTnity_
coalitiutl that elected Al-'
lende to the l;residcucy last
year was still forming, au~l
Allenc3e's candidacy was not
yet certain, lvTerucla wa5lnit
forth as a po^sible candiciatc~
by the Ca1I11111111tStS t0 llll-~.
provC tl'tell' baI'~ airllll~ pE)Sl-
tion. Ilis Warne teas dropped.
as A1lencle's candidacy grew,
The younger and Iiu,re
radical Corumunisis 'and ro-
cialists of Cliile pick on both
Allende and Neruda as
bein~f rather bourgeois and
archaic, Cecil-traciiticn~lisi,
SO t$E're \1'aS SOIiiC :..
guise in the younger litE~r~
ary set trheu Allende ciicl
lireciscly what Latin presi-
dents have done for the last
li,U years-presented what is,
in effect, the. national liter-
ary prize, the. ambassador-
ship ilI Paris, to the coult-
t.rY's foremost uoet. ?.:
ercEl frame meats of pure
branch, of wood submitted
to the assaults of tvatcr and
v;cather...."
The sotmet.s that fallow
at~e~anyt-bin; but v,noden. ,~
In recent veal's, Neruda
has lived in a large lionle,
'on the rocla of Isla i~Tegi?a;_
}lard by the Pacific Ocean,'
Politically, some of t11e
sharpest; criticism 1`Terttda
has met has come front
those to the left of hire,
In the late 1~GUs he ac-
cepted ati invitation from'
Arthur 11~Iiller to visit the
1'eu Club i n 1\?ety 'York. '1'lic
Socialist 1'ar.ty of 1'residcilt
Salvador Allende---which is
considerably to the left of
Neruda was born in Par- Chile's Colilmunisis-slurred
=ral, a train stop 2U0 miles Ncrucla. for h~ ving consorted
south of Sal.lliago, where leis with CIA-fin..ncecl inlperial-
fathcr was a railroad iris.
.worker, Actually ltis name NERiIDA ONLY partly
was I~TCftali Ricardo Reyes,
but he -took }lis pen name smoothed the fuss by corn-
from a Czech poet of the ing ]some through Cuba. Jlis
? last centnl'Y? . , _ political. writ..ing is~~ ;.not;
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3tI ~ ~9, G32
, Yom. _
STATINTL
l!.z71TUxi : ''
'~Vill.ialn ~ V. ,5hannon's "I-la?,d Iire c;ll
? ~~"r.. Sliannorl is quiie Inistal,.en in Clas'al??
kfyilig Chile with the "ul?delvelo?ecl counu
;:hies." i`Tor 'are its "ciccisiat"!S ltl~th2 hands
`~of. ~, deliiaL;ogtt~ oi` pnlitically in;;:,.p;ri-?
?::ellced arl?ly ofii::ers ~=>ithout clear' lllld^r-
'stan.ding capital iuvestlnelit and balance of
trade."
' 'i`tvo years age the c:ouniry atinrnnlced
Chile. haza~ dous" iri your Oct. ~ is5ua vas
`reasoliabls ancl;..a.fr~.eci wiih I~ol;ert 1~1"c-
,Namat?a's vietifs. .
,- .Certainly ths; tl~~o l~Inel?i.ca.il coppst?
companies .have cause for complaint
against tl?e Chilean governiiient for refuse
ing to liar thelil cash for their e:~:pro~?ric!t-
r ed propet'ties, although the Chileans insist
t'thJnited States
t~~attd its progress and want to adapt. some of
-i.ts better "f~:atures, but they feel. th~~-t they
have a festi~ that we Iiiigllt adopt. They
have 1?a.d since ~.92~ Social Secari.t.y collec?~
{tiklle at age f.0, rl:lenlploymettt insural~c.o,
rneclicat~c~: wl, icil covers childbirth. and all
~~CUStS i)ICh1~lllj; lYt2C?1C'i.lle5. _
'l.'iie; brave Iitt.le dalilocta.tic i'epablic has
a ccnsti.tuticn siliiilar to ours: 1.'hcy have
,,defeated. colxtmullis7u so far, and have
ele~at;:c1 several v~ometi lii~iyors.
' Seal 1 ~eac1.1 t1:.1a. CAT,T,',
a, Clitle tl~i~7 li 5 is I'tlcrii~'t liI';;5;rle?n';~., ,~j2I.
',1t~atiU1' L1,.11C'.33ut?, t'.l;,l 1't? I~'~Ui.3 uC:;lilY',?~ C105:'Y?
i
,"CCUIt(~itl,.C ?1?Ci tf;;.''liiiL'.~11 tl.c^,5 t4'lii3 1~.`stSL` t%Cl'-
It ' l 1 1`~ t (:(;it C~'8ist9, l;o\VevCl'y .
x
~'
 JIf1111VIL
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~ 2 OGT 1971
'E~J~~S?xN~~"C?N, ?4z. 11 - Sr~eukix~g at a news co.~fererice at t~~ti C~ii~ar, Ltn~aassy
hers, Ciucion~ir~ t~~imey~a, CiZil~'s far~ion rr~i-?is~er; sazt? ti1a~ cG~n~~;~s~:ti~~i. t?C1.S.:co~~~:~ ?
ir.~er~s~~, re~:~rFtly naLio~alized try t?ze ~e~ii?e's ~Jni~y ~?~et?t~~t~~~i; of C?iie; wc~ulci riot b~.
. ant~o~tnec;~ tr~~si Cct. ~~. - ?
He also indicated that because mines ~i;ere rationalized 3uly 6.~ ~`otlier %.atin countries were willinu:
in so:n2 cases r,~incs were ;ointly Allende ordered fi3~? million -to erd ,the diplomatic isolation of
owned by the Chilean government ~ ' deducted from. ? -compensation : -Cuba; sus; end,.d by the Orgariza-
and titer i~ean~~cott Corp. this U.S.: paid to Anaconda for its Cha:;ui-~ ` ~tion of American States (OA5),?
conceriz would not h,ve to bear t. e: ~ :mata aad El 5aivador mires, and ~ and thzt ? Cubs might ? send dole-.
'. full deduction based on "excess wG10 .million from ~ compensation: ;gates to ~a .conference of under-:
profits." ~ to Yenrecott for its ?interests :in~ ~ developed countriesinI.irna,Peri~:
Chile's President Salvaz'or A2- . ,the : giant? EI 7'enicate r.~ire; -the Almeyda's .; annou::cement fol-
lende had announced Sept. 7.2 that, iarbest undergrour:d caper: mine. ? , Icti-red reports :that the l~i;.on Ad-
in the compensation for mines. in the world. _ ;ministration vitas ?coasdering i?e-
owned by U.S. finrs, ~77~ million ?' ~Astied how lonJ:he believed the ~ : pr-isals against Chile which would
would be dzducted as excess prof- ' ~ negoiiations over; ~ copper vaould'?: b?corrc a pattern for t;ie ecoao:n-
its .made by the American corn- ' cbnt:nue, Almeyda said; "Throu4h : ? ?1c blac'.imail. ox all ? Latin ~~meri-
? panics since IcJaS, the date set by ..the Autumn." ~ ? : - ~ ? ; ~' - ; ~ ; ~ ; ~ ; ? ; can ?countri?s, a well: us the in-
? the legislation under wlvch ,the ? ? lie also -said Chile b~li~ved that creaseactiv~zation bi t;he C,~A._
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 )'r~',r~.':i:0e'"t`.L G:.`31.~IJ t:~~vl
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(y':y '
?be nlixecl state-p:ivatc. c;lterpriscs and a private.
scc.tar of mcdiuin and small busincssrnc.n,
Alongside tllesocializcd sector, tlicre wot:Id a!so'~'lrnerican and Continental banks, both lined
To achieve this objective the, pro~rarn ca',led
for the establisllmamt of a socialir.ed sector of
the economy that would inch:de the nation's
basic industries, the bank;?~ ,system, large
corporations al;d n;onopolies anti '"all those
' activities vrllich, in ger?eral, condition the eco-
nomic ar;d social devalopincnt of the country.'
. During tl?e precc ing C1?ristiall Deir.ocratic
~d;nir.istrr.tion of )rdt:ardo i rei, tilt present
opposition, lcac'ier, there. vas an increase in
exploitation by foreign capital. $c;wcen 196=1
and J970 the t; tdi'iional oligarchy becsl,,c
siron;;er ar,d a ac`t'?bre.ed of?ambitious enlrcpre-
ncurs closely lin'.;e. ~ to American corporations
began to develop. Fcrcig n irlte.rests created
Chilean subsidiaries that penetrated ail areas of
industry and commerce..
The Popular unity program 'proposed to
brea!: the st.ran~ lt;}loll of the oligarchy and
?oreign capital. 'the pro~,ra;n stated: "The
forces of tha Popular Unity have as their basic
goal replacing the prese;lt economic structure:
and destroyi;:g national and forci~n monopolies
as well as latifundios, to bc~in buildin;; social-
Prerasn 1.'n.rir?,~7 ~ '?
? Sari~Sia~o dc~Chilc
r
Since,. assurnin~; o,fice in.l\o':'~illber 19"/0,
-the CF~itean f;~?vernme.nt of President Sslvaclor
Allende has b::en carryir; .out ft+r-reaching'
domestic economic rcforrns and an anti-i;n-
pcrialist forc.i~n policy-a program which is
apenir,r a new pa ~ro in Ctulcan and Latin
American history. Althot:gh so:71e. lest elements
' haVC Cr]tlCll_CCI t}?C 4;oVe.i'llil?Cllr fOr mGVlilg 100
slowly, all the. democratic forces of tile. country
at;re.c that tllcl'o;;ti!ar t}r.ity ~ovcrnrncrt must
be dcfea?d cc} front threats from the oligarchy
and LJ.S. imperialism. ?
1','hen ~'!llende asstimc?.d"the:presidency, Chile.
was ". .Capitalist COtiat?ry-dCpCildCr?t On 1111pCr1-
alisnl" tvitill "ri national, moaopolisi bour~coisic
fllat was i:lcraasin~ its de;iendei;cc on foreign
capital"--in the words of the Popular unity
pro; ram. .
A
L'y IU,lacio C~ryango
government.
F;;.ro; ri:l lliill J, ~~1 rt C~^.rV2ll l?Uils'~~
Phis remains the basic program.
miners and rnanufacttirers.
which is the biggest in the textile industry, wea?c
.expropriated in Deccrnber. Since: then there.
have been numerous f;ovesn;r.cnt "interve.:?-
tions" in banks and companies t:sin illc~al
practices in production cr tabor relations. The
major part of the texti'.e. indt:shy was."intcr-
vcned" within a few?nioilths.
Allende signed a decree which provided that
workers' rcpr~sentatives and govern:ncnt-ap-
pointed supervisors will equally share the ad-
ministraiion of factories that have been ~"inter-
ver.ec." Present lays allow "intervention" or
corifiscatioll of installations anti, in scrne spe-
cific. cascs,.con?pcllsatec} expropriations.
Ga h?arch 15, the two largest cement fac-
tories, both controlled by forci~;l capital and
1?inked to ,'Harlot?al rnoaopolies, were "inter-
vellcu." The previous rt?Ont}1 t}ac state bou;llt
52~ of t}lc 12CA electronics subsidiary, a
' rontrollin;; interest in the GiI~ 7_ag pt;biishii?
liausc, of~ of the most important nc':vspa;xr
monopolies and tt t2XtilC n711} Of t}iC 1'arllr cl.^.ll.
It also er.propriatcd th;, Paper anti Carton Co.
of t}ic Ale::s:i;ldri ?1?iatte group, headed by.
C\-P7CjtdCnt Tor~O /.le.ssan'dI"1, thi% 1'lghtli'ln??,
candid:,tc in tl:e last alection.
Co~~tir~r rsac;c:,a~~ ~:
The ;Host important step in returiliil~ t}ie
basic resources to the nation was the natior.al-
ization of thc?copper inincs?at the cllci o: 7unc.?
"I'he move has bcc;l re.sistcd from abroad. In
l~~arch, agents of tile. right a,^.i} the CI:'?. com-
proi?liscd Chile's crecltt abroad by mating
fr,~uduicnt copper sa',es to farce pt'ices ~o~'.n in
the world market, The plot ryas uncov,.red but
Ai?1C`,'1Cl:i? co;i;;cr egn?pailics refused to .pay
their SSU inil!i~n debt to the Chilean" roverr,-
rient. Sinn:}tancously, there was .. slow do~;?n
in production at the mines, bitt the ?ror'.an!<
tille:of Cili!i? has hoer, ptutially pure}lased hy.t}ie `
StatC, thCfCbj' reSii'1Ctii?g the powir Of tl?e: 117'111
Two of the lar~cst textile. factories in the Camilics of the oligarchy. The five fol~ci;?;1 bai:ks
Appro~i~c~fF~r"l~~l~'a~~'~b'Q0%~~%'i'~"'.?~lb?~~d"~~I`6~'~f ~'~0~~~0~`~d6~~1''
..
 Approved For Release 2000/08/16 :CIA-RDP80-016018000400270001-1
STATINTL
RICHMOND, VA.
NEWS LEADER
E -- 120, 986
Groucho and E{arl:
.< President Salvador Allende of ,Chile
~3~
;;;lately has been acting as though` the
;,.Marx Brothers were. serving -him as
:~diploniatic advisers. Fie has natic;'.n-_
alized every piece of American prop-
erty in sight, and at the same time.;
accused the United States of packing i
' his country with agents of the CIA.
Now, having made his calc`n'ltons'`
compensating two American mining;
concerns,- comrade Allende has deter-'
- mined that the companies owe Chile
at least $774 million in "excess prof-
itg. ",
What ma}ces that so laughable is
that the holdings of the two firms in-
volved-Anaconda and Kenne-
cott--have a book value. of about .
X500, tnillion. Thus Allende has fig-'
,ured out that even alter taking every-
thing from the companies, Anaconda
,,end Kennecott still .will o~~?e Chile a
;quarter of a billion bucks. Allende
rmay want the Yankees to go home,
~"but Ire also wants them to borrow the
(. money for their plane tickets out:
! The U. S. State and Treasury De-
partments don't find Allende particu-
larly amusing, and presumably will
retaliate. One loan to Chile recently
was held up by the United States, and
6 there niay be more of the same'. It
will have to , be much more of the '
same to keep Allende from continuing
~.to laugh at -the big boy up north: '
~ Comrade Allende seems to relish the ,
combination of Groucho and Karl in
~hismarxism? _;...._ .__,-.-_?
Approved For Release 2000/08/16 :CIA-RDP80-016018000400270001-1
 Approved For Release 2000/08/16 :CIA-RDP80-01601 R
I~~~'$~f1001-1
'MZaMZ, rI,A.
~iERALU
~~~~ 1
M -- 38-0828
S -- d79, p25
~v~rm~r~dit~d'-In C~aile
~~ N(~W and then, the U.S._ Central In- Democrats will be part of the active op-;
-.elligerice Agency bets a-break from the position:
Com.nitzn}sts. A good currant example is That autoinaticalIy (in the eyes of
the wave of political-paranoia tootling up the AI}ende government) brands the
Christian J~emocrats~ and Dr. Frei as se- ;
}n Cliile. ditiotas,-for all crl.tic}sm is so labeled,
(Yes, we iulderstaizd that President . and throws them into the ample laps of
Sah~ador Allende is a Marxist who advo-
cates socialisrrt for Chile but itl this }n-
stance we feel the term .Communist
tnot'e aptly categorizes the paranoia}.
ror instance, the telephone service
has been poor in Chile. Who's to blame?
The CIA. - '
Some sectors of the internltional
press have snored Dr. Allende heavily.
Who's the inspiration? The CIA. And so
+on.
We do not doubt that the CIA has a
full carnplement of operatives in Chile,
with a}1 the appr.opr}ate cloaks, but we
think those fellows are get:tirig too much
credit.
The statement over the weekend by
Dr. Eduardo Frei, former president and
leader in the Christian Democratic
Party, reinforces that view.
the CIA..
The popular grid respected Dr. hrei~~
hardly fits the role of CIA Iap-baby, for ~~
his record establishes hint as a Third ;
World independent, positioned well on
t}ie left.
Chile was following a generally left- .
ward trend some 50 years before Dr. Al-
lende took over. Dr?.. Frei himself started
the land reform and nationalization of
copper companies. The difference is t.h.at
Dr. Frei moved slowly and legally; and
Dr. Allende has stepped up the pace and
moved to~change what is legal.
The Wall Street Journal estimates
that Dr, h'rei reduced the role of the pri-
vate husiuess sector in Chile's gross na-
tional product froth 83 per cent to 69 per'
cent. during his six years in office. After
almost one year, Dr. Allende already has
Dr. Frei, remember, has held his si- ~ reduced it by an estimated ZO per cent.
? lence until. now and the- Christian Demo- Dr. Fret's previous warnings that Dr.
crats have been coolierating with the Al-
lende governmeait. l~7ow that's off. Iie
has accused the Communists of ? assum-
ing control ~ iii t}re ~si~-party coalition
that elected Dr.. Allende. Both he and
the party charge that Cli}le is being
steered into a leftist d}ctatorship. Frvm
here on, they promise,' the Christian
Allende's brand of socialism. cannot be
~irnpased democratically lend extra
Gveight to his latest charge that the die-
tatorship is taking shape.
So it ishardly credible to charge a11~'
these flaps to the hand}work of the CIA,
though that outfit accepts all applause ,
Approved For Release 2000/08/16 :CIA-RDP80-016018000400270001-1
 STATINTL
.~ ... ?. aayt-u u auea uus.ci
Approved For Release ~~($/ CIA-RDP80-016011
T~T:3sFI and Then, the U,S. Central In-
te]lience Anency gets a break from the
Communists. A ^oocl current example is
~Dernocrats i=till be, part of the active op-~
position. : '
Tliat automatically (itt the eves ai'
the wave of political paranoia boiling up ""'' r~itenae government) brands the
in Chile. ~ Christian llamocrats~ and l~r. I~'rei as se-
ditious, for all ~crii:icism is so labeled,
(Yes, weunderstand that Pr~,sident and throws them into the ar~zple laps of
~5alvador.Allende is a iVlarxist who advo- the CIA..
cafes socialism for Chile but in this in- The popular and respected llr. Frei
,stance eve 'feel the term Corurllunist hardly fits the role of CIA lap-baby,-for
snore aptly.~cate;orizcs the paranoia). his record establishes him as a Thirds
. ~ P'or. instance, .the telephone service World independent, positioned well on
has been poor in Chile. Who's to blame? the ]eft.
1'he CIS. .. _ .: Chile vas following a generally Weft-
Some sectors of the international ward trend some ~0 years before Dr. Al-
press have scored Dr. Allende heavily. lencie took over. Dr. I'rei himself started
Who's the inspiration? The CIA. And so the land reform anal- nationalization of
'on. copl7er companies. The cliffereitce is that
We do not doubt that i:he CIA has a Dr. Z'rci moved slowly and legally, ants .
full complement of operatives in Chile, Dr. Allende has.steppeci up the pace and
~vilh all the appropriate cloaks, but time moved to~change what is legal.
.iliirik those fellows are getting too much Tho Wall Street Journal estimates
credit. ~ ~ d that Dr. Frei reduced the role of the pri-
' `the statement over the ~sveel:enci by vate business sector in Chile's gross na-
Dr. Eduardo hrei, former president and iionai product from $3 per cent to 69 ~;er
leader in the Christian Democratic cent Burin; his six years in office. After
Part}~, reinforces that view.. almost one year, Dr. Allende already has
Dr: Frei, remember, has held his si?? reduced it by an estimaled.IO per cent.
tepee until now and the Christian Demo- ~ Dr. Fret's previous tivat:nings that Dr.
ci?ats have t~ecn cooperating with the A1- Allend?"s brand of socialism cannot be
lende government. Nora that's off. Ile imposed democratically lend ~ extra
has accused the Communists of assum- weight to his latest c1~arne -that tIte dic-
ing coritz~ol yin tiie six=party coalifiort tatorship is taking shape.
that elected Dr. Illletrcie. Foth he and 5o it is hr.rdly credible to charge all
the party charge that Chile is being these flaps to the handiwot?1~ of the CIA,
steered into a leftlst dlCtat01'Shlp. X'I'Onl though that outfit accepts all applause
here on} they proniise,~ the Christian as well as criticism in silence.
Approved For Release 2000/08/16 :CIA-RQP80-016018000400270001-1
 ar~L.cTor,:crl~pproved For Release 2000/08/16 :CIA-RDP80
c~o._i , ~aa ~ STATINTL
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