CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A013700060002-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: May 23, 2003
• Sequence Number: 2
• Publication Date: May 13, 1969
• Content Type: REPORT

Approved For Relea e 2003/06/11: CIA-RDP79T00975A0tAM00W00 secret
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
Top Secret
X197"
13 May 1969
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13 May
Central Intelligence Bulletin
CONTENTS
Chile: Proposed[ revisions in "Chileanization" agree-
ments would sharply cut US copper company earnings.
(Page 3)
USSR-Pakistan: Air defense aid (Page 7)
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Chile: The government has proposed major re-
visions in the "Chileanization" a reements it signed
with US copper companies in 196.
The -proposal involves a complex formula under
which company profits would be tied to production
costs and the government would increase its share
in the "surplus profits" being earned under pre-
vailing high copper prices. One US company estimates
that its income might be cut by more than half under
the new arrangement. If the companies do not agree
to these changes, the Frei. administration threate s
to introduce lecrislation to this effect in congress.
Under the "Chileanization" agreements the gov-
ernment acquired shares in the companies, and re-
duced their taxes substantially in return for a
promise to put about $500 million into new invest-
ments in Chile. The world price of copper has been
high since 1967, and both the government and the
companies have made large windfall profits. The
government has had budgetary difficulties, however,
and many politicians are looking to the copper com-
panies for additional income.
Frei may hope that by getting more money from
the companies he will be able to head off increas-
ing pressure for complete nationalization. Frei's
domestic position is generally weakening, and his
Christian Democratic Party is being subjected to
serious strains. Leaders of the party's leftist
wing and of its youth group resigned last week,
stating they planned to begin a "movement" for
"popular unity" that would be open to Marxists.
This action is symptomatic of the disarray among
the Christian Democrats, and an issue like revision
of the copper agreements gives some promise of
helping them rah
13 May 69 Central Intelligence Bulletin
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NOTES
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Pakistani Air Force in developing
Pakistani air defenses in a hitherto-neglected1area,lCil
If an early warning system is being developed, the
USSR probably agreed to suppl th' e ui ment under
the arms a reement of Jul 1'68
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e assisting
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