CENTRAL INTELLIGENCE BULLETIN

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79T00975A019400090002-6
Release Decision: 
RIPPUB
Original Classification: 
T
Document Page Count: 
6
Document Creation Date: 
December 14, 2016
Document Release Date: 
June 10, 2003
Sequence Number: 
2
Case Number: 
Publication Date: 
July 3, 1971
Content Type: 
REPORT
File: 
AttachmentSize
PDF icon CIA-RDP79T00975A019400090002-6.pdf84.16 KB
Body: 
Approved For Release 2003/08/08 : CIA-RDP79T00975A019400090002-6 25X1 Top Secret DIRECTORATE OF INTELLIGENCE Central Intelligence Bulletin State Dept. review completed Top Secret C 3 Jul 171 79T00975A019400090002-6 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19400090002-6 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19400090002-6 Approved For Rel 25X1 25X1 3 July 1971 Central Intelligence Bulletin CONTENTS CHILE: The Central Bank's recommendation for an austerity program. (Page 1) 25X1 Approved For F4elease 2003/08/08 : CIA-RDP79T00975A0194000I90002-6 25X1 Approved For Rel CHILE: The Central Bank's recommendation for an austerity program probably will not be adopted by the Allende government. The bank warned in mid-May that foreign exchange reserves may be exhausted by the end'of the year, It recommended that the regime stop deficit spending, raise prices charged by nationalized enterprises, reassure private investors, devalue the escudo to stimulate exports and reduce imports, and let prices for luxury goods rise. The administration, however, intends for the present to continue its expansionary policies, take some remedial action before reserves are ex Chile's consumer spending spree continues un- abated and unemployment in Santiago dropped sharply from eight to five percent between March and June 1971. Industrial production reportedly is approaching capacity levels and will be hard pressed to meet de- mand. As a result, prices are beginning to rise more rapidly despite strict controls and increased imports, but inflation this year is likely to be less than last year. The government's ability to control price increases will depend upon future imports and the expansion of production facilities. 3 Jul 71 The US Embassy believes that Aliencle will Central Intelligence Bulletin 25X1 25X1 25X1 25X1 Approved For R4ease 2003/08/08 : CIA-RDP79T00975A019400090002-6 I 25X1 25X1 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19400090002-6 Next 6 Page(s) In Document Exempt Approved For Release 2003/08/08 : CIA-RDP79T00975AO19400090002-6 Approved For Release 2003/08/08 : CIA-RDP79T00975AO19400090002-6 Top Secret Top Secret Approved For Release 2003/08/08 : CIA-RDP79T00975AO19400090002-6