CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A021900030002-4
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 7
• Document Creation Date: December 15, 2016
• Document Release Date: March 3, 2004
• Sequence Number: 2
• Publication Date: May 13, 1972
• Content Type: REPORT

Approved For Release 2004/05/05 : CIA-RDP79T00975A0219 Secret
DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
State Department review completed
Top Secret
T A0
13 XA,
ARCHIVAL RECORD May :I 972
I PLEASE RETURN TO
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13 May 1972
Central Intelligence Bulletin
CONTENTS
CHILE: Allende hancin his tactics on expro-
pr- ting ITT.
Page 8)
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*CHILE: PRESIDENT ALLENDE HAS CHANGED HIS
GAME PLAN FOR EXPROPRIATING ITT INTERESTS, APPAR-
ENTLY UNDER PRESSURE FROM EXTREMISTS IN HIS COALI--
TION.
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ALLENDE RECENTLY HAD REASSURED US OFFICIALS
THAT WAYS COULD BE FOUND TO HANDLE THE ITT CASE
REASONABLY. HE HAD ANNOUNCED THAT HE WOULD SEND A
BILL PROVIDING FOR EXPROPRIATION OF THE COMPANYOS
CHILEAN INTERESTS TO CONGRESS ON 5 MAY. AFTER HE
FAILED TO DO SO, IT BECAME APPARENT THAT PROLONGED
MEETINGS ON THE SUBJECT WERE BEING HELD BY COALI-
TION LEADERS WHO COULD NOT SETTLE ON A COMMON POL-
ICY. ONE OF THE STRONGEST ARGUMENTS AGAINST AL-
LENDEOS "REASONABLENESS" BY EXTREMIST SPOKESMEN
IS THAT IT HAS NOT RESULTED IN THE EXTERNAL FINAN-
CIAL CREDITS THAT HE CLAIMS SUCH A POLICY WOULD
YIELD. THE TENOR OF THE DISCUSSIONS WAS REFLECTED
IN ECONOMY MINISTER VUSKOVICOS ATTACK ON 10 MAY
AGAINST US 'OOBSTRUCTIONISMOO IN INTERNATIONAL LEND- 25X1
ING AGENCIES WI-IERE CHILE HAS REQUESTS PENDING.
ON 11 MAY ALLENDE TOLD THE US AMBANNAPON It HAV -
DECIDED THAT THE ITT EXPROPRIATION REQUIRED A CON-
STITUTIONAL AMENDMENT RATHER THAN SIMPLE LEGISLA-
TION AND THAT THIS WOULD PROVIDE FOR A TRIBUNAL
SIMILAR TO THE ON INCLUDED IN THE COPPER NATIONAL-
IZATION AMENDMENT YESTERDAY HE SUBMITTED THE
PROPOSED AMENDMENT TO CONGRESS. LIKE THE ONE PASSED
LAST YEAR TO NATIONALIZE US COPPER INTERESTS, THIS
AMENDMENT PROVIDES FOR SUBTRACTING 0rEXCESS PROFITS'
FROM THE VALUE OF COMPANY ASSETS IN ETERMINING COM-
PENSATION TO BE PAID TO HE COMPANY.j HE ALSO
c PROPOSED CANCELLATION OF ITT'S TELEPHONE CONCESSION
ON THE GROUND THAT ITS ERMS HAVE BEEN VIOLATED. DE-
SPITE HIS ATTEMPTS TO REASSURE THE AMBASSADOR AND
THE VAGUENESS OF DETAILS ON THE ACTUAL PLANS, AL-
LENDE APPEARED TO RECOGNIZE THAT AN APPROACH SO
SIMILAR TO THE COPPER NATIONALIZATION COULD RAISE
SERIOUS PROBLEMS IN RELATIONS WITH THE US.
THIS IS NOT THE FIRST TIME ALLENDE HAS RE-
TREATED UNDER RADICAL PRESSURE. EXACTLY A YEAR
AGO, EXTREMIST OFFICIALS FORCED HIM TO BACK DOWN
13 May 72
Central Intelligence Bulletin
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AT THE LAST MINUTE FROM THE AGREEMENT HE HAD REACHED
PERSONALLY WITH THE CERRO CORPORATION. THERE HAVE
BEEN SEVERAL SIMILAR REVERSALS SINCE THEN. NOW,
WITH JACK ANDERSON'S ALLEGATIONS THAT ITT HAS MED-
DLED IN INTERNAL CHILEAN AFFAIRS AND WITH A FRENCH
JOURNALIST'S ALLEGATIONS OF ITT'S SHORTCHANGING
CHILE IN ITS TELEPHONE OPERATIONS, THE EXTREMISTS
HAVE STRONG ARGUMENTS ON THEIR SIDE. IN ADDITION,
THE COMMUNISTS, WHO HAVE SUPPORTED A CAUTIOUS LINE
IN THE PAST, ARE SHOWING SIGNS OF CONCLUDING THAT
MORE RADICAL POLICIES ARE INESCAPABLE IF THE POPULAR
UNITY GOVERNMENT IS TO CONSOLIDATE ITS POWER IN THE
FACE OF GROWING OPPOSITION--F
*Because of the shortage of time for preparation of this item, the analytic
interpretation presented here has been produced by the Central Intelli-
gence Agency without the participation of the Defense Intelligence
Agency, Department of Defense.
13 May 72
Central Intelligence Bulletin 9
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