Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
November 17, 2016
Document Release Date: 
August 7, 2000
Sequence Number: 
Case Number: 
Publication Date: 
December 31, 1971
Content Type: 
PDF icon CIA-RDP80-01601R000400270001-1.pdf8.2 MB
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. _ Approved For Release 2000/08/16 :CIA-RDP80-016018000400270001-1 STATINTL Ciivi.ii+i~~~j~- Release 2000/08/16 :CIA-RDP80-01601 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 '>~~ Approved For Release 2000: ~~~-RDP80-01601 R 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 Approved For Release 2000/08/16 :CIA-RDP80-016018000400270001-1 Approved For Release 2(~~.~/~:as~~~i~-RDP80-01601 R 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' Approved For Release 200~/~8%16 S CIA-RDP80 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; Approved For Release 2000/08/16 :CIA-RDP80-016018000400270001-1 .lNt)EPI?P~~~V@C~J~ar Release 2000/08/16 :CIA-RDP80-01601 R00 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 Approved For Release 2000/08/~~zr ~~~'~~P80-016 ~- ~ 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._ Approved For Release 2000/08/16 :CIA-RDP80-016018000400270001-1 )'r~',r~.':i:0e'"t`.L G:.`31.~IJ t:~~vl 'Approved For Release 2000/08/16 :CIA-RDP80-01601R (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 Iiy 1rtP11~ 1)1~T ~,t l (t/3, ~z S_A 'ri , ,., i .::,., a: ,, S apt ! , .!ca JTAV>?.1`.fi _ itgiv?t~, at:"e:i:.. ~7Cif; i J?:.8, .:'2%1':i }3,;i1 C711Ivo 'S1i'.t7)httl;, ;f38.G'`: t0 Atll?2iw hZl'i~, ')~}l:.!1 i0 i1.111Li'J.C'a11 I)(>' Ilse. . ~L'[?CrP 7. , TUl 1' a^.t C , 111?.. ??;iCt~;l 5':1Gt: T" O,1C i l,:_L C}~2; ~ \,' :1 i'...10~ C'f IL::~'CC (l0 i=itJ l1t;7)C+:i CLrC: ?i! ' I71 ;1! LS. It 15 tii , r:~ N.r-)xl;Y S I tll,ll C1( .S 1~ C _,t' ~~l> 11 S'ri ]~ It'.rJ r~ li C ~llU :1 ~~0;1t11~ 111 t.:..?t ?:?~i'i'J ~tllC' ~ 1[t. lll\'0~' C rt?t 111 '1 1 1 it 1,1 ~ t(;I 1 1)d ~~ 1 .JC- lfifil I~a~> Gi I',,;; rtl'rri~;lr);~ c.:;7: , a i ? t!le Jt ~'r.t ,.1 ~_ cd-? aRd tLc,il C~i1C. .;t;" '!~ !1' lt7 ;5 p r 1.15 ,I~ill'Il',I! ] !1 11:: )'i {,~ ~IEI \ ~ r} !~ lC '".)Jl , is f(%1 t. tl'c Jlt'l] 1'. I' } l.t ~ C.-?' Oi E }'2 111'11 S'. 110 1,~~ T ((1 t%110 C } iIG's x..1,15 t(ar..u..iu}..., d~':l~i , t) ~ , Cl l 's tlJ ncra. Ci c'il. t2 C..;. 5 '-:C:,(i is-:' ~~, ~?_.~ Ill C,,,lfltic?es t!lc'.~ad Gn~ tl.. J:)~it:e in- terna.avl :~l pale. ;s,rfl I're~i, d.e;it i\i;?tuii'S ]~'