Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
November 9, 2016
Document Release Date: 
March 27, 1999
Sequence Number: 
Case Number: 
Publication Date: 
June 20, 1950
Content Type: 
PDF icon CIA-RDP82-00457R005000550003-7.pdf132.86 KB
~.0LASSIF ICAT1O;; 25X1A Approved For ReI TEF 11999 'H911.M-1?C At M2-00451 41-2 INFORMATION REPORT CD No. COUNTRY Chile DATE DISTR, 20 JUN 50 SUBJECT Communist Stand on Vial Economic Bill NO. OF PAGES 2 CON FIDENTI 4L PLACE 25X1 A NO. OF ENCLS. ACQUIRED ~ (LISTED BELOW) DATE OF - _. - . - - SUPPLEMENT TO REPORT NO. The following report traces the position which the Communist Party of Chile (PCCh) took concerning the now economic bill proposed by Finance Minister Caries Vial Espantoso, Between 10 and 12 May negotiations took place between the Chilean government and the PCChr, The government, anticipating a close vote in the House of Deputies on Vial ~ls economic bill, established contact with the Izquierda Democratica de Chile (IDECh), the Communist-dominated political coalition, in order to secure DDECh votes, This contact was made between Fernando Maira Castellon, Radical Deputy, and Humberto Martonez Quezada, IDECh Deputy? 2.- In return for the two II)ECh votes in favor of the Vial bill, the IDECh demanded the following concessions from the governmment: the repeal of the anti-Communist law of Defense of Democracy; the resignation of the Winister of Labor, Ramon Plaza Monreal, and the immediate solution by the goverment of the pending labor strikes.. The ILJECh also attempted to convince the Popular Socialist Party to make the same demands on the government in return for their six votes in the House of Deputies,, The Central Committee of the Popular Socialist Party, however, would not accept this proposition and decided to vote for the governnent0 s bill edi thout making any conditions, This situation xeakened the IDEChrs position, but its two votes were still considered of such importance that President Gonzalez Videla instructed Fernando Eaira to obtain. at the least, the IDEChasa agreement to abstain from the voting This agreement was reached on the basin of the government's promises to refrain from exercising a^tivaly its powers under the Defense of Democracy Law, and to study the possibility of Including in the Cabinet a representative of the workers q unions The IDECh failure to vote for the Vial bill caused a violent attack on the Communists. The press attack on them was reportedly ordered by the govern- rent, The Junta Nacional do .anpleados de Chile (JUNECh ), at a meeting on 11 May,, registered a strong criticism or the Cor unists ? failure to favor the Employees' wage increases through the IDECh votes. Faced with this adverse criticism, the Political Commission of the PCCh held a meeting to This document Is hereby regraded to CONFIDENTIAL in accordance with the letter of 16 Ociober 1978 from the Director of Central Intelligence to the Archivist of the United States. Approved F biia se l 9 /09 : CIA-R COWIUI TI&L Approved For Release 1999/99/09 : CIA-RDP82-0045716666005 ENTIAL discuss the PartyB position, It was decided that, because of the violent opposition to the Communist stand on the Vial bill, the Political Commission would retract its fornier position and would back the bill in subsequent vot' :ing in the Senate Among those attending the meeting of the Political Commission were reported to be: Iiguel Concha Quezada, Rene Frias, Carlos Rosales Gutierrez, Volodia Teitelboim Volosky, Luis Reinoso Alvarez, Luis Valenzuela, Carlos Contreras Labarca, Jorge Giles Pizarro, Santiago Aguirre, and Pedro Diaz Iturrietac. Approved For Release 1999/09/09 : CIA-RDP82-004