GENERAL BUSINESS CONDITIONS/FOREIGN EXCHANGE/FOREIGN TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00423R000400900002-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: December 3, 1998
• Sequence Number: 2
• Publication Date: April 1, 1953
• Content Type: REPORT

Approved For ReleasO
CouOtry: Chile
sect: General Business Conditions/Foreign Exchange/Foreign Trade
Place Acquired by Source:
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Date Acquired by Source 25X1 X6 This uneE3aRudc fvr
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Date of Information
UO 52 - Mar 53 your analysis. It ?~" ^S CC~t r: suss j-
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Source Description:
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1. "General Business Conditions: Production has increased generally on a
seasonal basis with the end of the summer vacation period. On the whole,
sales and collections are reported good with the exception of construction
materials, sales of which have dropped substantially in recent months L959,
reflecting government announcements of price reductions on such materials
and restrictions on residential building. Primarily because of the paying
out of government funds, assisted by Central Bank financing, bank credit has
been a little easier than in previous months. Official statistics show that
the industrial production index for the full- _year 1952 was 212.8 compared
with 193.4 for 1951 (base year 1936/38:-100). The December 1952 index was
223 compared with 219.4 for December 1951.
2. "Foreign Exchange: Supplementing the publication of the exchange budget for
1.59 3, Consejo Nacional de Comercio Exterior issued a detailed list of
authorized and prohibited imports. Imports are divided into two main groups -
Group I at the free banking rate, and Group II at the preferential rate. Im-
port permits are required for both groups.
The definitive figure for merchandise imports is now budgeted for a
total of (Ug$399,121,317 based as follows:
Group I Free Exchange:
US$ items 76,235,000
Items in other currencies-
equiv. in US$ 101,027,600
Group II Preferential Exchange at
Ps.31 and 60 per dollar:
US$ items 158,729,385
Items in other currencies-
equiv. in US$ 63,129,332
"During March
95, the volume of exchange transactions in free dollars in
the banks decreased substantially because of the smni1. number of import licenses
issued in this group in previous months, which caused a reduction in incoming
shipments. During the lat part of March, however, followingMIR
Approved For Release i9 9 109/1 I .r DP83-004238000
/US 0 NLY
83-00423 R000400900002-6
 Approved For Release 1999 P83-00423R000400900002-6
sour , Inform
National Board of Foreign Trade ruling that free exchange could be covered
immediately in order to prepay commercial credits, transactions in this class
of exchange increased. Free exchange is still in abundant supply with.the
rate stable at 110 pesos per dollar. With the exchange budget operating at
an accelerated pace, the Board made more numerous allotments of preferential
exchange at the 60 peso rate.
"The demand increased for free dollars in the authorized brokers' market in
which the rate moved between 132 and 11+5, closing on 19 March at 1140 pesos
per dollar.
"Demand for free sterling in the banks is still in excess of the available
supply and the rate is now 338/31+0 compared with 336 the previous month. Free
sterling in the brokers' market has moved up to 385 compared with 355/36o a
month ago.
3. "Forei Trade: The December 1952 foreign trade balance was favorable by
20.2 miliondollars, bringing the favorable balance for the entire year 1952
to 82.3 million dollars compared with 43-5 million dollars in 1951. Exports
in 1952 were 411 million dollars and imports 359 million dollars compared with
362 million dollars and 319 million dollars respectively for the full year 1951.
"Under the special powers granted by Law 11.151 of 5 February, the President
of the Republic created a new executive department entitled Ministry of Mines
to handle matters related with the growth and development of mining and
petroleum production.
"A new import regulation requires that shipment must be made within 90 days
of approval of the import permit if granted on the basis of payment against
documents in Chile. When the permit indicates that the import is to come in on
a letter of credit basis, the commercial credit must be opened within 20 days
of approval of the permit:'
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83-00423 R000400900002-6