Document Type: 
Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
November 9, 2016
Document Release Date: 
February 2, 1999
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Case Number: 
Publication Date: 
June 1, 1953
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PDF icon CIA-RDP83-00423R000600210001-1.pdf123.54 KB
#P proved Fort- Release 1999/09/I. 004FC'~Q9 X91 - 3" ' ti 1WT Pi Lit; A,; COUNTRY: Chile SUBJECT: Political and Economic Outlook PLACE ACQUIRED DATE ACQUIRED DATE OF INFO: May 52 - Jun 53 25X1A6a 25X1X6 25X1X6 Although the Ibanez regime is still without a majority in the Chilean congress, I do not look for any major upheaval in Chilean politics. Opposition to the government is so widely scattered in small olitical parties of divergent views that there is little or no chance of the formation of an effective opposition bloc. Should a revolt be attempted by one of the opposition parties, I am con- fident that Ibanez, who has strong support from the military, could crush it without difficulty. I would not be surprised to see him use an attempted revolt as an excuse for grabbing off dictatorial powers. The Chilean man-in-the-street is not nearly as enthusiastic about the Ibanez regime as he was in its early days, because the regime has failed to fulifill its promises of economic betterment for the masses, There is a good deal of anti-US sentiment among the common people) but I doubt that it is Communist inspired, nor do I feel that the masses are particularly interested in a Communistic form of society. Anti-US feeling stems rather from a sense of inferiority and economic dependence on the US. There could well be a shift to the left in Chilean political sentiment, but, in my opinion, it will not go very far left of center. 25X1A2g c"eve"?2?t06' ins0riM.to US ti:ca Is an) s cr t"e possible interest of 25X1 X6 YOU ana13It Jc',s net wrrent dissemi- nation by report. Approved For Release 1999/09/10 : CIA-RDP83-00423ROO0600210001-1 ? Approved For Release 1999/09/10: CIA-RDP83-1300600210001-1 w. r k , 3. Chile needs roughly US $250,000,000 to develop its economy. Ibanez and the men around him know that the only possible source for such a substantial amount of capital is the US. Accordingly, it is doubtful that they will do anything to jeopardize their reasonably good relations with the US. Economically, Chile's needs are roughly as follows, in order of priority: (a) Better communications, particularly roads; many new routes are needed, as well as improvement and modernization of existing roads. (b) Greater electric power capacity. (c) Increased coal production. Chile now imports about 500,000 tons of coal annually. (d) Irrigation projects which would permit greater food production. 4. Chile's economy badly needs a good land reform program. which will be very difficult to put througi. Much o"Fie land in the large "fundos" lies idle, because the estate owners lack the initiative to cultivate it. As a result, Chile has to spend precious foreign exchange to import food products. 5. Conditions at the CAP steel plant are fairly good. Rolled steel production is at an annual rate of around 200,000 tons, of which about 30% must be marketed abroad. At present gone l95 7,'rolled steel is being stocked in warehouses due to a slackening of export demand. Argentina would bud as much steel yQ-arA_Wtlling ng to ship but lacks the exchange to pay _. There have been onlFin inor -1-a- `""rciu"'t 7at ~e CAP plant so far. The Chilean steelworkers have shown no 25X1X6 particular inclination to join the National Labor Confederation which receives strong support from the Communists. ~( ## 25X1A2g On US Offlcf201 /s ern , `.4ef iitl4 Pi a,^ iii' a !`~je Ss~~r y-:eN~ r?- W ~Yi~t~v:i WPM Approved For Release 1999/09/10 : CIA-RDP83-00423R000600210001-1