US FINANCIAL STAKE IN CHILE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001600030141-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 31
• Document Creation Date: December 22, 2016
• Document Release Date: October 28, 2011
• Sequence Number: 141
• Publication Date: September 1, 1970
• Content Type: IM

Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
7o-/qQ
0~), 5, /j,~
Confiderrdel
Intelligence Memorandum
Confidential
ER IM 70-140
September 1970
Copy No. 64
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
WARNING
This document contains information affecting the national
defense of the United States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
GROUP 1
t,dud.d horn oulon,od<
down] .ding and
dndoeirk.lion
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
CONFIDENTIAL
Foreword
The listing at the end of this memorandum of
US firms, subsidiaries, and affiliates in Chile
is UNCLASSIFIED and may be removed for more con-
venient use.
- iii -
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
0 CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY
Directorate of snteiligen%:e
September 1970
US Financial Stake In Chile
Introduction
Chances are good that t!arxist candidate Salvador
Allende will assume the Chilean presidency on
4 November. Allende has roundly c;ondcmned the role
of foreign capital in Chile and pledged to nationalize
large segments of the economy, including most if not
all enterprises with foreign ownership. He also has
stated that foreign aid agreements with the United
States will be denounced and that Chile will "take as
long as possible" to pay off existing debts. This
memorandum assesses the financial exposure of the US
private sector and the US government in Chile.
US Private Sector Assets in Chile
1. At a minimum, US private assets in Chile
total about $1.5 billion. Of this amount, we esti-
mate the book value of US direct investments* at
$800 million. The replacement or market value of
these investments, while difficult to estimate, is
obviously considerably higher. The remaining US
private assets include the following:
* The amortized value of company equity investments
and direct parent company bane to Chilean eubsid-
iariee.
Note: This memorandum was produced solely by CIA.
It was prepared by the Office of Economic Research
and was coordinated with the Office of Current
InteZZigence and the Office of National Estimates.
CONFIDENTIAL
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
M CONFIDENTIAL
$255 million in Chilean government
notes issued to US companies as
partial compensation for past
nationalizations;;
$45 millio;i in estimated US holdings
of publicly issued Chilean bonds;
$105 million in long-term loans to
local enterprises and institutions;
$250 million in estimated short-term
loans,mainly to finance foreign
trade;
$20 million in corporate short-term
financing of dealer stocks.
2. During the past two years the book value of
direct investment in-Chile has declined sharply,
despite, the massive copper expansion program
nearing completion, and it now represents only
about 6% of total, US investment in Latin America.
;Direct investment fell from $964 million at the
.end of 1968 to $846 million at the end of 1969,
largely because Anaconda was forced to sell Chile
51% of its two producing mines for $175 million.
The $80 million sale of Boise Cascade Corporation's
interest in the Chilean Electric Power Company in
August 1970 reduced the total further. In both
cases, the US firms received long-term Chilean
government notes as payment. Kennecott Copper
Corporation was similarly reimbursed when it sold
a 51% interest in its large El Teniente mine for
$85.million,in 1967. As she Chilean government
paid off these notes, Kennecott enlarged its direct
investment by;reioaning the funds to the new joint
.company, as previously agreed.
3. Considerably more than half of US direct
investment is concentrated in mining and smelting,
especially copper mines qnd processing facilities
(see the table). Investment in public utilities,
mainly the telephone and telegraph systems, is
also substantial. Although investment in manu-
facturing and trade is relatively small, numerous
companies have subsidiaries, branches, or sales
offices in Chile (see:,the attached unclassified
listing).
- 2 -
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
0 CONFIDENTIAL
Chile: Book Value of Direct US Investment
Million US $
End of
End of
CIA Estimate,
September
1968
1969
1970
Mining and smelting
586
452
480
Manufacturing
68
65
65
Trade
39
41
40
Communications,
electric power,
and other
270
288
215
US Government Guaranties
4. If Chile expropriates without adequate
compensation, blocks repatriation of profits and
capital, and defaults on loans, US firms would be
able to draw on government credit and investment
guaranties to cover an important share of their
losses. The Export-Import Bank has insured $64
million in export credit financing, mainly long-
term. More important, investors in Chile have
been among the leading participants in the Specific
Risk Investment Guaranty Program, administered by
the Agency for International Development (AID).
5. The Investment Guaranty Program, as presently
constituted, was initiated in the early 1960s tc
encourage direct private investment in less developed
areas by insuring investors against losses from war
and insurrection, expropriation without adequate
and timely compensation, or inconvertibility of local
currency holdings. Only new investments are covered,
and AID establishes a maximum coverage based on the
project's estimated cost plus anticipated retained
earnings during an agreed-upon period. Within this
limit, the investor may select either stand-by or
current coverage against one or all specified risks.
Only current coverage provides immediate protection;
stand-by coverage, which costs considerably less,
merely gives the investor an option to convert to
current coverage as investment proceeds. This
option can be exercised only once a year -- on the
anniversary of the policy date.
- 3 -
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
CONFIDENTIAL
6. As of 10 September 1970, US investors in
Chile had current coverage against expropriation
totaling $293 million and stand-by coverage for an
additional $355 million (see the Appendix)'. A sub-
stantial portion -- $235 million -- of this stand-by
total represents the maximum coverage on two Anaconda
projects whose eligibility is now in dispute, however.
Although most investment expenditures on these
projects already have been made and the company has
opted for current coverage, full conversion of
Anaconda's stand-by coverage is unlikely.* The
remaining $120 million in stand-by coverage repre-
sents investments US companies had planned to make.
These firms are not expecting to invest more than
$20 million to $30 million in the next year, how-
ever, and thus in the coming months will opt for
additional current coverage only on this amount.
Current protection against the risk of inconver=
tible currency amounts to only $51 million, but an
additional $645 million is on stand-by, including
$235 million in coverage that Anaconda claims is
still valid. Although US firms can convert their
stand-by coverage to current coverage against ex-
propriation only before their assets are affected,
they may shift from stand-by to current coverage
for protection against inconvertibility after the
local government has taken action.
Anaconda a year ago agreed under severe pressure
to sell its-major properties -- the Chuquicamata
and EZ Salvador mines -- to the Chilean government,
and the issue between AID and the company on these
properties' eligibility for coverage is still un-
resolved. Anaconda temporarily retains a 49% equity
in these properties but is committed to relinquishing
it. Under the 1969 agreement, which Allende says he
will not honor, Anaconda will keep this equity until
sometime after 1 January 1973, when the Chilean
government would buy out its remaining shares.
Actual investment in these properties that is subject
to coverage under the guaranty program totals $186
million; the company has not accumulated any part of
the $49 million in retained earnings allowed in the
original AID-Anaconda contract. It is possible that
only $91 million, or 49% of the investment, will be
judged eligible for guaranty coverage.
- d -
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
CONFIDENTIAL
potential Private Loss
7. If Allende becomes Chile's president on
4 November and promptly expropriates all US proper-
ties and repudiates financial claims, American
business could suffer a net loss of up to $1 bil-
lion. This sum does not include the difference
between the $800 million book value of direct
investment and the likely market value of these
assets. The $1 billion estimate assumes that:
The Anaconda propertia)s partly
nationalized by Chile in 1969 will be
ruled ineligible for coverage under
the Investment Guaranty Program; and
US financial instituti',ns and in-
dustri.'a corporations will riot be able
to reduce their short-term loans by
more than 50% before default.
The ingredients of this worst-case estimate are
summarized as follows:
Million U'< S
Direct investment (book value) 800
Chilean government notes from
past nationalisatio?.1a 255
Less estimated. expropriation
coverage under Investment
Guaranty Program
Net loss
755
Long-term loans
105
Less Export-Import Be '
and insurance
guaranties
62
Net lose
43
Short-term credits
270
Less estimated reduction before
default
135
Net lose
135
Chilean government bonds
45
Less estimated reduction before
default
Negl.
Net loss
Totat potential toss
- 5 -
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
CONFIDENTIAL
8, Under some circumstances, the loss to the
US private sector would be less than the estimate
above. Even if Allende exproprated US firms
fairly early in his administration, the net private
loss would be reduced by somewhere between $91 mil-
lion and $186 million if Anaconda received a favor-
able decision on the investment guaranty gpestion.
In the unlikely event that Allende would permit
repaying of private US loans to help maintain Chile's
worldwide credit standing and would provide partial
compensation for nationalized properties, private
losses would be further reduced.
US Government's Exposure to Loss
9. Because Chile has been one of Latin America's
main aid recipients, it has a substantial debt to
the US government. On 30 June 1970, outstanding
obligations (disbursements less repayments) totaled
$900 mil".ion. More than half the debt arose from
AID loans, mainly with long maturities and 1,c~:: .
interest rates. Loans from the Export-Impo;:t Bank
also were large, as the following tabulation of
balances outstanding shows:
Million US $
AID loans
525.7
Repayable in dollars
490.4
Repayable in escudos
35.3
Food for peace programs
(excluding AID loans from
PL-480 sales proceeds)
47.8
Export-Import Bank loans
318.0
Military aid credits
8.8
10. Total US government losses could run as
high as $1.6 billion on debt default and expropria-
tion, if all possible expropriation coverage
(including Anaconda's contested claims) now held
under the investment Guaranty Program came into
effect before hostile actions were taken. Washington
not only could suffer a $900 million debt repudi;t-
tion but could be liable for $64 million in claims
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
CONFIDENTIAL
under Export-Import Bank credit guaranties and,
in the event of total expropriation without com-
pensation, for between $300 million and $650 mil-
lion under the Investment Guaranty Program. If
Anaconda were awarded only a $91 million settle-
ment and expropriation action were taken by the
end of 1970, US government losses would be likely
to run somewhat less than $1.4 billion. Should
Chile move to block foreign exchange remittances,
the US government also would be committed to pur-
chase, over time, a maximum of nearly $700 million
in inconvertible escudos held by US investors
covered under the investment Guaranty Program.
The government's additional losses in such an event
cannot be estimated.*
Conclusions
11. An Allende government would threaten a US
public and private financial stake in Chile that now
totals at least $2.4 billion. Privately held assets
amount to nearly $1.5 billion, counting direct in-
vestments only at their $800 million book value even
though they are worth considerably more. The US
government has outstanding loans approximating $900
million, in addition to sizable contingent liabili-
ties for private losses under Export-Import Bank
and Specific Risk Investment Guaranty programs.
Total losses would, of course, be smaller than
$2.4 billion if nationalization were nct total,
some compensation were provided, or some loan
repayments were permitted.
12. Even if all US properties were nationalized
without compensation and all loans defaulted, private
sector losses would be considerably smaller than the
$1.5 billion stake. Because some short-term assets
* Expropriation and inconvertibility coverages
overlap to the extent that an investor invokes his
guaranty against inconvertibility to cover blocked
capital depreciation outflows. In such a case, the
potential expropriation coverage is reduced. Con-
versely, in the event of expropriation, an investor's
inconvertibility coverage would serve only a limited
purpose.
7 -
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 eclassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
CONFIDENTIAL
will be recovered before Allende could take action
and because long-term assets totaling $350 million
are currently protected by US government guaranties,
the net private loss at most would be about $1 ,bil-
lion. Depending upon the timing of nationalization
and the decision regarding Anaconda's eligibility
for guaranty coverage, the US government might have
to cover as much as an additional $300 million to
$350 million in private losses. Thus, including
renunciation of US government loans, the US govern-
ment's loss would total between $1.25 billion and
$1.6 billion. Should US investor remittances be
blocked, the government also is committed to make
good on as much as $700 million in inconvertible
escudos, which would add an indeterminable amount
to its potential bill.
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2 ?
 W Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
Total
Coverage fcr Investments in Chile Under the Specific Risk Guaranty Program a/
10 September 1970
Million US $
C)
z
Mining
APPENDIX
Expropriation Risk b/
Currency
inconvertibility
Risk
Current Stand-by Current Stand-by
Coverage Coverage Coverage Coverage
292.6 354.6 c/ 50.8 644.9 c/
155.6 257.3 c/ 31.7 388.8 c/
Anaconda 30.5 238.6 c/ 30.5 238.6 c/
Kennecott Copper 84.6 0 0 98.0
Cerro 14.2 0 0 18.4
Continental Copper and Steel 9.2 15.8 0 25.0
Bethlehem Steel 17.1 2.9 1.2 8.8
International Telephone
and Telegraph
Manufacturing
92.7 79.9 4.8 174.7
Dow Chemical 8.5
International Chemical and Fibers 1.1
W.R. Grace 0.5
Crown Zellerbach 1.7
Ralston Purina 1.7
Firestone Tire and Rubber 1.5
1.1 0.1 20.5
0.1 1.2 0.2
0 0.1 0.5
0 0.1 1.6
0.8 0.7 2.1
1.5 0 15.0
n
0
z
z
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
Million US $
Ford Motor
Dresser Industries
Parsons and Whittemore
Xerox
Other companies
Banking and other services
International Telephone and
Telegraph (through Sheraton
-Hotels subsidiary)
Bank of America N.T.-and S.A.
First National City Bank
of New York
American Broadcasting
Expropriation Risk b/
Currency
Inconvertibility
Risk
Current Stand-=by Current Stand-by
Coverage Cove-rage Coverage Coverage
0.5 1.2 0 9.3
1.5 0.5 0.1 1.3
4.4 6.3 0.5 10.1
1.3 0.2 Negl. 1.5
1.8 1.1 0.9 4.1
n
0
z
19.9 4.4 10.5 15.1
:6.4 3i5 0 11.1
12.3 0.8 10.3 2.8
1.0 0 0.2 1.0-
0.1 0.1 0 0.2
a. Because of rounding, components may not add to the totals shown.
b. Including protection under combined expropriation and war risk policies.
c. The eligibility for coverage of $235.4 million of Anaconda's investment
is in dispute, because the company was forced in 1969 to sell a 51% share
in. two of its holdings to the Chilean government.
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
US Firms, Subsidiaries, and Affiliates in Chilot.
Subsidiary or Abbott Laboratories, North Chicago,
Branch of: Illinois
Operation: Manufacture of pharmaceutical products
Number of
Employees: 75
Afia Chilena Seguros Ltda.
Subsidiary or
Afia Worldwide Insurance, New York, N.Y.
Branch of:
Operation:
Insurance claims settling agency
b
N
f
um
er o
Employees:
10
Subsidiary or
International
Telephone & Telegraph
Branch of:
Corporation,
New York, N.Y.
Operation:
International
and national messages
Number of
Employees: 58
Total annual
sales: $602,000
* American Screw (Chile) S.A. Fabrica de Pernos y Tornillos
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Total annual
sales:
Cia. American
Subsidiary of:
Operation:
Number of
Employees:
Total annual
sales:
Andes Copper
Textron, Inc., Townsend Company Division
Beaver Falls, Pa.
Manufacturing of all types of industrial
fasteners
330
$3,750,000
Smelting S.A.
American Smelting & Refining Company,
New York, N.Y.
Nominally "ore buying" but, currently,
the activities of C.A.S. are limited
to the leasing of mining properties.
5
$79,000
Mining Company & Chile Exploration Company
Subsidiary of:
Operation:
The Anaconda Company, New York, N.Y.
Advisory service for mining operations
and administration
t Aiteria c indicate whether a firm is minority, majority, or
whoZZrt owned, as foZZows; minority; majority;
whoZZy owned. For a cross-reference Zisting, by parent company,
see p. 17.
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
Total annual
sales:
.Subsidiary or Armco Stool Corporation - International
Branch oft Division, Middletown, Ohio
Operations Manufacture of grinding balls
Number of
Employees: 53
$9,000
*** Arthur Anderson & Co.
Branch of: Arthur Anderson & Co., Chicago, 111.
Operation: Accountants
Number of
Employees: 34
Artistab Aliaeos de Chile, Inc.
Subsidiary or Allied Artists Pictures Corporation,
Branch of: New York, N.Y.
Operations Distribution of American movies
Bank of America N.T. & S.A.
Branch of: Bank of America NT&SA, San Francisco,
California
Operations Banking
Number of
Employees: 302
Bethlehem Chile Iron Mines Company
Subsidiary of: Bethlehem Steel Corporation,
Bethlehem, Pa.
Operation: Mining & beneficiating iron ore
Number of at Romeral & Tofo Mines near La Serena
Employees: 1,575
Boyles Bros. Drilling Co. (Chile)
Operations
Number of
Employees:
Total annual
sales:
Braden Copper
Subsidiary oft
Operations
Number of
Boyles Bros. Drilling Co., Salt Lake
City, Utah
Drilling,diamond core and rotary
90
$687,500
Company
Kennecott Copper Corporation,
New York, N.Y.
49% owner of the Sociedad Hinera
El Teniente S.A. -- producers of
copper and related products; Santiago
executive office
Employees; 6
Braniff Internatioral
Branch oft
Operations
Number of
Employees:
Braniff Airways Inc., Dallas, Texas
Air transport of passengers and cargo
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85TOO875ROO1600030141-2
Operation:
Branch of: Chrysler International S.A.,
Mexico, D.F. Mexico
Assembly under license of Dodge Dart i
Simca 1000. Sala of car, truck, and
bus fleets; diplomatic and government
vehicles and replacement parts.
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Total annual
aalca:
Phelps Dodge Corporation, New York, N.Y.
Manufacture of copper wire and cables
Branch oft
Operation:
Number of
Employees:
Total annual
sales:
Columbia Pict
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Total annual
sales:
** Brionan-McKou (Chile) Ltda.
Subsidiary or A.G. McKee & coo, Cleveland, Ohio
Branch of:
Operation: Engineering and construction
*** Cajan Rogistradorae National S.A.C.
Subsidiary or The National Cash Register Ct,.,
Branch of: Dayton, Ohio
Operation: Importers of office machinery
Number of
Employoos: 400
Total annual
sales: $5,520,000
** Chicle Adams SJ .C.I.
Subsidiary or Warner-Lambert Pharmaceutical Co.,
Branch of: Morris Plains, N.J.
Operation: Confectionary (chewing gum)
Number of
Employc;en: 65
*** Chrysler International
The Coca-Cola Export Corporation,
Now York, N.Y.
South Andean Tagion distributors of
beverages
40
Columbia Pictures Corp., Now York, N.Y.
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85TOO875ROO1600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
**
Compania Anonimn Cuprifera do Sagaona
Subsidiary oft
Operations
Continental Copper and Steel
Copper mining, 73% owned by Continental
*
Compania do Cobra Chuquicamata
Affiliate oft
Operations
The Anaconda Company, New York, N.Y.
Copper mining; 49% owned by Anaconda
*
Compania do Cobra Salvador
Affiliate oft The Anaconda Companny, New York, N.Y.
Operations Copper mining; 49% owned by Anaconda
AA* Compania Internacional de Ingenieria, S.A.
Subsidiary or Morrison-Knudsen Company, Inc.,
Branch oft Doiso, Idaho
Operations Consulting engineers
Number of
Employees; 36
Compania Minera Andina S.A.
Subsidiary or Cerro Corporation, Cleveland, Ohio
Branch oft
Operations Copper mining: 70% controlled by Cerro
Number of
Employees: 193
Compania Minara txotica S.A.
Subsidiary or The Anaconda Company, ?Maw York, N.Y.
Brar.vh oft
operations Copper mining; 751 owned by Anaconda
Number of
Employees; 359
Total annual
sales; None at present
Compania Standard Electric S.A.C.
Suboidiar-f oft international Telephone a Telegraph
Cqrp,, Now York, N.Y.
Operation: Assembly and installation of telephone
' Consponantas Automotrices Rockwell Standard ` Cia, Ltda
Affiliated North American Rockwell Corporation,
company oft Pittsburgh, Pa.
Operations Springs factory
Number of
Employeast 220
Total annual
sales; $4,000,000
equipment
Total annual.
sales; $4,020,000
Compania de Telefonos de Chile
Subsidiary or international Telephone & Telegraph
Branch oft Corporation., Now York, N.Y.
Operations Telecoa unications
Number of
Employees; 5,535
Total annual
revenues. $60,160,000
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 0
Subsidiary or Crown Cork & Coal Co.,
affiliate oft ?Philadelphia, Pa.
Operations bottle caps manufacturer
Number of
tmployongt 70
n/a Dnloitto, Plunder, Itarking, Vella & Co.
Affiliate oft ttankinn & Vella, New York, N.Y.
Operations Public accounting
dumber of
t:mployona t 45
now puimica Chilnna ti.A.
Subsidiary or now Chemical Company N.V., Aruba
branch oft
Operations stales representative for the Dow
Chnmicol Company
Number of
trmploynaa t 34
Total annual
galeat 95,000,000
**" Dun & Bradstreet, Ltda.
Subsidiary or Dun & t3radatrnet, Inc., flew York, N.Y.
Branch of:
Operations Commercial reporta and collections
Number of
t;mployeea: 25
Subsidiary or The Clute International Institute -
branch oft Los Angola@, Calif.
Operationt Books, records
Number of
tmployeeat ft
Subsidiary or General t:lactric Company,
branch of; Schenectady, N.Y.
Operations Manufacture of Incandescent
and fluorescent lamps
Nusr of
t mployaets t 200
Total annual
9810111 92,000,000
Affiliate oft The Coca-Cola Interatn rican Co.,
t'" York, N.Y.
Operations Coca-Cola bottling plant
Nuber of
bcployaeat 150
Total annual
talent
eclassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
L Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
lowest 493
`Total annual
salsa: $36,000,000
.tf
flubait1iaty or ltandard Oil Co. (New Jersey),
"ranch oft New York, N.Y.
Operations Lubee blendingq plant, plasticizer
plant, distribution of chemical
products
rmployaoa t 66
Total annual
Malang 94,000,000
Number of
flubnidiary or Standard oil Co. (New Jersey)
branch oft New York, N.Y.
Operations Distribution of petroleum products
Number of
fmployeaat 375
Total annual
941901 $47,175,000
Subsidiary or rerro Corporation, Cleveland, Ohio
branch oft
Operations Manufacturing of porcelain enamel
Number of
and ceramic glaze Trite
r-ployeest 35
r1rat National City Bank
branch oft rirat National City Dank - New York, N.Y.
Operations banking
Nusalter of
CGmployeeet 358
branch oft cord Motor Co., Dearborn, Mich.
Gperettans Manufacture and sasensbly ct cars,
light trucks, bus chadaia, heavy
trucks, and tractors
n/a General Millil do Chile, Alimentoa B.A.C.S.
subsidiary oft General Mills. Inc.
Operations rood processing
??? General Motors Chile S.A.
Branch oft General Motors Corporation,
Detroit, Mich.
Operations Astaenbly of autrwaaotive vehicles
(Ci ur let), ;alai of localcles,
aeacnbled And imported vhi
parts. and sec aortae: Frigidaire
Detroit Diesel, and 'tarax products
Numb! r of
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
n/a Grant Advertising (Chile) Ltda.
Oubsidinry or Grant Advertising Inc. Int'l,
branch off Chicago, Ill.
Oparationt Advertising
Number of
>smployoas t 20
n/a The Home Insurance Company
Subsidiary or Afta Worldwide Insurance
Branch oft
Oparationt Insurance
Nutpr of
Bmployaeagt 43
n/n Notal Carrara - Sheraton
Subsidiary or ITT - Sheraton, New York, N.Y.
branch oft
Number of
rmpioyyees t 467
Oparationt !total
Total annual
palest $2,000,000
?* Hotel San Cristobal
Subsidiary or ITT - Sheraton, Now York, N.Y.
Branch oft
Operationt Hotel (scheduled tr open 1 October 1970)
Subsidiary or Intainat onsl ttuainess Consultants Ltd.
Branch oft
Operations Industrial conaultt:ncy services
Number of
raployvoa t 12
If31 C Management Services 1nm.
Subsidiary or IlIC Manajamont Services, Inc., t;
frnnnh oft lr tl . basic rcanoo-y Corp. IitHC
Operations Management advisory service
Nutter of
trployees t 6
IBM De Chile, O.A.C.
Subsidiary oft Ins World Trade Corporation,
Now York, N.Y.
Op,'ratlont IBM data procaasing eq- ip ant, IBM
data center services, IBM office
l loy*02t M
''butte r of
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
0 Induatria Nacional de Neumatican V.A. "INIA"
Subsidiary or
branch aft
Number of
Imployclog t
Operations
Total annual
"alone
Associates oft
Operations
Number of
Rmployeent
Total annual
"Aleut
General Tire International Co.,
Akron, Ohio
625
Manufacturing of tires and other
acca"norien
$18,600,000
t3GM Sudamericana Ltda. "NIUSA"
NIIICO, Inc. Elkhart, Indiana
Bronze foundry# and mechanical shop
$1,500,000
Industriaa puimicae Du Pont, V.A.
Subsidiary or
branch oft
Operations
Number of
tployeea s
Total annual
salast
Ingersoll-Rand
Subsidiary or
branch oft
Number of
mployeost
Operationt
branch oft
Operation,
Number of
V.:aployaea t
Total annual
salsa,
D.P. Goodrich Co., Akron, Ohio
Sales repreaentativo office
$2,500,000
ITT Coastunicaciones Hundialaa S.A.
Subsidiary or International Telephone and Telegraph
Branch oft Corporation, Now York, N.Y.
Operations International communications
Number of
t loyeea, 153
Total annual
sales, $1,827,004
h.i. du Pont do Nemouru 6 Co., Inc.,
Wilmington, Del.
Manufacturer of indu"trial ex lonivea
at Rio Loa, Calama, Chile, with
auxiliary mixing plant at Punta do
Teatinos, La Serena, Chile
366
$5,900,000
international
Ingersoll-Rand Co., New
2
Industrial machinery. Two technical
representatives handle all solos and
service operations throughout Chile.
:~letributor is Grace a Cia. which
also has offices throughout Chile.
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
n/a Johnnon 1* Iliggina (Chile) Ltda.
Subsidiary or Johnson & Higgins, Now York, N.Y.
Branch oft
Operationt Insurance brokerage
Number of
l,mploynna t 10
** S.C. .Iohnaon & Bon, Inc., Chilena y Cia., Ltda.
Subsidiary or S.C. Johnson & Bon, Inc., Racine,
branch oft Wisconsin
Operations floor waxes, scouring powder, aeronol
Number of
Bmployonst 17
Total annual
salsas $1,675,000
n/& J.Walter Thompson Chilena B.A.C.
Subsidiary or J. Walter Thompson Co., Now York, N.Y.
Branch oft
Operations Advertising and market research
Total annual
palest 34,500,000
Subsidiary or raetman Kodak Company, Rochester, N.Y.
Branch oft
Number of
Emplo sent 76
Operations Photographic products
Total annual
salute: $1,250,000
*?* Koppers Company, Inc. - Chile Branch
Branch oft Koppers Company, Inc., Cleveland, Ohio
Number of
Employeeat 7
?? Laboratorion Forhans Zonito
Subsidiary or Chomway Corporation, Wayne, Now Jersey
Branch oft
Operations Ponta Forhan'n (Forhan'e toothpaste)
Total annual
sales$ $150,000
Subsidiary or Pfizer Corporation, Now York, H.Y.
Branch of:
Orations Phar acautical products, taod auppla-
Number of
mente, and veterinary products
Employeoe t 248
Total annual
stalest $3,000,000
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
*** Laboratorion Wyeth, Inc.
General Cable Co., Now York, N.Y.
Telephone and electrical conductors
and brass mill
1,000
$27,800,000
Metalurgicas Phoom Chilena S.A.
Rheem international Inc. (Subsidiary
of Rhoom Manufacturing Co., a
Division of City Investing Co,ipany),
Linden, N.J.
Operation: Manufacture and sale of steel
shipping
Number of
Employees: 51
Total annual
salons $1,875,000
Subsidiary or
Branch oft
Operations
Number of
Employeent
Lain Crown S.A.
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Total annual
nalen:
Wyeth Laboratories, Inc.,
Philadelphia, Pa., Division of
American Home Products Corp.
Pharmaceutical laboratory
Papelon Lspociales
Crown Zollorbach International, Inc.,
San Francisco, Calif.
Producer of special papers, including
tabulating cardstook
$12,000,000
*** Lubricantos Gulf do Chile
Subsidiary or
Branch of:
Operation:
Gulf Oil Corporation, Houston, Texas
Importation, production, and com-
mercialization of lubricating oil
and greases
Employees: 8
Total annual
salon: $550,000
n/a Manpower do Chile Ltda.
Subsidiary of: Manpower, Inc., Milwaukee, Wisconsin
Operation: Temporary help service
Number of
Employees: 3S
Number of
* Manufacturas do Cobra S.A. "Madeco"
Affiliate of:
Operations
Number of
Employees:
7ota1 annual
salon:
** Manufacturas
Subsidiary or
Branch oft
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
Number of
Employees:
Operation:
Total annual
salon:
n/a Marriott in-Flito
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Marine Construction and Design Co.,
Seattle, Wash.
5pj
Shipbuilders and repairers, fishing
float operators, prooossors of fish
meal, distributors of Marco products,
and Vickers hydraulics.
$4,000,000
Services of Chile Ltda.
Marriott Corporation, Washington, D.C.
Flight Kitchen
McCann-Erickson Corp. & Cia. Ltda.
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Total annual
sales:
McCann-Erickson International,
Now York, N.Y.
Advertising and marketing services
$3,750,000
McCreary Koretsky Engineers (MKE)
Operation:
Number of
Employees:
Total annual
sales:
McCreary Koretsky Engineers
Francisco, California
Consultant engineers
n/a Metro-Goldwyn-Mayor do Chile
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Metro-Goldwyn-Mayer, Inc.,
Now York, N.Y.
Film distribution
Mobil Oil de Chile Ltda.
Subsidiary ^r
Branch of:
Operation:
Number of
Employees:
Total annual
salon:
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Mobil Oil Corporation, International
Division, New York, N.Y.
Manufacture and sale of lubricants
and allied products
55
$5,000,000
e I. Ltda.
Monsanto Company, St. Louis, Missouri
Sales promotion and technical assistance
for Monsanto products
- 11 -
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
Pan American World Airways
Operation:
Number of
Employees:
Pan American World Airways, I:1c.,
Now York, N.X.
Airline
Paramount Films of Chile, Inc.
Subsidiary or
Branch of:
Operation:
Number of
,rmployees :
Total annual
sales:
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Total annual
sales:
Gulf and Western, Houston, Texas
Motion picture distributor
17
$600,000
Company
Parke, Davis & Company, Detroit,
Michigan
Pharmaceutical laboratory
$1,250,000
Parsons & Whittemore Management Corporation
Branch of: Parsons & Whittemore Management
Corporation, New York, N.Y.
Operation: Provide corporate and plant management
to Celulosa Arauco
Number of
Employees: 20
n/a Pepsi-Cola Interamericana
Subsidiary or Pepsico, Inc., Long Island, N.Y.
Branch of:
Operation: Sales planning
Number of
Employees: 7
Petroquimica-Dow S.A.
Subsidiary or Dow Chemical Company A.G. Zurich,
Branch of: Switzerland
Operation: Under construction - will manufacture
polyvinyl chloride and low-density
polyethylene
Employees: 250
Number of
Mining Company
Employees: 340
Number of
Potrerillos Railway Coml,.any
Subsidiary or The Anaconda Company, New York, N.Y.
Branch of:
Operation: Movement of cargo for Andes Copper
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
Associates: Price Waterhouse & Co., Peat, Marwick,
Mitchell & Co., New York, N.Y.
Operation: Accounting and auditing, management
consulting, and tax services
Number of
Employees: 160
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Total annual
sales:
The Gillette Company, Boston, Mass.
Importers and manufacturers of shaving
supplies and deodorants
34
$1,650,000
S.A.
Ralston Purina Co., St. Louis, Mo.
Employees: 130
Operation: Animal
Purina de Chile,
Subsidiary or
Branch of:
Number of
Quimica Plastica S.A.
Total annual
sales:
Subsidiary or Dow Quimica Chilena S.A.
Branch of:
Operation: Manufacture of polystyrene resins
Number of
Employees: 47
RCA S.A. Electronica
Subsidiary of: RCA International Division, New York, N.Y.
Operation: Electronic equipment producers
Number of
Employees: 1,300
Total annual
sales: $9,625,000
Reader's Digest Chile Ltda.
Subsidiary of:
Operation:
The Reader's Digest Association, Inc.,
Pleasantville, N.X.
Editors and printers of Chilean edition
of SeZeeciones deZ Reader's Digest,
distributors of other magazines and
sale of books
86
sales: $2,205,549
Number of
Employees:
Total annual
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2 ?
 classified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
specialties
Employees: 108
Total annual
sales: $1,200,000
Number of
Rafractarion Chilonos, S.A.
Subsidiary or Harbison - Walker Refractories Co.,
Branch of: Div. of Dresser Ind., Pittsburgh, Pa.
Operation: Manufacture of refractory bricks and
Total annual
sales:
Remington Rand Chile Ltda.
Subsidiary or Sperry Rand Corporation -- Remington
Branch of: International, New York
Operation: Manufacture of metal office furniture
Number of
Employees: 29
Subsidiary or Rockwell Mfg. Co., Pittsburgh, Pa.
Branch of:
Operation: Holding and selling organization, steel
n/a Schering Compania Ltda.
Subsidiary of: Schering Corporation, Bloomfield, N.J.
Operation: Pharmaceutical products
Number of
Employees: 6
Semillas Tracy Ltda.
Subsidiary or Chilean limited liability partnership
Branch of:
Operation: Seed production
Number of
Operation: lanufacturer and distributor commercial
Number of
Employees: 13
Total annual
sales: $450,000
Singer Sewing Machine Company
Subsidiary or Singer Company, New York, N.Y.
Branch of:
and domestic sewing machines
Employees: Approximately 450
Soc. Hotel Portillo Ltda.
Operation: Ski resort
Number of
Employees: 250
Total annual
sales: $750,000
Affiliate of:
Operation:
Number of,
Employees:
Total annual
sales:.
Braden Copper Co.,
Copper mining= 49%
10,181
$183,977,734
S.A.
New York, N.Y.
owned by Kennecott
3.4 -
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
Sociodad Quimica
Subsidiary or
Branch of:
Operation:
Number of
Employees:
Products:
Total annual
sales:
y Mincra do Chile S.A.
Anglo Lautaro Nitrate, Now York, N.Y.
Mining and chemical
10,705
Sodium nitrate, sodium sulphate,
potash nitrate, and iodine
$40,000,000
E.R. Squibb & Sons Inter-American Corporation
Subsidiary or E.R. Squibb & Sons, Inc., Now York, N.Y.
Branch of:
Operation: Pharmaceutical laboratory
Number of
Employees: 74
The Sydney Ross Co. & Cia., Ltda.
Subsidiary or The Sydney Ross Co., New York, N.Y.
Branch of:
Operation: Pharmaceuticals and toiletries
Number of,
Employees: 290
Texaco chile S.A.C.
Subsidiary of: Texaco Inc., New York, N.Y.
Operation: Manufacturer of lubricants and marketing
of petroleum products
Twentieth Century Fox Chile, Inc.
Subsidiary or
Branch of;
Number of
Employees:
Operation:
Total annual
sales:
Twentieth Century Fox, Now York, N.Y.
32
Film distributors
Union Carbide Comercial Chile, Ltda.
Subsidiary or Union Carbide Inter-America Inc.,
Branch of: New York, N.Y.
Operation: Indent and stock sales - raw materiels
Number of
Employees: 8
n/a United Artists South American Corporation
Subsidiary or United Artists Corporation, New York,
Branch of: N.Y.
Operation: Film distributors
Number of
Employees: 20
n/a Universal Pictures Corp. of Chile
Subsidiary or Universal International Films, Inc.,
Branch of: New York, A.Y.
Number of
Employees: 18
Operation: Film distributors
Total annual
'sales: $428,521
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
n/a Upjohn Compania, Lida.
Subsidiary or Upjohn Co., A.A., Panama and Upjohn Co.,
branch oft s.A., Belgium
Operations Importing manufacturing and distribution
Number of
of lil+armaaeutical products
Employeeat 30
Total annual
salest 0400,000
n/a Warner Bros - Seven Arta (south), Inc.
Subsidiary or Warner Bros, Bevan Arta International,
branch oft Now York, N.Y.
Operations Film distributors
Number of
Employenns 16
Xerox do Chile, Ltda.
Subsidiary or Xerox Corporation, Rochester, N.Y.
Branch oft
Operations Xerographic rental and copying servicer
Number of
Employeest 25
Total annual
salsas $370,000
[2eclassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2
tt!~as~# ofptPh~`e l,iat It $,
lay US Ps tpht C!>r1 Ahy
MO f, IpIp lhci1igIohs !)"IV)
11h9Cr~htla t ? h+is9 Cupil*et Hihiha Cot ahy ahd
Chilb txi7lorswti!lh Ciftp ty
t'?r satria de C.4firp ('1-? #t!feat ata
Cr,i~l+AniA dP Cnlbt? alaa!lor
('Stm#*ahia t'(ihota rt1ntica, R.A.
'otter i l lot; P l lway Ct3'1+'pahy
C430a-Chlat The COOa-Cr3la l?!peatt cottx4atioh
#':t,toote11w'3nra An+1ihs, S.A.
btrw Chemicals s Dow 00ittic.a Chi lptta, A.A.
lettrrlvit%1Ca-brew, R.A.
Qulf%lca Pla itlea, A.A.
international Telpphtoh? to, 'e pgrapht
All A#%orican CAl)lo_sl Aht1 Podia
Cor lahia Atan!iartl Elactrit*, i.Agt .
Canis de Telp1onoq tie_ Chile
Hotel Carrpra - Aheratnn
Hotel Pan Critatobal
1 Ct uhfCaCibha!! nubdialea, 4.A.
9enhpcott t nra!3en qt.;ae-Ar Coopohy
RocipdAd Miners 'T1 eniento," S.A.
Standard Hilt tritto industrial, l.t?1 .
(ii.J .) tttwo standard oil Co. (Chi let , S.A.C.
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP85T00875R001600030141-2