PRG MEETING TO DISCUSS THE WORLD BANK LOAN TO CHILE, 4 NOVEMBER 1987

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89B00224R000401440001-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: September 20, 2011
• Sequence Number: 1
• Publication Date: November 5, 1987
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP89BOO224R000401440001-3
SECRET
ER 3521X/1 87 25X1
5 November 1987
SUBJECT PRG Meeting to Discuss the World Bank Loan to Chile, 4 November 1987
1. The primary purpose of the meeting was to review whether or not the
US should oppose or delay a World'Bank loan scheduled for a vote later this
year. State was arguing for a delay to put additional pressure on Pinochet
for the 1988 plebiscite. Of particular concern to State is Congressional
reaction if we do not oppose the loan. Treasury indicated that it a
postponement would have a short term effect, but also said that Chilean
economy was a healthy one.
2. I provided a brief intelligence assessment which concluded that
although the delay of the loan would not significantly affect Chilean economy,
Pinochet, the moderate opposition, the junta that supports Pinochet, and even
the public tended to exaggerate US ability and Chilean vulnerability to US
actions. In addition, I indicated that CIA was a little less certain that
Pinochet had locked up the nomination for the plebiscite. We believe there is
some possibility that the junta may decide Pinochet is too much of a
liability. Finally, it looks like the moderate opposition has been making
some progress in expanding voter registration and even of a selection of a
viable candidate. After hearing that State believed the US would vote against
the loan or abstain anyway no matter if there was a delay, the PRG concluded
that delaying the vote and using that leverage to get some concession out of
Pinochet for a more open and tree plebiscite probably was worth the effort.
Before any action is taken, Treasury is going to take some soundings with the
World Bank.
3. One last observation I made was that it was somewhat ironic to be
taking action against Chile -- among all the countries in Latin America and
perhaps the world Chile is a model debtor and consistently pays its debts, as
well as a country that has a healthy and growing economy. Finally, I recalled
our current policy toward Panama and the "success" we are having in modifying
Noriega's behavior.
hard J. err
Deputy Director for Intelligence
CL BY SIGNER
DECL OADR
SF.& -r 06/ A
Declassified in Part - Sanitized Copy Approved for Release 2012/02/28: CIA-RDP89B00224R000401440001-3