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U.S. Department of State
Chile Country Commercial Guide
Office of the Coordinator for Business Affairs


                       COUNTRY COMMERCIAL GUIDE

                           FISCAL YEAR 1996

                               CHILE



                       American Embassy Santiago
               Avenida Andres Bello 2800; Santiago, Chile
              Tel: (56-2) 232-2600    Fax: (56-2) 330-3710

This Country Commercial Guide (CCG) presents a comprehensive look at 
Chile's commercial environment through economic, political and market 
analyses.  

The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annualy at U.S. Embassies through 
the combined efforts of several U.S. governement agencies.  


CHAPTER I.  EXECUTIVE SUMMARY

CHAPTER II.  ECONOMIC TRENDS AND OUTLOOK
Major Trends and Outlook
Principal Growth Sectors
Government Role in the Economy
Balance of Payments Situation
Infrastructure Situation

CHAPTER III.  POLITICAL ENVIRONMENT
Nature of Political Relationship with the U.S.
Major Political Issues Affecting Business Climate
Brief Synopsis of Political System

CHAPTER IV.  MARKETING U.S. PRODUCTS AND SERVICES
Distribution and Sales Channels
Use of Agents and Distributors:  Finding a Partner
Franchising
Direct Marketing
Joint Ventures/Licensing
Steps to Establish an Office
Selling Factors/Techniques
Advertising and Trade Promotion
Pricing Products
Sales Service/Customer Support
Selling to the Government
Protecting Your Product from IPR Infringement
Need for a Local Attorney
AmCham

CHAPTER V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
Best Prospect Listing
Best Prospects for Non-Agricultural Goods and Services
Best Prospects for Agricultural Products
Significant Investment Opportunities
 
CHAPTER VI.  TRADE REGULATIONS AND STANDARDS
Trade Barriers (Tariffs/Non-Tariff Barriers/Import Taxes)
Customs Valuation
Import Licenses
Export Controls
Import/Export Documentation
Temporary Entry
Labeling, Marking Requirements
Prohibited Imports
Standards (E.G., ISO 9000 usage)
Free Trade Zone/Warehouses
Special Import Provisions
Membership in Free Trade Arrangements

CHAPTER VII.  INVESTMENT CLIMATE
Openness to Foreign Investment (Investment Barriers)
Conversion and Transfer Policies
Expropriation and Compensation
Dispute Settlement
Political Violence
Performance Requirements/Incentives
Right to Private Ownership and Establishment
Protection of Property Rights
Regulatory System:  Laws and Procedures
Bilateral Investment Agreements
OPIC and Other Investment Insurance Programs
Labor
Foreign Trade Zones/Free Ports
Capital Outflow Policy
Major Foreign Investors

CHAPTER VIII.  TRADE AND PROJECT FINANCING
Brief Description of Banking System
Foreign Exchange Controls Affecting Trading
General Financing Availability
How to Finance Exports / Methods of Payment
Types of Available Export Financing and Insurance
Available Project Financing
List of Banks with Correspondent U.S. Banking Arrangements

CHAPTER IX:  BUSINESS TRAVEL
Business Customs
Travel Advisory and Visas
Holidays
Business Infrastructure

CHAPTER X:  APPENDICES

APPENDIX A:  COUNTRY DATA
APPENDIX B:  DOMESTIC ECONOMY
APPENDIX C:  TRADE
APPENDIX D:  INVESTMENT STATISTICS
APPENDIX E:  U.S. AND COUNTRY CONTACTS
APPENDIX F:  MARKET RESEARCH
APPENDIX G:  TRADE EVENT SCHEDULE


CHAPTER I.  EXECUTIVE SUMMARY

Chile is the region's most dynamic and promising market.  Its strength 
and attractiveness lies not in its size (as a country of some 13.5 
million people, it is relatively small), but in the transparency of its 
regulation, in the energy and professionalism of its entrepreneurs and 
in the predictability of its decision-makers.

Twenty-two years of market-led reforms have resulted in eleven years of 
uninterrupted economic growth, which has averaged 6 percent per year 
over the last six years.  An increasingly diversified economy and 
strengthening ties with buyers and suppliers in Europe, Asia and the 
Americas have given Chile a wide range of options for further growth and 
continued prosperity.  Prudent economic policy-making has secured 
stability in spite of troubling situations elsewhere in Latin America.  
The economic crisis in Mexico affected Chile much less than other Latin 
American countries, and the effects were short-lived.  

Chile enjoys both budget and balance of payments surpluses, and has 
sufficient funding to finance growth.  Its internal rate of savings is 
above 25 percent, more like the Asian tigers than its Latin neighbors.  
Foreign investment, made easy by Chilean regulations (except regarding 
short-term investment and purely financial investment), is entering the 
country, and unlike Mexico, the investment is long-term instead of 
short-term.  There has been some concern in official circles that too 
much foreign investment is pushing up the value of the Chilean peso and 
making Chilean exports less competitive.  This has lead to measures to 
restrict financial inflows.

The Chilean political system is responsible for a good part of this 
success.  In 1990, Chile emerged from 17 years of military government 
with a broad overall consensus about the general parameters of economic 
management.  The political center appears to have gained at the expense 
of the extreme left and right.  Tension still exists in the area of the 
relationship of the civil government with the military, but does not 
threaten democratic rule.  

This is an excellent time to explore the Chilean market.  If anything, 
circumstances for U.S. suppliers should improve.  Negotiations to 
achieve Chile's accession to the North American Free Trade Agreement 
(NAFTA) are underway.  If successful, this will stimulate more trade and 
investment opportunities for U.S. companies.

Chile is a particularly promising market for high technology and 
infrastructural-type products.  These include electricity generation and 
related products, pollution control equipment, telecommunications 
equipment, computers and peripherals, mining industry equipment, medical 
equipment, and port equipment.  There are also excellent opportunities 
in consumer products and services such as sporting goods and 
franchising.

U.S. exporters to Chile should encounter few problems in financing 
availability for its customers.  Sufficient Chilean, U.S., and third-
country banks operate in Chile.   Chilean banks enjoy all the trade 
credit they need to conduct international transactions.  OPIC and EXIM 
are both active, and the World Bank and the Interamerican Development 
Bank provide project financing to the extent that Chile needs and wants 
it.  Chile has the highest Moody's rating in Latin America, BAA-3.  
Standard & Poors raised its rating of Chile to A- in July 1995.  Chilean 
reserves in June 1995 were near $15 billion, or over 13 months of import 
coverage, more than sufficient for its needs.

While solid opportunities for U.S. products abound in Chile, this is not 
to say that competition doesn't exist.  The U.S. is Chile's largest 
single supplier (about 23 percent of the import market), but European 
and Asian competitors are strong in Chile.  It is crucial to establish 
an effective and efficient presence.  Many foreign companies have 
subsidiaries or branch offices in Chile, while others utilize 
distributors or representatives.  Although the 40 percent of Chile's 
population resident in the Santiago metropolitan region is easily 
reached, Chile's unusual geography makes it sometimes difficult to cover 
other population centers, making knowledgeable and well-connected 
Chilean representation important.  The exporter has to make a decision 
based on the factors of control, cost, and coverage when choosing the 
proper route for entrance into the Chilean market.

Chile has one of the simplest and most transparent regulatory systems in 
the region to deal with trade and business activities.  Careful review 
of applicable regulation and full compliance with its guidelines will 
guarantee more successful and trouble-free operations in the Chilean 
market.  Chile does maintain import and export licensing requirements, 
but they are more for statistical purposes rather than control.  For all 
except a few sensitive items, virtually anyone is free to import 
anything.

It is not difficult for foreign businesspersons to operate in Chile.  
Air connections are improving, and in-country travel arrangements are 
adequate.  Visa provisions are not onerous.  This is important because 
personal contact is essential to conducting business. 

Country Commercial Guides are available on the National Trade Data Bank 
(NTDB) on CD-Rom or through the internet.  Please contact STAT-USA at 1-
800-STAT-USA for more information.  To locate Country Commercial Guides 
via the internet, please use the following world wide web address:  
www.stat-usa.gov.  Country Commercial Guides can also be ordered in hard 
copy or on diskette from the National Technical Information (NTIS) at 1-
800-553-NTIS.

All amounts in this report are in U.S. dollars unless otherwise stated.


CHAPTER II.  ECONOMIC TRENDS OUTLOOK


                            Major Trends and Outlook

Chile's economy has expanded for the last eleven years, averaging over 6 
percent growth per year.  This growth has been led by a boom in exports, 
which are concentrated in primary and processed natural resources, 
principally copper, fresh fruit, and forestry and fisheries products.  
The export boom has been sparked in recent years by soaring investment, 
both foreign and domestic.  Both the product mix of and the markets for 
Chile's exports are becoming increasingly diversified, with the 
dependency upon copper declining and Latin America joining the U.S., 
Asia, and the European Union as important purchasers of Chilean 
products.

Vigorous economic growth has led to strong job creation and a gradual 
decline in unemployment (which was about 5 1/2 percent in early 1995).  
Real wages have also risen, by around 35 percent in the last six years.  
Helped by an appreciating peso, inflation has declined gradually since 
1990, reaching 7.4 percent in mid-1995.  The surge in foreign investment 
has kept the balance of payments positive for the last several years, 
and international reserves have risen accordingly.  Chile's credit 
rating is the best in Latin America.  Since Chile first received an 
investing-grade rating in 1992, Chilean firms have raised funds abroad -
- through borrowing, selling bonds, and stock issues -- to finance 
investment.  Despite the resulting increase in private indebtedness, the 
government is paying down its debt, and total debt remains below half of 
annual GDP.

Chile's economy grew by 4.2 percent in 1994.  This slower-than-usual 
rate was caused by the Central Bank's efforts to bring down inflation by 
keeping interest rates high; the effects of low commodity prices in late 
1993 and early 1994 also limited growth.  In late 1994, with inflation 
declining, the Central Bank lowered interest rates, copper prices rose 
dramatically, and the economy began to grow at a faster pace.  GDP 
growth in 1995 is expected to reach 6 percent, and inflation -- helped 
by a strengthening peso -- should end the year at or below 8 percent.

The decline in international investor confidence in Latin America after 
the December 1994 Mexican devaluation had little effect on Chile beyond 
brief stock price declines and a temporary halt in the issuance of 
Chilean stock on Wall Street via American Depositary Receipts (ADRs).  
Chile's high domestic savings rate (fostered in part by mandatory 
retirement contributions administered by private and competitive pension 
fund management firms) means that it does not depend on short-term 
foreign capital to finance its investment.  Because foreign investment 
in Chile is mostly direct investment, it is not likely to flee the 
country in response to temporary bad news.  Chile's high rate of 
investment means that production is likely to continue growing rapidly 
over the next several years.

Chile's reliance on exports and interest in market diversification have 
led it to seek opportunities to further open several current or 
potential markets.  Chile joined the Asia Pacific Economic Cooperation 
(APEC) organization in 1994.  It has signed bilateral trade-liberalizing 
agreements with several Latin American nations, and is negotiating a 
trade expansion agreement with the Mercosur nations.


                          Principal Growth Sectors

The principal growth sectors for 1995 and future years are likely to be 
mining, telecommunications, manufacturing, forestry, and financial 
services.  The mining, telecommunications and forestry sectors have 
benefitted from major investments by foreign, including U.S., companies.


                         Government Role in the Economy

Businesses in Chile are predominantly owned and controlled by private 
interests.  Prices, except those of regulated utilities, are set freely.  
Although the military and democratic governments of the last twenty 
years have privatized many state corporations, the state retains 
holdings in several industries.  The most important public corporation 
is CODELCO, the world's largest copper company, which the government has 
said it will not sell.  In 1994 and 1995, the Frei administration sold 
the government's remaining share in an airline and its electricity, 
shipping, and radio holdings.

The public sector budget is approximately 25 percent of GDP.  Important 
sources of tax revenue are the 18 percent value-added tax, personal 
income taxes, corporate taxes, and import tariffs.  The top marginal 
personal income tax rate is 45 percent on income above $75,000.  The 
government generally runs budget surpluses of less than 2 percent of 
GDP.


                           Balance of Payments Situation

Chile's international reserves, over $15 billion as of mid-1995, 
represent more than a year's worth of imports.  For the last several 
years, capital inflows have more than made up for any current account 
deficits.  The 1994 current account deficit was an easily sustainable 
1.4 percent of GDP, and the trade surplus was $660 million.  In 1995, 
the trade surplus is expected to approach $2 billion, and the current 
account should be close to balanced.



                          Infrastructure Situation

The country has a satisfactory transport system, which includes the 
fourth largest rail network in Latin America (5,511 miles, or 8,870 
kilometers).  The railroads are mostly owned by the Ferrocarriles del 
Estado, which belongs to the state.  There are two railroads connecting 
with Bolivia, one of which is privately owned, and two connecting with 
Argentina.  Emphasis is being placed on cargo transportation by rail, 
which reached nearly 5.6 million tons in 1992.

The Chilean highway network has been targeted for increased investment 
by the government.  The Panamerican highway, the only major north-south 
route, is in good condition, and there are adequate roads in many areas, 
but many secondary highways are unpaved, and there are some bottlenecks, 
particularly in urban areas.  The government is examining road 
concession possibilities to determine how to attract private investment 
in highways.

Most international airlines operate from Santiago's airport, linking 
Chile with cities in the United States and Europe.  There are also a 
number of good airports located throughout the country.  The two largest 
Chilean airlines, LAN Chile and Ladeco, are privately held, cover the 
whole country and also link Chile with many foreign countries.

Well-equipped ports are located on the Pacific Ocean, the principal one 
being Valparaiso, which is about 130 miles (210 kilometers) from 
Santiago.  Others are Arica, Iquique, Antofagasta, San Antonio, 
Talcahuano, and Punta Arenas.  Foreign and local shipping lines cover 
the international traffic, whereas the coastal traffic is handled by 
several local companies, one of which is state-owned.

Communications are excellent.  Chile has one of the best networks in the 
hemisphere.  Cable, fax and telephone connections via satellite are 
available, as is direct dialing to most parts of the world and to cities 
in Chile.  Privately owned telephone companies have substantially 
increased the number of telephones.  A wide network of cellular 
telephones is also available.  Chile also has an efficient internal and 
international postal service.

The Santiago subway, built with French technical assistance, has been in 
operation since 1976.  It is very efficient and well-maintained and is 
currently being expanded.



CHAPTER III:  POLITICAL ENVIRONMENT


         Nature of Political Relationship with the United States

Since the return to democratic rule in 1990, U.S.-Chilean relations have 
flourished.  The United States government has welcomed Chile's 
successful effort to regain its place in the international arena after 
years of political isolation, and views Chile's successful program of 
sustained economic reform and its peaceful transition to democracy as 
models for other countries.  The U.S. and Chile work closely together on 
many issues.


             Major Political Issues Affecting the Business Climate

Chilean politics is marked by broad consensus among the major parties 
about the importance of a democratic political system and a free-market 
economic system.  Key differences between the governing coalition and 
the rightist opposition involve strategies for, and the role of 
government in, addressing issues such as poverty eradication, health 
care, infrastructure and education, as well as the degree to which the 
political system should be reformed to eliminate power-sharing 
arrangements created under the former military government which protect 
the interests of the armed services and the political Right at the 
expense of those of the elected majority.


                 Brief Synopsis of the Political System

President Eduardo Frei, a Christian Democrat leading a coalition of four 
center-left parties, won an overwhelming victory in December 1993 
elections and began his six-year term on March 11, 1994, when he 
succeeded Patricio Aylwin (also a Christian Democrat).  An engineer by 
training, Frei was a successful businessman before entering politics in 
the 1980's.  Many of his closest advisors are U.S.-trained and share his 
commitment to Chile's successful free market economic model.

Frei heads Chile's powerful executive branch and his center/left 
coalition has a majority of the elected seats in both the lower and 
upper houses of Congress (the Chamber of Deputies and the Senate).  
Nonetheless, under constitutional provisions promulgated during the 
period of military rule (1973-1990), the balance of power in the upper 
house is held by the eight living "institutional" senators appointed 
near the end of the Pinochet era.  Thus, the government must negotiate 
with the conservative opposition to pass any of its legislative program.

For much of this century, Chilean politics have been marked by a three-
way division between the political right, center and left, with each 
holding roughly one-third of the vote.  This division persists today 
with the important modification that, since the transition to democracy, 
the political center (including the center right and center left) has 
gained strength at the expense of the extremes.  As a result, Chilean 
politics today revolve around two large political blocs:  the 
center/left governing coalition and the Rightist opposition which 
includes relatively modern center-right forces.  The former includes the 
centrist Christian Democratic and Radical parties, and the moderate-
leftist Party for Democracy and the Socialist Party.  The latter 
includes the National Renewal Party, the Independent Democratic Union, 
and the populist Center-Center Union.  Chile also has several small 
fringe-left parties, including a largely unreconstructed Communist 
Party, which are not represented in the Executive Branch or the 
Congress, but which have elected representatives in local governments.


                            Election Schedule

June 1996  Municipal elections throughout Chile

Dec  1997  Congressional elections (all Deputies and half the elected 
Senators).  In addition, barring constitutional reform to eliminate 
appointed Senators, new "institutional" Senators will also be named.

Dec  1999  Presidential elections

Mar  2000  Presidential inauguration

June 2000  Municipal elections

Dec  2001  Congressional elections (all Deputies and half the elected 
Senators)




CHAPTER IV:  MARKETING U.S. PRODUCTS AND SERVICES


                     Distribution and Sales Channels

Establishing a local subsidiary or branch office gives the best 
guarantee that the exporter will receive efficient service and 
appropriate promotion of his/her products.  Any corporation legally 
constituted abroad may form, under its own name, an authorized branch 
(Agencia) in Chile.  This method of market penetration may involve a 
considerable investment, but can be justified if sales are made in large 
volume or when local service support and/or inventory are necessary.

Another practical method is to appoint an agent or representative with 
good access to relevant markets and with technical structure.  The 
various geographic regions in Chile are far apart and their economies 
depend on diverse natural resources.  Larger representatives usually 
have branch offices in different regions.  Some large end-users, e.g. 
mining and forestry enterprises, demand quick service and specialized 
technical support. 

In spite of the elongated Chilean territory, its population 13,500,000 
is very centralized:  40 percent of the inhabitants live within 100 
miles of the capital in the Metropolitan Region, which covers 5,927 
square miles.  Most of the manufacturing, trade, and service activities 
are located in Santiago, the capital.  It is common in Santiago that 
importers and manufacturers dealing in mass distribution items 
distribute directly to large wholesalers or retail stores.

Sales outlets are mainly the traditional store fronts, but large 
department stores have penetrated the market.  During the past decade, 
several large department stores and supermarkets have been built.  Well-
designed shopping malls have recently been a booming business, not only 
in Santiago, but also in larger cities throughout Chile.  These shopping 
malls are anchored by one or two large department stores surrounded by 
attractive specialty stores or boutiques.  This is a suitable way to 
display and market textile products, electronic appliances and devices, 
sporting goods, cosmetics, office supplies, kitchen utensils, etc.

Although the Chilean government has had for the last 10 years a high 
priority to decentralize the country,  Santiago is the place for 
establishing businesses.  Santiago is near two major ports, Valparaiso 
and San Antonio, as well as to the largest Chilean international 
airport, Comodoro Arturo Merino Benitez. 

              Use of Agent/Distributor Service - Finding a Partner

Currently there are over 2,800 importers operating in Chile; some of 
them also act as export agents.  Most are small-to-medium size firms.  
Several large firms handle different lines of products and are large 
wholesalers.  Almost all the firms have their main offices in Santiago 
and branch offices throughout the country, including in the free-trade 
zones.  Other firms employ specialized travelling salespeople.

In general, foreign suppliers enter the Chilean market by appointing an 
agent, distributor or wholesaler.  This local representative, to be 
effective, must be aggressive, knowledgeable about the product, and 
well-connected with decision-makers at end user firms.  The 
representative will need to promote the products through newspapers, 
specialized magazines, radio and TV commercials.  Agent/representative 
commissions normally range from 5 to 10 percent depending on the 
product.  (For contract requirements, see "Need for a Local Attorney" in 
this Chapter.)

The U.S. firm should be thorough in selecting the agent or 
representative.  For this purpose, it should make full use of the 
several services offered by the U.S. Department of Commerce or its local 
Commercial Service District Offices.  These services include the 
Agent/Distributor Search (ADS), which helps identify interested agents 
and distributors, the Customized Market Analysis (CMA) market reports 
which can identify potential representatives and supplies a profile of 
the product in the market.  The Gold Key Service can assist exporters in 
arranging appointment schedules and support services which maximize 
their time and travel expenses.  


                                   Franchising

Since 1990, franchises have rapidly developed in Chile.  Presently, 
there are over 45-50 franchises operating in Chile with over 200 
franchisees, who during 1994 totalled sales of $110 million, accounting 
for over 10,000 direct employment positions.

Chile's good economic situation, open market attitude, credit access and 
high cultural level provides an excellent opportunity for this type of 
business.  The steady growth of the Chilean economy has increased the 
pace of daily life, creating a good market for fast-food and other 
services.  

Most franchises installed in Chile are focused on the fast-food sector, 
including McDonald's, Au Bon Pain, Domino's Pizza, Arby's, Pizza Hut, 
Kentucky Fried Chicken, Burger King and Baskin-Robbins.   However, there 
is a good and an unexplored market for franchising companies on the 
fields of automotive services, cosmetics, repair and rental services, 
cleaning (home and industrial), clothes, fitness centers, real estate 
business, hotels/motels, supermarkets and others.

There are no special laws on franchises in Chile. The Asociacion de 
Franchising de Chile (AFICH) was established in June 1995.  Its main 
purpose is to obtain approval by the Chilean congress of a franchise 
law.

So far, franchise companies operating in Chile are subject to regular 
trade laws.  The withholding tax on royalties is 35 percent; value added 
tax (VAT) is 18 percent; the import tariff is a flat 11 percent with 
only few exceptions for a few luxury products.  There are restrictions 
that affect the operations of certain franchisors, e.g., phytosanitary 
regulations that in effect ban the importation of uncooked chicken or 
chicken parts.


                              Direct Marketing

Direct marketing is well-established in the services sector, mainly in 
banking and financial institutions, seminar organizers, 
telecommunication services, etc.  Direct marketing or catalog sales are 
not yet common in the market.  The low interest shown by Chilean 
consumers is mainly based on mistrust of warranty claims and promises of 
after-sales services.  The most usual way is to hire personnel for 
telemarketing or mailing campaigns or to contract the services of a firm 
specialized in this type of service.  Data base listings are not easily 
acquired and commercial firms are cautious in keeping its customers's 
privacy.  However, some firms such as DICOM and Publi Mail do sell data 
base listings or offer complete telemarketing and mailing services.  
Publi Mail can also provide customized sales prospects listings and up-
dating upon request.

Currently Chilean consumers prefer to window-shop, walk and browse in 
shopping malls or shopping districts and personally choose the goods 
rather than purchase through catalogs.  Exchange of products in Chile is 
a complicated matter for vendors who are not inclined to return the 
money due to VAT complexity.


                               Joint Ventures/Licensing

Joint ventures and licensing arrangements require a legally established 
local partner who can be responsible for Chilean legal and taxation 
obligations.  The various administrative, commercial, profit 
distribution, and other issues involved in the association are 
established in contracts drawn up between the partners in accordance 
with Chilean law and tax regulations.

As Chile continues to establish itself in worldwide markets, its growing 
and stable economy make more sectors attractive for joint ventures and 
licensing.  These mechanisms are especially interesting when there is a 
local manufacturing or finishing capacity for products whose market 
costs are affected by shipping expenses.

Joint ventures are also attractive because they allow U.S. manufacturers 
to approach in a more effective way sectors such as consumer goods and 
clothing.  Other areas, especially where Chilean industry has increased 
its technology and productivity, may be attractive.  One typical example 
of this advantageous competitive technique is the significant increase 
in production and exports of denim wear under various brands.  In 
another example, Gucci transferred its entire leather handbag production 
after observing the qualified labor, supervision and production cost 
situation.  Other foreign apparel, cosmetics, perfumes manufacturers are 
also producing good quality, lower cost goods.


                        Steps to Establishing an Office
	
Incorporating in Chile is not expensive and the time required is short.  
Chile has no minimum local participation requirement; inclusion of local 
partners is only guided by commercial considerations.  However, a 
legally established corporation or partnership is absolutely necessary 
to do any business in Chile except for exporting to the country.

The first step for a U.S. citizen, corporation or entity wishing to do 
business in Chile on its own is to present a declaration of intent to 
invest in Chile to a Chilean Consulate, stating the nature of the 
business and the capital to be invested, simultaneously requesting a 
Permanent Residence Visa.  This confers an official residence status to 
the company, without which it will be barred from conducting commercial 
activities in Chile.

Within the framework of Chilean law, business entities can choose among 
various corporate forms, entailing somewhat different legal, taxation 
and other effects.  Since the tax treatment is substantially similar for 
the various forms of businesses, the choice of entity is often guided by 
tax considerations of the home country.


                           Selling Factors/Techniques

The most important selling factor in Chile is price.  Price-competitive 
products from Asian countries such as Taiwan and Korea far outsell more 
expensive European or North American products in the consumer product 
categories such as consumer electronics, appliances and automobiles.

Where dependability becomes more influential, such as in advanced 
electronics and construction machinery, the customer will often go for 
more expensive North American or European products based on the decision 
factors of quality and durability, technology, good customer support, 
and a strong regional service structure where applicable.  Price is the 
fundamental factor, but these other factors all influence the purchase 
decision, with the order of importance depending on the industry, the 
customer and the application.

Many of the larger representatives have regional offices in addition to 
their Santiago headquarters, or work with commissioned salesmen.  It is 
part of the national idiosyncrasy that more technical product categories 
are generally sold by visiting salesmen rather than in showrooms or 
retail outlets.  Technical salesmen demonstrate products to clients who 
prefer to be visited in their offices or are too far from sales points.  
These salesmen are often backed up by more thoroughly trained technical 
sales support personnel during client visits.

Payment for major purchases is generally on a net 30 days basis when 
invoices are used.  Over-the-counter purchases are done in cash, check 
or credit card.  Credit terms are one sales technique used by most 
retailers.  Major department stores and chains issue their own credit 
cards.


                        Advertising and Trade Promotion

Television, radio, newspaper and magazine advertisement are used heavily 
to reinforce in-store merchandising methods.  Private agencies handle 
the largest share of advertising.  Most of these agencies belong to the 
Asociacion Chilena de Agencias de Publicidad (Chilean Association of 
Advertising Agencies), ACHAP, located at Guardia Vieja 181, Of. 302, 
Tel: (56-2) 231-0935, Fax: (56-2) 251-2354.

Spending on non-radio advertising during the January-April 1994 period 
totalled $210 million, an increase of 28.8 percent over the same period 
in 1993.  Of this, 56.9 percent went to television, 33.7 to newspapers, 
4.9 percent for billboards (road signs, subway posters, etc.), and 4.5 
percent to magazines.  Radio publicity also absorbs significant funds.

Chile uses the NTSC system for TV broadcasting.  Six TV channels 
broadcast in Santiago; several of these also cover the principal cities 
throughout the country.  Television Nacional, the government-owned 
network, covers 97 percent of Chile's territory, and has traditionally 
waged a very close contest for the top audience rating with Channel 13 
Television Universidad Catolica.  Both hover around 14 points (each 
point represents approximately 40,000 people) from Monday to Friday and 
Sunday (other channels score 5 or lower).  Channel 13 doubles TV 
Nacional's rating on Saturdays.  All channels must be financially self-
supporting.  Cable television has been rapidly covering Santiago over 
the past two years, and exposes subscribers to major stations from 
several American and European countries, including CNN, TNT, HBO, CNBC, 
Discovery, Fox, and ESPN from the U.S.

Of the 144 AM stations and 253 FM stations registered nationwide with 
the Asociacion de Radiodifusoras de Chile (ARCHI, Chilean 
Radiobroadcasters' Association), 19 AM and 27 FM stations are located in 
the nation's capital.  Other stations are also licensed to transmit, but 
are run by universities or other not-for-profit organizations and are 
not members of ARCHI.  Major networks for commercial advertisement are 
Portales, Mineria, Agricultura, Radio Chilena, and Cooperativa.  Major 
musical and commercial oriented FM stations are El Conquistador, Andres 
Bello, Galaxia, and Futuro.

There are about 30 newspapers throughout the country.  Six daily 
newspapers in Santiago have a combined circulation of approximately 
700,000.  The main one is El Mercurio:

-	EL MERCURIO S.A.P. 
	Santa Maria 5542, Las Condes; Santiago, Chile
	Tel: (56-2) 228-7048
	Fax: (56-2) 228-9262

El Mercurio has weekly inserts on agriculture and construction, and a 
monthly insert on computers.  It also puts out special inserts on 
various topics, including vehicles, throughout the year.

Other important independent newspapers are Las Ultimas Noticias, La 
Segunda, and La Tercera.  La Nacion is a state-owned daily newspaper, 
and La Epoca was founded by Christian Democratic activists.  Estrategia 
and El Diario are the two financial tabloids published on working days.

The most widely-read weekly magazines are Que Pasa, a newsweekly that 
covers current events; Hoy, a newsweekly owned by a Christian Democratic 
activist; and Cosas, a bi-weekly, socialite-type magazine which carries 
interviews and photo coverage of national and international figures.  
Monthly magazines such as The South Pacific Mail and America Economia 
(the latter edited in Chile and sold throughout Latin America) reach a 
more selective audience.


                              Pricing Products

Generally, an 11 percent tariff is levied on the CIF value of all 
imported products.  This and a Value Added Tax of 18 percent are paid by 
the importer and not by the supplier.  There are some exceptions: 
government entities do not pay these fees, and some luxury goods have 
higher tariffs.  Imports from countries with which Chile has bilateral 
trade agreements are covered by different, preferential tariff 
schedules.

Pricing starts with a fairly straightforward formula based on CIF costs 
plus these generally constant ship-to-warehouse expenses.  Gross margins 
for consumer goods are generally in the 30-50 percent range or more for 
direct sales to consumers, or 20-30 percent each for the 
importer/distributor and the retailer when a distribution chain is in 
place.  Final price for mass-distributed U.S. items should be 
competitive with imports from Asia and countries like Brazil.  Higher-
priced items must identify niche market segments to prosper.  More 
specialized products are sold by stocking representatives, or by 
commissioned agents who generally earn 5-10 percent on their sales.


                           Sales Service/Customer Support

Customer service and support are fundamental to successfully penetrate 
and retain market segments other than consumer products.  The distance 
and communications hurdles separating local buyers from foreign 
suppliers are a perpetual worry, as many buyers have been left stranded 
after buying a product with insufficient or no post-sale technical 
support.  

In addition to the fact that consumer rights are slowly becoming a real 
issue, any product with an extended lifetime and a need for operator 
training, for consumables and/or for technical service must have this 
support provided by a stable local company with solid support and 
backing from the overseas supplier.  Bad reputations acquired by 
disregarding customer needs are hard to shake.


                               Selling to the Government

Government entities usually do their own procurement.  Chilean law calls 
for public bids for large purchases, although procurement by negotiation 
is permitted in certain cases.

Foreign and local bidders on government tenders must be registered with 
the Chilean Direccion de Aprovisionamiento del Estado (Bureau of 
Government Procurement Supplies), Amunategui 66, piso 4, Santiago, 
Chile.  They must also post a bank and/or guarantee bond, usually 
equivalent to 10 percent of the total bid, to assure compliance with 
specifications and delivery dates.  Bidding is best done through a local 
agent who is registered, well connected, and familiar with the bidding 
procedures (see Appendix C for list of government agencies).


                   Protecting Your Product from IPR Infringement

Chile belongs to the World Intellectual Property Organization, and 
patents, trademarks, industrial designs, models and copyrights are 
protected in Chile by the provisions of the International Convention for 
the Protection of Industrial Property (the Paris Convention).  Chile's 
intellectual property regime is generally compatible with international 
norms, with a few exceptions.  Industrial designs and models are 
protected for a non-renewable period of 10 years.  The registration of 
trademarks is also valid for renewable periods of 10 years.

In 1992, the Chilean Congress approved legislation that extends the term 
of copyright protection from 30 to 50 years.  Despite the presence of 
copyright protection, however, industry sources estimate that copyright 
infringement in Chile cost U.S. firms $24 million in 1991, $15 million 
of which was associated with the piracy of computer software.  An 
estimated 80 percent of all software installed in Chile is pirated.  
Software piracy should decline as local suppliers adopt more vigorous 
legal strategies to protect their rights.

A common problem faced by foreign companies that wish to begin 
operations in Chile is that foreign trademarks may already be registered 
by other individuals or companies.  Chilean courts have been supportive 
in cases where the trademark has been "stockpiled" but gone unused, but 
less so in cases where investments were made in use of the trademark.  
In either case, proceedings can be lengthy and expensive.  The foreign 
firm should make a business decision whether to take legal action or 
negotiate with the party who registered the trademark.  A trademark 
should be registered as soon as the exporter/investor has any intention 
of doing business in Chile.  Ownership of the trademark is not 
prejudiced by lack of use in cases where the registered party makes use 
of the mark in other countries, and trademarks may be perpetually 
registered in periods of ten years at a time.  Firms wishing to register 
their trademarks should do so at the Ministry of Economy, Departamento 
de Propiedad Industrial.


                           Need for local attorney

Given that contracts with Chilean firms must abide by Chilean laws, U.S. 
companies entering the Chilean market should have all legal documents 
drawn up or checked by a qualified local attorney.  The Commercial 
Section of the U.S. Embassy in Santiago can supply a list of attorneys 
practicing in Santiago.

Suppliers can establish their legal relationship with a local 
representative in one of two ways:  (1) an ordinary work contract 
regulated by Labor Law 19.010, for which some legal guidance is 
advisable; or (2) the more customary commercial or commission contract, 
where the parties establish their own terms and conditions, and are not 
bound by requirements of LL-19.010, especially its severance conditions.

To avoid legal expenses under a commission contract, the supplier 
should:
(a) establish specific performance conditions for the representative; 
(b) decide upon ground rules for termination; (c) determine territory to 
be covered by the representative, as the supplier may later wish to 
appoint additional agent(s) elsewhere in Chile; and (d) have local 
counsel review the text to ensure its consistency with Chilean legal 
standards.

In establishing a contractual relationship with a local representative, 
the U.S. supplier should ascertain its contractual liability vis-a-vis 
the representative under Chile's labor law.


                            AmCham Chile

The American Chamber of Commerce of Chile (AmCham) can be helpful in 
doing business in Chile.  A non-profit organization with over 400 
corporate members and over 1000 individual members, AmCham conducts a 
variety of activities designed to promote trade and investment, and 
provides a good way to meet U.S. and Chilean businesspeople.  It is also 
active in lobbying, and is working aggressively on Chilean accession to 
NAFTA.  For more information on AmCham and its activities, please call 
Claudio Garcia, President, or Francisco Bernales, General Manager, tel. 
(562) 206-6604 or (562) 206-4163, fax (562) 672-7991.


CHAPTER V:  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS

      Best Prospects for Non-Agricultural Goods and Services
                      (ranked by growth rate)
                       (millions of dollars)
Sector           Total     Total      U.S. Imports    Market
                 Market    Imports    (1995)          Growth (%)
                 (1995)    (1995)                     (1996-1998
1. Energy Product.
    Equipment     700       462         56               35

2. Franchising    110        89         66               35

3. Pollution
    Control       509       506        202               23

4. Telecom.
    Equipment     552       502        216               20

5. Sporting/
    Rec. Goods    182      146          36               20

6. Computers &
    Peripherals   470      466         246               15

7. Mining Equip.  697      633         214               15

8. Medical
    Equipment     132      132          67               12

9. Port Equipment 266      268         149                8


1
Energy Production Equipment
ELP

The energy sector is one of the most benefitted by Chile's economic 
growth.  Several energy company executives and experts believe that 
feasibility studies underway will lead to future projects and 
construction totalling $3 billion by the year 2000.

The Chilean Energy Commission reports over 24 energy projects which 
could be operational within 8-10 years.  Fifteen of these projects are 
for hydroelectric power generation.  U.S. producers will benefit from 
the current lower value of the U.S. dollar since the majority of 
purchases are negotiated in dollars.

Private investment projects are estimated at $600 million in 
hydroelectric generating plants and $600 million in thermoelectric 
plants.  Demand is increasing for gas-fueled thermoelectric plants, an 
area where the U.S. has the leading technology.  A new pipeline to 
supply gas from Argentina, for which a bid will awarded shortly, should 
also increase demand for gas-fired plants.

The Colbun-Machicura company, controlled by the Chilean Government 
entity Corporacion de Fomento de la Produccion (CORFO), is also planning 
to build a new plant near Valparaiso, with a generating capacity of 350 
MW and investment of $220 million.


Most promising subsectors:
                       1995-1996
                 (millions of dollars) 

Gas generators               26
Generating sets              20
Heat exchangers              18

Projected investment by major energy ventures (in millions of dollars):

Chilectra                    35
Colbun                      220
Chilgener                   230
Edelnor                      70
Enersis                     680


                         DATA TABLE
                    (millions of dollars)

                       1994         1995            1996

Total market size      350           700            1400
Local production       n/a           n/a            n/a
Exports                 35            31              39
Imports                231           462             924
Imports from U.S.       28            56             112

The above statistics are unofficial estimates.


2  
Franchising
FRA

Franchising in Chile is in its initial phase.  It has rapidly expanded 
since 1990, and presents fresh and challenging ground compared to other 
Latin American countries.  The most developed segment of franchising in 
Chile is fast food.  Service franchises are beginning to develop and 
provide an excellent market because, in general, services in Chile 
(maintenance and repair services, for example) are performed by small, 
inefficient and unreliable shops and/or individuals that have not had 
proper training and don't guarantee their work.  Undoubtedly, U.S. 
service franchises can provide efficient, timely and reliable service, 
meeting the demands of an increasingly fast-paced, modern and growing 
city.  Santiago (and, later, the rest of the country), is coming to a 
point in which its population has less and less time available and 
spends more time commuting, leaving less time for domestic chores.

Not only Santiago is promising for franchising; the most important 
regional cities are growing as well.  Shopping malls are being built, 
and the fast food industry is rapidly establishing a presence.  Regions 
provide an excellent future market even though U.S. franchisors must 
remember that they can't expect franchisees to cover the entire national 
territory immediately.  National coverage will probably be a long 
process that will occur together with the modernization of cities 
throughout the country.

Growth in the franchising sector is projected at 35 percent for 1996.  
About 61 percent of existing franchises are of U.S. origin; U.S. 
products and services enjoy great receptivity and reputation.  The U.S. 
is viewed as the leader in franchising.

While Chilean law provides good conditions for foreign firms to operate 
locally, no special law exists for franchise companies, which are 
subject to regular trade laws.  The Asociacion de Franchising de Chile 
(AFICH), recently established, has as one of its main objectives the 
obtaining of special franchise legislation.  The current withholding tax 
on royalties, which are limited to 5 percent of revenues, is 
35 percent.

DATA TABLE 

There are no official figures on franchise relating to sales or 
investment.  AFICH estimates that the total market is $110 million.  The 
Embassy estimates there approximately 52 franchises currently operate in 
Chile, with 220 franchisees.  In 1994, sales totalled approximately $110 
million.  About 10,000 are directly employed.  Approximately 61 percent 
of franchising businesses are of U.S. origin, 21 percent are of third 
country origin, and 17 percent are Chilean.  About half of U.S. 
franchises operating in Chile are found in the fast food industry.  


3 
Pollution Control Equipment
POL

The new Environmental Law, passed in March 1994, established a general 
environmental framework.  The full implementation of the law requires 
specific rules and regulations which are still in process of study and 
evaluation.  Chile will provide tremendous demand for pollution control 
equipment once the specific regulations are put into effect and the 
environmental authorities begin tightened enforcement.  Growth of about 
30 percent is forecast for the next three years.

As the Chilean economy continues to grow, new businesses will emerge 
that will require construction of modern plants.  These new plants will 
incorporate state-of-the-art environmental technology in order to have 
clean production processes.   The import demand for pollution control 
equipment will be generated by the industrial sector, which will have to 
modify production procedures to make them environmentally clean.

Chile, with a few exceptions, does not manufacture pollution control 
equipment.  U.S. products are highly regarded because of their high 
technology and quality.  Japan and European countries are strong 
competitors offering soft loans, grants, and training.

Although most investments in pollution control equipment will take place 
only after the Chilean government implements the specific regulations, 
U.S. manufacturers should be prepared to take advantage of this 
promising market and establish contact with potential partners and/or 
major end-users.

                 DATA TABLE
                 (millions of dollars)

                             1994         1995           1996

A. Total market size          392.0       509.0          661.7
B. Total local production       2.0         3.0            3.6
C. Total exports                0.0         0.0            0.0
D. Total imports              390.0       506.0          658.1
E. Imports from the U.S.      156.0       202.0          263.2

The above statistics are unofficial estimates.


4 
Telecommunications Equipment 
TEL

The telecommunications sector has grown at an annual rate of over 14 
percent for the past six years.  Industry experts estimate an annual 
growth of 20-25 percent for the next five years, with imports growing at 
the same rate.  Local production is small.  The main competitors to U.S. 
suppliers are Japan and some European countries, such as France, Spain 
and Germany.  In 1994, U.S. suppliers exported $154 million, a market 
share of 38 percent compared to 25 percent in the previous year. 

The Chilean telecommunications sector is completely open.  Any local or 
foreign company that wants to operate in the market can request 
authorization from the Undersecretariat of Telecommunications, the 
primary authority for supervising and regulating all telecommunications 
services.  The Telecommunications Law, promulgated March 1994, was 
designed to promote competition, encourage the incorporation of new 
technologies and value-added services, and provide incentives for 
foreign and domestic investment.

The telecommunications sector in Chile will continue to expand because 
of the absence of barriers, the demand for continuous upgrading of 
existing equipment and networks, and the interest of foreign investors 
in establishing alliances with local partners to provide services in 
other Latin American countries.  Chileans wish to enjoy advantages of 
state-of-the-art technologies, and multinational companies, that require 
advanced telecommunications systems are setting up their offices in 
Chile to manage the Latin American region.   

Chilean telecommunications firms have announced investment plans for $3 
billion for the next five years.  Most of the local companies are 
interested in internationalizing their operations to provide global 
communications services, including long distance, basic telephony, 
cellular, cable television and personal communication services.  The 
companies' major expansion programs will be concentrated in these areas.

                    DATA TABLE
             (millions of dollars)
                           1994       1995           1996

A. Total market size       447.0      551.6          681.6
B. Total local production   46.0       50.6           55.6
C. Total exports             2.2        2.9            3.7
D. Total imports           401.3      501.5          626.5
E. Imports from the U.S.   154.8      215.6          301.8

The above statistics are unofficial estimates.  


5 
Sporting Goods/Recreational Equipment
SPT

The sporting goods and recreational products market in Chile is steadily 
growing due to the sustained improvement of the economic conditions in 
the country.  More and more people who didn't have access to sports, 
camping, outdoor and recreational activities are now able to participate 
at different levels.  Financially and technically, these levels range 
from very simple to highly sophisticated.

As sports and outdoors recreational activities increase, the market for 
sporting good products grows steadily, with annual growth of 20 percent 
predicted for the next three years.  This increase is fueled by the 
combination of improved economic conditions and the awareness of the 
general public of the need to become and remain fit and healthy, 
together with a back-to-nature trend instigated by environmental 
awareness.

Sporting goods of U.S. origin are regarded as of excellent quality, but 
imports are hindered by higher prices relative to those of Asian 
competitors.  Many products imported from the Far East incorporate U.S. 
technology and license rights, but manufacturing in countries with lower 
labor costs results in highly competitive prices.  However, U.S. market 
share increased by 23 percent in 1994.  Local production is not 
significant, and includes a small range of products.  However, there is 
increasing interest in manufacturing locally under license agreements, 
since labor costs in Chile are low compared to the United States.

Best prospects for U.S. sporting and recreational products and equipment 
are  motorboats, fitness equipment, mountain bikes, camping and outdoor 
activity equipment.  There is a proliferation of eco-tourism and 
adventure-tourism companies that mainly offer river rafting, canoeing 
and kayaking as well as mountain climbing.  The water-related sports 
market has grown significantly in the last four years due to the 
construction of recreational resorts, some of which include marinas.  
There are still projects to be developed in this area.


                 DATA TABLE
                 (millions of dollars)

                          1994      1995         1996

A. Total market size       148      182          218
B. Total local production   49       59           71
C. Total exports            19       23           29
D. Total imports           118      146          176
E. Imports from the U.S.    28       36           48

The above statistics are unofficial estimates.  


6 
Computer & Peripherals
CPT

Chile is a good and growing market for U.S. suppliers of computers and 
related equipment.  Chile, although a small market, is one of the most 
developed and open economies in Latin America.  With Chile's booming 
economy, it is expected that the use of computer equipment will 
experience a steady growth, over 15 percent per annum, as productivity 
rises and industries expand.  Chile has the largest per capita ownership 
of PC's in Latin America with 3.4 PC's for every 100 people.  The U.S. 
figure is 30 PC's per 100 people.

Chilean imports of information technology products and related equipment 
totalled approximately $700 million in 1994.  Of this amount, 
approximately $410 million represent imports of computer equipment.  
Computer sector growth is estimated to reach 19.8 percent through 1997.  
Personal computers and workstations show the highest demand, with a 23 
percent growth rate, followed by mid-size equipment, which will grow by 
7 percent.  Industry executives have predicted that in one to two years, 
only four brands will remain at the top of the personal computer market.  
According to these executives, during this period, the number of 
competitors will decrease because Chile, being a small market, is unable 
to acquire large quantities, resulting in low profit margins for 
importers.
  
The explosive growth in the personal computer market and the emerging 
home market is such that these markets now dominate 50 percent of 
computer sector sales.  Chile presents excellent sales opportunities for 
U.S. products and services, which Chilean consumers value for their high 
quality and technology, and excellent support service.  A Free Trade 
Agreement (FTA) between Chile and the United States promises to give 
U.S. suppliers a key competitive advantage: gradual elimination of the 
11 percent duty, currently added to the cost of imported goods.

Chile's major supplier of computers and peripherals is the U.S., which 
accounts for over 50 percent of the market.  The main competitors are 
Japan, Taiwan and France. 

                     DATA TABLE
                (millions of dollars)

                            1994        1995      1996

A. Total market size         410         470      540
B. Total local production      3           4        5
C. Total exports               3           4        5
D. Total imports             407         466      535
E. Imports from the U.S.     230         246      264

The above statistics are unofficial estimates.  


7
Mining Industrial Equipment
MIN

It is difficult to derive total imports of mining equipment from local 
available statistics since the same equipment is used in several 
industries and is lumped in harmonized codes for equipment common to all 
industries.  Nevertheless, reliable sources have placed imports at $550 
million and think that an estimate of growth 15 percent for 1995 - 1997 
is appropriate, if conservative.

The statistics include the following equipment:  heavy mining trucks, 
large truck tires, levellers, loaders, compressors, hoists, drilling 
equipment, excavators and various smaller machines.  U.S market share is 
31 percent, with Brazil next at 18 percent, and Japan following with 
less than 15 percent.  Many large mining projects will begin 
construction through 1997.  Major mining projects are listed in Chapter 
V under Significant Investment Opportunities.

U.S.-made products are appreciated by local end-users for their quality, 
the high technology incorporated, and compliance with delivery dates, 
which in this particular sector is a critical factor.  There is an 
excellent opportunity for U.S. mining equipment manufacturers to 
participate in Expomin '96, an international fair well-known in Latin 
America.  For more details on this fair see Appendix G:  Trade Event 
Schedule.

                      DATA TABLE
                 (millions of dollars)

                          1994      1995      1996

A. Total market size       605      697       797
B. Total local production   55       92       106
C. Total exports             8       14        23
D. Total imports           550      633       728
E. Imports from the U.S.   185      214       246

The above statistics are unofficial estimates.  


8
Medical Equipment
MED


The Chilean Government places a high priority on the improvement of the 
national public health system.  This system provides health care for 
approximately 70 percent of the Chilean population, or nearly 10 million 
people.

Chile's total 1994 imports of medical equipment and supplies were 
approximately $120 million.  It is expected in 1995 that this sector's 
imports will reach $130 million, with an estimate growth of 12 percent 
for 1996 and increased growth thereafter.

A large number of private and some public sector hospitals are expanding 
their present facilities or projecting the construction of new ones.  
Private hospitals and clinics have the most state-of-the-art equipment 
in Chile and the financial resources to upgrade equipment and services.

The U.S. has been for years Chile's most important supplier of medical 
equipment.  U.S. main competitors are Japan, Germany and France.    


               DATA TABLE
          (millions of dollars)

                             1994      1995      1996

A. Total market size          120      132       148
B. Total local production     n/a      n/a       n/a
C. Total exports              n/a      n/a       n/a
D. Total imports              120      132       148
E. Imports from the U.S.       57       67        75

The above statistics are unofficial estimates.



9
Port Equipment
PRT


Chile's export sector is very dynamic.  According to government sources, 
by the year 2000 Chile's exports will reach $20 billion, which means 75 
percent expansion of its foreign trade.  The fact that 95 percent of 
Chile's foreign trade is carried by ship, as well as the growing demand 
from neighboring countries to use Chilean ports, has motivated the 
government to review the capacity of ports infrastructure and services.  
This should lead to growth of 8 percent per year in the market for port 
equipment.

Under current law, the Chilean Port Authority (Emporchi) owns and 
operates ten of the most important ports, handling some 78 percent of 
general cargo and 22 percent of the bulk cargo.  The remaining 22 ports 
are privately owned.  They mostly handle exports and importation of 
inputs for the operations of their owners.
The government is currently working on modifications to Emporchi's law, 
by which Emporchi can give in concession its terminal operations, 
including the right to build and manage the entire operation of the 
ports.  This initiative may open a new field for private investors and 
U.S. suppliers of port equipment.

Likewise, the Chilean government is considering decentralizing 
Emporchi's ten ports by creating individual business enterprises capable 
of competing among themselves to attract private investment and to 
respond to local demands.  Each port enterprise would have the ability 
to grant administrative concessions to private operators to build new 
terminals on state property.

According to sources consulted, Chile will require an investment of over 
$300 million in new terminals and expansion of existing ones for the 
next three years.  The market is principally supplied by imports.  All 
the principal port equipment brands worldwide are locally represented.  
The U.S. port equipment is well- positioned in the local market.  For 
the past two years, the U.S. has ranked first with an average of 50 
percent of all imports, followed by Japan with an average of 13 percent.  
Since 1991, local ports have shown a tendency to use more reachstackers 
and portainers.  Market access for imports of port equipment is barrier-
free.  Used capital goods can be imported and are exempt from the 
payment of the tax normally imposed on the importation of used equipment 
and products, which is 50 percent of the regular 11 percent import duty.             



                       DATA TABLE
                  (millions of dollars)

                            1994        1995         1996

A. Total market size        246.60      266.34     287.64
B. Total local production*    1.60        1.73       1.87
C. Total exports              2.70        2.90       3.13
D. Total imports            247.70      267.51     288.91
E. Imports from the U.S.    138.00      149.04     160.96

The above statistics are unofficial estimates.  




             Best prospects for Agricultural Products
                    (millions of dollars)

A.  Rank:             1
B.  Name of sector:   Grains
C.  PS&D Code:        11

                                 1994        1995        1996

D.  Total market size            575.0      569.0       569.0
E.  Total local production       382.0      381.0       379.0
F.  Total exports                  0.0        0.0         0.0
G.  Total imports                193.0      188.0       190.0
H.  Total imports from U.S.       48.0       57.0        61.0
I.  Exchange rate                  420        385         370

Comments:  Grains (Wheat, Corn & Rice).  Chilean production of basic 
grains has stagnated in recent years in the face of reduced 
competitiveness.  Although wheat is subject to import surtaxes (price 
bands), U.S. grain sales continue to have solid growth prospects in 
Chile.



A.  Rank:               2
B.  Name of sector:     Process. Fruit & Veg.
C. PS&D Code:           16

                                      1994        1995       1996

D.  Total market size                  121.0      128.0      139.0
E.  Total local production             380.0      415.0      440.0
F.  Total exports                      314.0      345.0      365.0
G.  Total imports                       55.0       58.0       64.0
H.  Total imports from U.S.             10.0       11.0       12.0
I.  Exchange rate                        420        385        370

Comments:  Chile is a growing market for high value products, reflecting 
expanded income and changes in consumer habits.


A.  Rank:            3
B.  Name of sector:  Snack Foods
C.  PS&D Code:       24

                                 1994         1995       1996

D.  Total market size           62.0         67.0        80.0
E.  Total local production      80.0         86.0        98.0
F.  Total exports               50.0         55.0        58.0
G.  Total imports               32.0         36.0        40.0
H.  Total imports from U.S.      6.0          8.0        10.0
I.  Exchange rate              420          385         370

Comments:  Chile is a growing market for U.S. snack foods, reflecting 
expanded incomes and changes in consumer habits.


A.  Rank:            4
B.  Name of sector:  Raw Cotton
C.  PS&D Code:       04

                                1994         1995       1996

D.  Total market size            38           40         43
E.  Total local production        0            0          0
F.  Total exports                 0            0          0
G.  Total imports                38           40         43
H.  Total imports from U.S.       3            4          5
I.  Exchange rate               420          385        370

Comments:  U.S. producers are at a disadvantage to those of Latin 
American suppliers because of preferential duties for ALADI countries.  
Nevertheless, sales have increased as the Chilean industry U.S. quality 
advantages.


A.  Rank:            5
B.  Name of sector:  Pet Foods
C.  PS&D Code:       24

                               1994         1995       1996

D.  Total market size           4.9          5.0        5.4
E.  Total local production      3.0          3.0        3.0
F.  Total exports               0.0          0.0        0.0
G.  Total imports               1.9          2.0        2.4
H.  Total imports from U.S.     1.8          2.0        2.3
I.  Exchange rate             420          385        370

Comments:  Demand for balanced feed, particularly pet food, has been 
increasing steadily in recent years.


A.  Rank:            6
B.  Name of sector:  Tree Nuts
C.  PS&D Code:       14

                                 1994         1995       1996

D.  Total market size            10.3         10.5       11.0
E.  Total local production       35.0         36.0       36.0
F.  Total exports                25.0         26.0       26.0
G.  Total imports                 0.3          0.5        1.0
H.  Total imports from U.S.       0.3          0.5        0.9
I.  Exchange rate               420          385        370

Chilean consumption of tree nuts is still low.  Expanded market 
promotion should result in increased U.S. sales.


A.  Rank:            7
B. Name of sector:   Fresh Deciduous Fruit
C. PS&D Code:        09

                                   1994         1995       1996

D.  Total market size              336.0        349.0      397.0
E.  Total local production       1,122.0      1,144.0    1,200.0
F.  Total exports                  820.0        830.0      840.0
G.  Total imports                   34.0         35.0       37.0
H.  Total imports from U.S.          0.0          0.0        0.0
I.  Exchange rate                  420          385        370

Comments:  Currently, imports of U.S. fruits are restricted as a result 
of Chilean phytosanitary regulations.  USDA is working to resolve this 
issue and hopes to gain access for U.S. importers in the near future.




1994 Agricultural Good Imports

           Trade -- Table 2

                                    1994

Total (from world)                 930.0 
From the U.S.                      120.0 
U.S. Share of Agricultural Import   13.0%
Agricultural Goods Balance
with the U.S.                      810.0 




Principal 1994 U.S. Agricultural Exports to Chile
                   Trade -- Table 3

                               1994

Corn                           41.0
Butter                          6.0
Sugar                           5.0
Wheat                           5.0
Seeds                           5.0
Tea                             4.0



Principal 1994 U.S. Agricultural Imports

                    Trade -- Table 4

                              1994

Tables Grapes                290.0
Peaches & Nectarines          35.0
Wine                          35.0
Plums                         23.0
Pears                         16.0
Vegetable Seeds               14.0
Apple Juice                   11.0


Significant Investment Opportunities

List of Foreign Investments-Major Projects-Mining Sector:


Copper

Project     Investor/Country     Approx. Invest.     Product     Date
                                 U.S. million                   Start
 
Sta.Ines    Falconbridge/Canada                      Copper
Collahuasi  Minorco/Luxembourg       3,000           Cathodes    1998

Mamina      Codelco/Chile
            Inco Ltda./Canada           TBD          Copper      TBD

El Abra     Codelco/Chile                            Copper
            Cyprus Amax (USA)         1,000          Cathodes    1998

Tulina      Minera Mahogany/Canada                   Copper
            Minera Northern/USA           7          Cathodes    TBD

Leonor      Equatorial Mining                        Copper
            Australia                   100          Cathodes    1997

Santa Barbara
(Modern.)&  Empresa Minera              160           Copper     1996
Mantos      Mantos Blancos              --            Cathodes     --
Blancos     Anglo America/S.Africa      --               --        --

Lomas
Bayas       Gibraltar Min./Canada       157           Copper     1997

Santa       Outukumpu/Finland           100           Copper      TBD
Catalina           Conc.                              --

Fundicion   Fundicion Refimer            30           Blister    1996
La Negra    American Barrick/Canada     --            Copper       --

Chimborazo  Cyprus/USA                  TBD           Copper      TBD

Zaldivar    Outukumpu/Finland           600           Copper     1995
            Placer Dome/Canada                        Cathodes     --

Escondida   BHP Utah/Australia        1,100           Copper &   1994
in Op. &    RTZ/U.K.                                  Gold         --
Expansion   Jaco/Japan                  520           --         1997
            I.P.C.                      --            --           --

Las Luces   Soc. Las Cenizas/Chile       11           Copper     1996
            Citibank/USA                --            Concent.     --

Cabrito     Codelco/Chile               --            Copper      TBD
            North Broken Hill           --            (Study)     TBD
            Australia

Cerro       Codelco/Chile                             Copper
Guante      Noranda Minerals            --            (Expl.)     TBD
            Canada

Manto       Empresa Minera Mantos       178           Copper     1996
Verde       Anglo American/S.Africa     --            Cathodes     --
            (under construction)

El Relincho Outokumpu/Finland           TBD           Copper      TBD
            (under exploration)         --            --           --


Gold andSilver

Refugio     Bema Gold/Canada            130           Gold       1996
            Amax Gold Refugio/USA       --                         --
            (under construction)


Aldebaran   Arizona Star Resource/Canada
            Minera Anglo American 
            South Africa
            (under exploration)          65           Gold        TBD

Agua de     Codelco/Chile
La Falda    Homestake/USA
            (under exploration)         TBD           Gold        TBD
Cerro Coya  Codelco/Chile               TBD           Gold        TBD
            Santa Fe Pac.Gold/USA       --            --           --
            (under exploration)

Puren       Codelco/Chile               TBD           Gold        TBD
            Placer Dome/Canada                                     --
            (under exploration)

Chimberos   Placer Dome/Canada            7           Silver     1996
            (under study)

Nevada      Cia. Minera San Jose
            American Barrick/Canada   
            (under study)               168           Gold       1997

Tambo       Cia. Minera San Jose              
            American Barrick/Canada   
            (under construction & exp.) 105           Gold       1995

Andacollo   Andacollo Gold Inc.         
Gold        La Serena Inc.                         
            Dayton Mining Co./Canada     50           Gold       1996


Non-Metallic

Yolanda     KAP Resources/Canada                      Iodine
            British Columbia Ltd.         5           Nitrate    1996
            Canada



For additional information please contact:

Source:   Comision Chilena del Cobre "COCHILCO"
      Agustinas 116, Piso 4
      Santiago, Chile
      Tel:  56/2/672-219
      Fax:  56/2/672-3584
      Contact:  Juanita Gana, Vice President

      Corporacion Nacional del Cobre
      Huerfanos 1120
      Santiago, Chile
      Tel:  56/2/690-3000
      Fax:  56/2/690-3059
      Contact: Juan Villarzu, Executive President

      Comite de Inversiones Extranjeras
      (Foreign Investment Committee)
      Teatinos 120, Piso 9 
      Santiago, Chile
      Tel:  56/2/698-4254
      Fax:  56/2/698-9476
      Contact: Eduardo Moyano, Vice President

      Ministerio de Mineria
      Teatinos 120, Piso 9 
      Santiago, Chile
      Tel:  56/2/671-4373
      Fax:  56/2/698-9262
      Contact: Benjamin Teplizky, Minister of Mining



CHAPTER VI:  TRADE REGULATIONS AND STANDARDS


                                    Trade Barriers

Chile generally has few barriers to imports or investment.  Foreign 
firms operating in Chile enjoy the same protection and operate under the 
same conditions as local firms.  The Chilean tariff rate is currently 11 
percent on nearly all products from most countries, although many 
products from Latin American countries with which Chile has trade 
agreements enter with lower duties.  Imported automobiles are also 
subject to luxury taxes based on value (80 percent on the value above 
$9700, which is adjusted annually for inflation) and engine size (a 
sliding scale).  Other imported luxury goods such as yachts, some types 
of jewelry, and others are also subject to luxury taxes.  Duties on 
capital goods purchased for use in export production may be deferred for 
a period of seven years and waived under some circumstances.  Imports 
are subject to the same 18 percent Value-Added Tax (VAT) as are domestic 
goods.

Chile's most significant nontariff barrier is the import price band 
system for certain agricultural commodities, which currently applies to 
wheat, wheat flour, vegetable oils, and sugar.  Variable duties are 
levied on imports of these commodities in order to keep domestic prices 
above the five-year average of international prices.  Imports of U.S. 
fruits are restricted as a result of Chilean phytosanitary regulations.  
Certain industries also claim that aspects of Chilean law hurt their 
sales.  For example, pharmaceutical companies say that current law does 
not provide enough protection, and liquor producers believe their 
products are discriminated against.

                               Customs Valuation

The Chilean customs valuation is based on the normal value of 
merchandise, without special discounts, plus freight and insurance 
(CIF).  Used goods are valued by the customs service according to the 
current new value of similar merchandise, discounting 10 percent per 
year of use, up to a 70 percent discount. 

                                Import Licenses

According to legislation governing the Central Bank since 1990, import 
licenses are granted as a routine procedure.  Licenses are required for 
weapons and pharmaceuticals.  Licensing requirements are maintained 
largely as a statistical gathering mechanism, not as a control.

                              Export Control

Chile applies export controls through the requirement of an export 
license, as well as phytosanitary and quality controls on certain 
products controlled by the National Health Service (Servicio Nacional de 
Salud, SNS), the Agricultural and Livestock Service (Servicio Agricola y 
Ganadero, SAG), and the National Fishing Service (Servicio Nacional de 
Pesca, SERNAP).  Again, the licenses are required more as a means of 
gathering statistics.

                           Import/Export Documentation

Chile's Central Bank requires importers to obtain a registration 
certificate for goods valued over $3,000.  Exporters must fill out a 
registration certificate when exporting goods valued over $2,000 FOB.  
This is to help the government gather trade data.  Other commercial 
forms used by both local importers and exporters are: commercial 
invoice, certificate of origin, bill of lading, freight insurance and 
packing list. 

                            Temporary Entry

Temporary imports of goods are authorized for government-approved 
exhibitions and for temporary demonstration purposes.  For Chilean 
government-approved exhibitions, no duty or VAT is levied, and goods may 
remain in the country up to six months, but must be kept in a warehouse.  
Goods imported for temporary demonstration purposes require the resident 
end-user or potential purchaser to obtain a temporary admission 
certificate from Chilean customs authorities, and are taxed based upon 
the number of days they are in the country.    



                       Labeling, Marking Requirements

Imported products customarily consumed by the public must display the 
country of origin on them before being sold in Chile.  Packaged goods 
must be marked to show the quality, purity, ingredients, or mixtures, as 
well as the net weight or measure of the contents.

Canned or packaged foodstuffs imported into Chile must bear labels in 
Spanish for all ingredients, including additives, manufacturing and 
expiration dates of the products, and the name of the producer or 
importer.  All sizes and weights of the net contents also must be 
converted to the metric system.  Goods not complying with these 
measurements may be imported but not sold to consumers until conversion 
is made.  Thus, foodstuffs labeled in English have to be re-labeled in 
Chile before they can be sold.   


                         Prohibited Imports

The importation of used passenger and cargo transportation vehicles is 
prohibited.  Exceptions to this import restriction are: used ambulances, 
armored cars, mobile homes, prison vans, street and highway cleaning 
vehicles, and cement-making vehicles.  Importers of these goods pay 11 
percent import duty plus the VAT.  Fire-fighting vehicles are not 
subject to import duty, and VAT is paid on their CIF value only. 

Special laws allow new/used car imports by persons returning from exile, 
returning after working or studying abroad for a number of years, or 
domiciled in domestic free trade zones.  These imports are also tax-
exempt. 


                                 Standards

The National Standards Institute (Instituto Nacional de Normalizacion, 
or INN), has included the ISO 9000 standards as part of Chilean 
standards, and is in charge of their promotion among local 
manufacturers.  The chemical industry is one of the few industries that 
has incorporated the ISO 9000 standards to its industrial processing 
lines.  

                         Free Trade Zones/Warehouses

Chile's two free trade zones are the Free Zone of Iquique (ZOFRI) in the 
northern tip (Region I) of Chile, and the Free Zone of Punta Arenas in 
the southern tip (Region XII).  ZOFRI encompasses the free ports of 
Arica and Iquique.  Punta Arenas also has a free port.  Modern 
facilities for manufacturing, packaging and exporting exist in each 
zone.     

Duties and VAT requirements are as follows:

(a) imports entering and remaining in Chile's free trade zones pay no 
duty or VAT; (b) imports leaving the free trade zones, but remaining in 
regions I or XII, which are considered "extended" duty-free zones, pay a 
six (6) percent import duty, but no VAT; (c) imports leaving the free 
trade zones to enter the greater Chilean market pay full tariff and VAT 
charges; (d) subject to negotiations with Chilean customs officials, 
imports can remain in-bond for extended periods while awaiting for 
transshipment to other countries.

Imported goods may remain in customs warehouses for 90 days.  If said 
goods are unclaimed after the 90-day period, the goods will be declared 
abandoned by Customs and sold at public auction.  

                          Special Import Provisions

Animal Health and Phytosanitary Requirements:  Chile occasionally uses 
animal health and phytosanitary requirements in a nontransparent manner 
which often impedes imports.  No official announcement of proposed rule 
changes precedes these requirements.  U.S. exporters have criticized the 
application of phytosanitary requirements to poultry and fresh fruit as 
non-tariff barriers meant to discourage imports.  Chilean authorities 
have in some instances eliminated or liberalized specific requirements 
when presented scientific evidence by U.S. animal health or 
phytosanitary officials.

Firearms can be imported, but they require a special permit from a 
military authority in Chile.

The import of pharmaceutical specialties, cosmetics, and most biological 
and bio-chemical preparations require prior registration with the 
Institute of Public Health (Instituto de Salud Publica), and may be 
subject to special labeling and other requirements, depending on the 
nature of the individual product.

Imported goods that are considered inconsistent with Chilean "morals, 
public health, national security or environment," require special 
authorization to enter into Chile.  These include certain personal 
security products such as mace sprays, certain chemicals/processes, and 
some media products which face review and censoring.

                        Membership in Free Trade Arrangements

Chile has free trade agreements with Mexico, Colombia and Venezuela 
which provide for duty-free trade in most products by the late 1990's.  
Chile also has trade liberalization agreements with Argentina and 
Bolivia and is negotiating an agreement with Ecuador.

As of mid-1995, the process for admitting Chile to the North American 
Free Trade Agreement has begun.  The U.S., Canada, Mexico, and Chile 
have agreed to negotiate Chile's entry.  The first working group 
meetings are scheduled for lat e July.  The U.S. Congress has said it 
will begin deliberations aimed at granting fast-track authority to the 
Clinton administration to negotiate the agreement and therefore 
facilitate passage of the agreement by Congress without amendment. Such 
an agreement would eventually eliminate tariffs on nearly all Chilean 
imports of U.S. products and U.S. imports of Chilean products.

The negotiations are not without contentious issues.  Intellectual 
property protection (especially in the area of pharmaceuticals), 
financial services, agricultural products, and textiles all will require 
extensive discussion.  All sides have expressed their willingness and 
desire, however, to resolve pertinent issues in a satisfactory manner, 
thus raising hopes for an agreement, possibly before the end of 1995.


CHAPTER VII.  INVESTMENT CLIMATE

                         Openness to Foreign Investment

A key feature of the government of Chile's development strategy is a 
welcoming attitude towards foreign investors, which is embodied in the 
country's foreign investment law, known as D.L. (for Decree Law) 600.  
D.L. 600 was promulgated in 1974 and has frequently been liberalized.  
Since 1991, nearly all foreign direct investment in Chile has taken 
place through D.L. 600.  Under this law, foreign investment must be 
approved by the government's Foreign Investment Committee, but approval 
procedures are expeditious and not burdensome.  Typically, applications 
are approved within a matter of days, and almost always within one 
month.  The rare cases in which applications have been rejected 
reportedly involved suspected investor fraud.

Under D.L. 600, investors sign standardized contracts giving them the 
rights:

--  to receive non-discriminatory treatment;
--  to participate in any form of investment;
--  to hold assets indefinitely;
--  to remit or reinvest earnings immediately and remit capital after 
one year;
--  to opt for either national tax treatment or a guaranteed rate 
(currently set at 42 percent) for the first ten years of an investment; 
and
--  to acquire foreign currency at the inter-bank rate of exchange.

This welcoming attitude to foreign investment, along with the country's 
wealth of natural resources, has led to approximately $16 billion of 
foreign investment in the 1986-1994 period.  Foreign investors have 
purchased many of the assets privatized by the Chilean government over 
the last decade.  (See CHAPTER X, Appendix D for statistics.)

Despite Chile's generally positive attitude toward foreign capital, 
certain negative treatment of foreign capital persists.  Profits may be 
repatriated immediately, but capital may not be repatriated until after 
one year.  Also, the Chilean government requires that 30 percent of 
borrowed funds and deposits from foreign sources, and proceeds from 
"secondary" American Depository Receipts issues, be placed in a non-
interest bearing account (known as the "encaje") at the Central Bank for 
one year.  (Alternatively, investors may pay the Central Bank an amount 
equal to the interest that would be foregone.)  This discourages the use 
of financing sourced abroad by raising its cost.  Supplier credits are 
exempt from the encaje requirement.  

Foreign investors can choose to have their profits taxed at a 42 percent 
rate for the first ten years of their investment or at the rate that 
applies to local firms, currently 35 percent on fully-distributed 
earnings.  (Chile and the U.S. have no tax treaty, so U.S. investors' 
income may be taxed in both countries.)  Investors choosing not to use 
D.L. 600 may invest via the provisions of Chapter XIV of the Central 
Bank's foreign exchange regulations.

The major sectoral exception to the government's openness to investment 
is in the fisheries sector.  According to 1991 amendments to the 
navigation law (D.L. 222), vessels fishing in Chile's 200-mile exclusive 
economic zone (EEZ) must have majority Chilean ownership.  The law 
permits bilateral agreements to allow foreign-owned vessels to fish in 
Chile's EEZ, but no such agreements have been concluded.  Other areas in 
which national treatment is not granted include cabotage and purchase of 
land in border areas.  Top management (but not ownership) of radio and 
television broadcasting firms is reserved for Chilean nationals.  Banks 
must establish via branches, and other financial firms must establish 
subsidiaries.  Finally, D.L. 600 gives the Central Bank the authority to 
restrict foreign investors' access to internal credit if a credit 
shortage exists.  This authority has never been exercised.

Chile does not subsidize or offer incentives to attract specifically 
foreign investment, although corporate tax exemptions are available to 
both foreign and Chilean firms investing in the extreme northern or 
southern areas of the country.  The only performance requirements are 
imposed on automotive assembly plants, which receive tax advantages 
linked to domestic content and export levels.



                    Conversion and Transfer Policies

As stated above, firms that invest via D.L. 600 may remit earnings 
immediately and may remit capital after one year.  Investors are 
guaranteed access to foreign exchange in the inter-bank currency market.  
Firms that invested via the Chapter 19 debt-equity swap program may 
remit capital and profits after five years at the prevailing inter-bank 
exchange rate.  (Chapter 19 investments ceased in 1991 after the rise in 
price of Chilean debt to near-par eliminated the incentive for such 
investments.  The five-year limit will expire by end-1995 on all but a 
handful of investments.)  Delays in repatriation are brief.  The Frei 
government, which took office in March of 1994, has continued its 
predecessors' gradual liberalization of capital controls.  It has made 
it easier to raise funds abroad by placing securities and eliminated the 
requirement that a set percentage of export earnings must be repatriated 
to Chile.

The Central Bank reserves the right to disallow access to the inter-bank 
market for royalty payments in excess of five percent of sales.  In such 
cases, firms would have access to the informal market, which almost 
always has a rate within one-half of one percent of the inter-bank rate.  
Also, the Chilean Internal Revenue Service reserves the right to prevent 
royalties of over five percent of sales from being counted as expenses 
for domestic tax purposes.


                        Expropriation and Compensation

Chilean law grants the government broad authority to expropriate the 
property of foreign investors.  The 1973-1990 military regime and the 
two democratic governments that have followed it have opposed any 
intention to nationalize private firms.  All outstanding expropriation 
cases of foreign firms were resolved by the military government, which 
provided compensation, and there have been no recent actions to suggest 
that expropriation or "creeping expropriation" is likely in the 
foreseeable future.


                            Dispute Settlement

Except for U.S. investment covered by Overseas Private Investment 
Corporation insurance (see "OPIC and Other Investment Insurance 
Programs"), disputes involving U.S. investors typically are settled 
informally in negotiations between the investor and the concerned 
government agency.  Any dispute not resolved in this way is referred to 
local courts for adjudication.  Recourse to the courts is generally not 
an attractive alternative for foreign investors, because civil suits 
often take years to resolve, and litigants often choose to settle out of 
court.

Chile's bilateral investment protection agreements with several 
countries (see "Bilateral Investment Agreements") allow for binding 
international arbitration between the government and investors.  
Different agreements contain varying procedures -- some allow the 
investor to choose either the host country's legal system or 
international arbitration but not both, while others specify that 
disputes must pass through the host country legal system before recourse 
to international arbitration.  Chile joined the International Center for 
the Settlement of Investment Disputes in 1991.  The U.S. and Chile do 
not have Bilateral Investment Treaty.

The Central Bank's imposition in 1991 of the "encaje" reserve 
requirement on external debt (see "Openness to Foreign Investment") 
raised concern in the investment community.  Although it applies to 
foreign and domestic investors alike, the measure was of greater concern 
to foreign firms because of their reliance on external credit.  Claiming 
that the Central Bank lacked the authority to impose the measure, the 
local subsidiary of a U.S. investor unsuccessfully challenged the encaje 
in the Chilean courts in 1992.


                             Political Violence

In the years since the 1990 return to democracy, there have been few 
major incidents of politically-motivated damage to projects and/or 
installations.  Three terrorist groups are sporadically active in Chile.  
These groups have primarily targeted the Chilean security forces, but 
occasionally they have placed bombs at U.S.-related sites, particularly 
Mormon churches.  Such actions are especially common when the U.S. 
military takes a high profile in international affairs.  There have been 
no occurrences of anti-U.S. mob violence or terrorist acts by 
international terrorist groups.


                         Performance Requirements/Incentives

There is only one provision for performance requirements, pertaining to 
automobile assembly operations (See "Openness to Foreign Investment").  
The Foreign Investment Committee does not apply any special performance 
requirements in its review of projects.  


                   Right to Private Ownership and Establishment

Chile conducts pro forma screening of foreign direct investment, as 
described in section "Openness to Foreign Investment".  Except for the 
fishing sector and others noted above (see "Openness to Foreign 
Investment"), Chile does not restrict the right of establishment.

                        Protection of Property Rights

Chile's intellectual property regime is generally compatible with 
international norms, but its protection of patents remains deficient.  
Efforts to enforce intellectual property rights in Chilean courts have 
been successful.  Chile does not have a sui generis statute for 
protecting the design of semiconductors, nor does it have comprehensive 
trade secret protection.  Chile belongs to the World Intellectual 
Property Organization.

The Industrial Property Law promulgated in 1991 substantially improved 
Chile's protection of industrial patents, but falls short of 
international standards.  The law provides a patent term of 15 years 
from the date of grant.  This will have to be changed to 20 years by the 
year 2000 as a result of the Uruguay Round agreements.  The law also 
does not consider plant and animal varieties as patentable subject 
matter.  Also, the law does not provide transition (or "pipeline") 
protection for pharmaceutical patents filed before the law's 
promulgation.  Because of the long lead times involved in the marketing 
of new pharmaceutical products, the law will not prevent local companies 
from pirating foreign pharmaceutical patents for several more years.  In 
addition, the registration procedures required by the health ministry to 
market new drugs are more onerous for the first-to-file, which tend to 
be foreign firms.  Finally, the Central Bank reserves the right to 
disallow access to the inter-bank foreign exchange market for payments 
for the use of patents that exceed five percent of sales.

These shortcomings have kept Chile on the U.S. Trade Representative's 
"Special 301" Watch List (countries with deficient intellectual property 
rights protection regimes) since 1989.

Chile's copyright law grants recording companies the right to authorize 
the use of a work for 50 years.  U.S. recording industry representatives 
have said that the law grants more power to authors relative to 
producers than is the industry norm.

Chilean law provides for the protection of registered trademarks and 
prioritizes trademark rights according to filing date.  Local use of the 
mark is not required for registration.  Payments for use of trademarks 
may not exceed one percent of sales.


                     Regulatory System - Laws and Procedures

Chile has an anti-monopoly law, different elements of which are 
administered by three quasi-judicial commissions.  These commissions 
have the authority to issue judgments concerning trade remedies, price 
regulation, and ownership structure.  Their rulings can be appealed to 
the courts.  Under the law, size alone is not objectionable, but the 
abuse of dominant position is.  Recent decisions by the commissions and 
the courts have blocked allegedly anti-competitive behavior in 
telecommunications and civil aviation.  Despite this record, enforcement 
is uneven, and several industries are characterized by high 
concentration and oligopolistic behavior.


                        Bilateral Investment Agreements

Chilean officials have signed bilateral investment protection agreements 
with several countries, including Argentina, Spain, Germany, 
Switzerland, France, Belgium/Luxembourg, Malaysia, Brazil, and 
Venezuela.  Most of these agreements are still awaiting ratification by 
the Chilean congress.


                  OPIC and other Investment Insurance Programs

A bilateral investment agreement with the Overseas Private Investment 
Corporation took effect in 1984.  In 1987, the U.S. suspended OPIC 
operations in Chile because of Chile's failure to recognize 
internationally accepted standards of worker rights.  In October 1990, 
the U.S. resumed OPIC coverage in Chile after the democratically-elected 
government reformed Chile's labor code.  Chile signed the Convention of 
the World Bank's Multilateral Investment Guarantee Agency (MIGA) in 
1986.  MIGA's first project involved Chile, and it has remained active 
here.


                                Labor

Chile has enjoyed generally calm labor relations since the return to 
democracy in 1990.  Strikes are rare in the private sector, although 
public employees in health, education, and coal mining have held strikes 
in the last year.  Both employment opportunities and real wages have 
risen steadily in the last few years, and first-quarter 1995 
unemployment was 5.4 percent.  Union membership is voluntary, and about 
13 percent of the workforce is unionized.  Multiple unions exist in many 
companies, and management can negotiate collective agreements 
with any of the unions or with ad hoc groups of workers.  Unions can 
form confederations or nationwide labor centrals and can affiliate with 
international labor federations.  Although the labor code permits 
industry-wide bargaining if labor and management agree, it is not 
common.  Most contracts are negotiated at the company level.  The labor 
code does not provide for labor participation in management, but some 
unions have inserted profit-sharing provisions into labor contracts.  
The minimum monthly wage was increased to 58,900 pesos (about 160 
dollars at the current exchange rate) in June 1995.  About 85 percent of 
workers earn more than the minimum wage.  Workers are also paid a family 
allowance, which employers may deduct from their tax bills.  The Chilean 
government is a signatory to ILO conventions on worker rights.


                         Foreign Trade Zones/Free Ports

The government has authorized the establishment of free trade zones to 
help promote export industries.  Free zones are located in the northern 
town of Iquique and in the southern town of Punta Arenas.  A limited 
free zone exists in the extreme northern town of Arica.  Foreign-owned 
firms have the same investment opportunities in these zones as do 
domestic entities.


                            Capital Outflow Policy

Foreign investors may use the inter-bank rate of exchange to repatriate 
capital and earnings (see "Openness to Foreign Investment" and 
"Conversion and Transfer Policies").  Importers and others with 
recognized need also receive access to the inter-bank rate.  Others must 
use the parallel exchange market.  Over the last few years, the exchange 
rates in these two markets typically have differed by less than one-half 
of one percent.

Regulations governing foreign investment by Chilean individuals and non-
financial corporations are limited.  Chilean investment abroad has 
increased dramatically in the last few years.  The total flow of 
investment abroad in 1994 was $1.2 billion, and, as of early 1995, the 
stock of investment abroad exceeded $2.4 billion.  Regulations governing 
investment by financial firms are more extensive, but the Central Bank 
is gradually liberalizing some of these restrictions.  Insurance 
companies, pension funds, and banks may invest only a limited portion of 
their assets abroad, in a narrow range of low-risk instruments.  The 
government does not provide any incentives for investment in developing 
countries.


                              Major Foreign Investors

In 1994, the United States was the largest foreign investor in Chile, 
adding $979.0 million to the overall U.S. portfolio in the market.  
Canada was second with $505.0 million and Finland was third with $465.0 
million.  Other foreign investors in Chile include South Africa, 
Argentina, Norway, Japan, and Switzerland.  The mining sector was far 
and away the principal recipient of foreign investment, adding a total 
of $1.8 billion in 1994.  The services sector received $314.0 million 
and the industrial sector received $321.0 million.  Other sectors 
benefiting from foreign investment in Chile include energy and gas, 
fisheries, forestry, transport, construction and agriculture.  (See 
Chapter X, Appendix D).


CHAPTER VIII:  TRADE AND PROJECT FINANCING


                   Brief Description of Banking System

The banking system offers many of the asset and liability products 
available in international financial centers.  Foreign trade financing 
and money exchange operations are particularly active and efficient 
compared to the rest of Latin America.

In early 1994, 38 banks were operating in Chile, high for a country with 
a 1993 GDP of $43.6 billion.  At the end of 1993, bank assets were $43 
billion, loans totalled $25 billion and deposits $20 billion.  
Authorities have not allowed new banks to enter the market since the 
early 1980's financial crisis, except via purchasing existing banks.  
This restriction applies to domestic as well as foreign banks.  Vigorous 
economic growth in recent years has strengthened bank profits, but 
restrictions remain on banks' ability to enter several rapidly growing 
areas of business, including pension fund management, factoring and 
leasing.

The sector is regulated by the Superintendent of Banks and Financial 
Institutions, an agency that reports to the Finance Minister.  The 
Central Bank, which is autonomous from the government, in conducting 
monetary and exchange rate policy and regulating international capital 
movements also regulates bank operations.

The only state-owned bank is the Banco del Estado, Chile's largest bank, 
which accounts for 15 percent of loans and 19 percent of deposits.  
Private banks handle nearly all corporate business.  The only Chilean 
banks with a direct presence in the U.S. as of the end of 1993 are the 
Banco de Chile, which has a branch office in New York and has received 
U.S. approval to open a branch in Miami, and the Banco de Santiago, 
which has a representative office in New York. 

The largest Chilean private banks are the Banco de Chile, the Banco de 
Santiago, Banco Osorno, and Banco O'Higgins.  The largest foreign bank 
is the Spanish Banco Santander.  U.S. banks ranked by size of deposits 
are: Citibank, Bank of Boston, Republic National Bank of New York, Chase 
Manhattan, Bank of America, and Chemical Bank.  U.S. banks concentrate 
mostly on corporate lending to small and medium-sized business.  
Corporate lending is focused on medium-sized businesses, because 
restrictions on the percentage of a bank's assets that can be lent to a 
single customer lead firms wanting large loans to resort to 
international sources of finance.

According to a recent report by Standard & Poor's, Chile's banking 
sector is the soundest and most solid in all of Latin America.  On the 
downside, however, the S&P report frowns upon the subordinated debt to 
the Central Bank, originated by its bailout of banks in the early 1980's 
financial crisis (the Central Bank "purchased" by means of subordinated 
debt a large quantity of bad debt owed to the banks, with the provision 
that the subordinated debt be retired out of future profits), and the 
restriction of access to international markets.  The report adds that 
foreign banks have captured 20 percent of the domestic market.  The 
report concludes that most of the Chilean banking system, current 
handicaps and future opportunities (i.e. securitization, bankruptcy 
insurance, and factoring) are likely to be tackled within the context of 
a pending reform to the Banking Law.


                    Foreign Exchange Controls Affecting Trading

Money exchange operations are particularly active and efficient by Latin 
American standards.  As a general rule, currency may be freely traded in 
two markets, the informal and the formal or inter-bank market.  The 
Central Bank is empowered to require that certain transactions be 
executed only through the formal market, such as those related to the 
import or export of goods and services, foreign loans, capital flows and 
profit remittances.  It may also determine that certain operations be 
subject to prior approval as is the case of foreign loans and 
investments, repatriation, as well as hedging and other future market 
operations.

The prevailing exchange rate is allowed to float within a 20 percent 
band around a central rate (a "crawling peg") that is adjusted to 
compensate for differences between Chilean inflation and that of its 
trading partners.  The band allows for significant fluctuation in the 
real value of the peso.  For example, the peso appreciated in real terms 
in each of the years 1991-1993, and it appreciated by an additional 5 
percent in real terms in the first five months of 1994.

 
                         General Financing Availability

Companies utilize a variety of financing sources, including retained 
earnings due to strong profitability, stock, direct investment, bank 
debt, bonds and, since 1993, through the issue of ADRs on U.S. Stock 
Exchanges, Eurobonds are also utilized.  The larger corporations have 
evolved from the use of bank debt to public source of funds such as 
stock and bonds issued locally and also to international capital 
markets.

The upgrading by Moody's of Chile's investment grade rating from BBB to 
BBB+ in 1993 and then to BAA+ in mid-1995 (the highest rating of any 
Latin American country) has opened more opportunities for raising funds 
abroad.  Standard & Poor's raised its rating to A- in July 1995.  Even 
before the changes noted above, the list of companies planning to issue 
ADRs was growing rapidly.


                       How to Finance Exports / Methods of Payment

Payment to suppliers is made by an irrevocable letter of credit from a 
Chilean commercial bank to the supplier.  This is fast and simple, with 
no lengthy delays in the remittance of foreign exchange.  Payments are 
made upon receipt of notice of shipment of goods.  Other methods of 
payment to suppliers include an unconfirmed letter of credit and open 
account.  Suppliers dealing in open account usually have developed a 
long-standing relationship with the buyer.


                  Types of Available Export Financing and Insurance

The U.S. Export-Import Bank and the Overseas Private Investment 
Corporation provide credit and insurance programs for U.S. exporters and 
investors in Chile.  The Inter American Development Bank is also active.  
The World Bank's Multilateral Investment Guarantee Agency's (MIGA) first 
project involved Chile, and it has remained active here. 


                          Available Project Financing

Major project financing is available through issue of equity and bonds 
in the international capital market, and through syndicated loans (see 
General Financing Availability above).  Eximbank does not offer project 
financing in Chile.


                List of banks with correspondent U.S. banking 
arrangements

The following U.S. banks operate in Chile:

                              Telephone    Fax
Bank                          (56-2)       (56-2)
-------------------------     ----------   ---------
American Express Bank Ltd.    671 3259     672 3214
Bank of America NT & SA       699 4501     698 8746
Bank of Boston                639 3841     639 1297
The Chase Manhattan Bank, NA  699 0068     690 5177
Chemical Bank                 672 1053     699 2089
Citibank, NA                  690 8000     690 8505
Republic National Bank of N.Y.695 2002     698 7512


     The following banks, both Chilean and foreign-owned, maintain 
correspondent banking relationships with U.S. banks:

                                  Telephone        Fax
Chilean Bank                      (56-2)          (56-2)
------------------------         ------------    -----------
Banco BHIF                        698 0000        698 4704
Banco BICE                        692 2000        696 5324
Banco Concepcion                  698 2741        696 0271
Banco de A. Edwards               631 3000        638 0904
Banco de Credito e Inversiones    696 6633        699 0279
Banco de Chile                    637 2440        637 2560
Banco de Santiago                 692 4000        696 7930
Banco del Desarrollo              698 2901        671 5547
Banco Internacional               638 3894        633 9134
Banco O'Higgins                   630 4000        698 3730
Banco Osorno y La Union           696 0414        672 8449
Banco Security                    632 5502        633 2156
Banco Sud Americano               692 6000        698 6008
Banco del Estado                  698 1209        698 1209


Non-Chilean Banks
-------------------------
ABN Tanner Bank                   671 5776        672 2696
Banesto Chile                     698 1873        672 8902
Banco Continental Group
  Credit Lyonnais                 672 2760        671 3307
Banco de la Nacion Argentina      671 2045        698 7341
Banco do Brasil                   698 1821        672 7421
Banco do Estado de Sao Paulo      695 1307        672 2459
Banco Exterior                    639 4731        639 6095
ING Bank                          672 1037        699 1113
The Bank of Tokyo Ltd.            633 2031        633 0742
Banco Real                        672 7729        696 5874
Banco Santander-Chile             631 2000        696 0622
Banco Sudameris                   638 1514        633 0957



CHAPTER IX:  BUSINESS TRAVEL


                           Business Customs

U.S. business people will find that business practices in Chile and the 
United States are very similar.  The business day usually begins at 9 
a.m. and ends between 6 and 7 p.m.  Lunch breaks usually begin at 1 p.m. 
and are an hour long, unless business is being conducted, in which case 
two to three-hour lunches are common.  Although social occasions rarely 
begin at the indicated time, business meetings always do.

Many Chilean business people are well-educated professionals who travel 
internationally and speak English.  However, not all speak English, and 
foreign business people will find the ability to speak Spanish very 
useful and rewarding.  Promotional literature should be in Spanish.


                       Travel Advisory and Visas

There are no current travel advisories issued regarding Chile.

Business people who come to Chile usually travel on a regular tourist 
visa, which is issued by immigration officers at the airport upon 
arrival.  Tourist visas are valid for 90 days and can be extended by the 
Ministerio del Interior, Oficina de Extranjeria (Moneda 1342, Santiago, 
Chile), or the Gobernacion Provincial outside of the capital city.

Individuals who intend to stay in Chile for more than 90 days but less 
than a year for business purposes can be granted a visa from a Chilean 
consulate.  Holders of this visa should register at the Policia 
Internacional where they will be issued a Certificado de Registro.

Those considering scientific, technical or mountaineering activities in 
areas classified as border areas are required to obtain authorization 
from the Chilean government (Direccion de Fronteras y Limites).  
Requests for authorization must be presented to Chilean authorities at 
least 90 days prior to the beginning of the expedition.

For those business people who intend to make sizeable investments in a 
business, a temporary resident visa may be advisable.  This visa is 
valid for one year, and can be extended for a second year.

In addition to the above, business people may also be granted a Resident 
Under Contract visa.  This visa is issued to people who have been 
contracted to carry out a specific job, requiring certain 
qualifications.  This visa is valid for up to two years, and its holders 
are allowed to have their spouse and children in the country.  A new 
visa is required if the holder changes companies.  This visa is 
requested in Chile at the Ministerio de Relaciones Exteriores (Ministry 
of Foreign Relations), Departamento de Inmigracion (Bandera 46, oficina 
11; Santiago, Chile).

For current information concerning entry and customs requirements for 
Chile, travelers can contact the Chilean Embassy in Washington, D.C. 
(see Appendix C "U.S. and Country Contacts").



                       Holidays


        The following are Chile's legal holidays:

 Jan. 1     New Year's Day
 Varies     Good Friday
 Varies     Easter Sunday
 May  1     Labor Day
 May  21    Commemoration of the Battle of Iquique
 Varies     Corpus Christi
 June 29    Saint Peter and Saint Paul
 Aug. 15    Assumption Day
 Sep. 11    Official Holiday
 Sep. 18    Independence Day
 Sep. 19    Day of the Army
 Oct. 12    Columbus Day
 Nov. 1     All Saints' Day
 Dec. 8     Immaculate Conception
 Dec. 25    Christmas Day



                   Business Infrastructure

Business operations develop in a climate of free enterprise and free 
trade.  Simplified bureaucratic procedures are the rule, making the 
Chilean business environment more transparent and friendly than most in 
Latin America.  The labor force is regarded as competent, productive, 
and relatively well-educated.  Current trends include innovation in 
export-market products and in a wide range of services for the domestic 
market.  High rates of foreign and domestic investment have added the 
application of new technologies to industrial processes and increased 
competition in distribution and marketing.

A number of business groups control large segments of the economy and at 
the same time, the number of medium-size and small companies is growing.  
Large-scale business is conducted through local corporations whose 
shares are quoted on the stock market.  Since the 1970's, the Government 
of Chile has been involved in a very successful privatization program 
that has transferred hundreds of companies and public services to 
private operators, many of those with foreign capital participation.  As 
a result of the privatization program, about 82,000 workers became 
shareholders in former state-owned enterprises.  Sectors affected by 
privatization include steel production, energy generation and 
distribution, computer services, telecommunications and mineral 
extraction and processing.

U.S. companies involved in manufacturing, services and trade have 
maintained successful operations in Chile for decades.  The Chilean-
American Chamber of Commerce has a large membership of U.S., Chilean and 
international firms, and effectively represents the interests of the 
corporate community in Chile. 



CHAPTER X:  APPENDICES

APPENDIX A:   Country Data

Population:  13,348,401
Religion
   Catholic:  7,409,528   (76%)
   Evangelic:  1,198,385   (12%)
   Indifferent/
   Atheist:  562,285   (6%)
Growth Rate:  1.8%
Government
   System:    Bicameral Democracy
Languages:    Spanish
Work Week:    40 hours


APPENDIX B:  Domestic Economy
                                       1994       1995       1996
                                       ------     ------    ------
Nominal GDP                           52,200.0    65,00.0   65,000
Growth (%)                                 4.2        6.0      6.5
Per Capita GDP (USD)                   3,700.0    4,200.0  4,600.0
Inflation (%)                              8.9        8.0      7.0
Unemployment (%)                           5.9        5.3      5.0
Gov't Spending/GDP                        26.0       26.0     26.0
Reserves (end-year, USD millions)     13,467.0   16,000.0 18,000.0
Average Exchange Rate (pesos/USD)        420.0      385.0    370.0
Foreign Debt (USD millions)           21,598.0   21,800.0 22,000.0
Debt Service/Exports (%)                  26.0       27.0     27.0
U.S. Econ/Mil Aid (USD millions)           4.5        1.7      1.9


APPENDIX C:  Trade
             Chilean-U.S./Imports and Exports
                   (millions of dollars)

                           1994          1995              1996
                        ---------      ---------        ---------
Chilean Exports           11,539.0     14,500.0        15,000.0
Chilean Imports           11,539.0     10,500.0        14,000.0
Imports from U.S.          2,638.0      3,000.0         3,300.0
Exports to U.S.            2,012.0      3,200.0         2,400.0
U.S. Pct. of Imports          24.0         24.0            24.0

APPENDIX D:  Investment Statistics

             Materialized Foreign Investment
                 Chile - By Country
              (millions of dollars)

Country            1993         1994       1995         1996
-----------      -------      -------     -------      -------
United States      637          979       1,176        1,469
Canada             426          505         607          759
Finland             54          465         559          698
South Africa        13           83         100          125
Japan               78           67          82          103
Cayman Islands       4           15          19           24
Argentina           49           60          72           90
France              12           27          33           40
Others             442          332         393          460
                 -------      -------      -------    -------
Total            1,715        2,533       3,039        3,798

The above statistics are unofficial estimates.


         Materialized Foreign Investments
                Chile - By Sector
              (millions of dollars)

Sector                 1993       1994      1995           1996
---------             -------    -------   -------       -------
Mining                  904      1,759      2,109        2,6036
Services                259        314        376           470
Industrial              450        321        385           481
Agriculture              15         22         26            33
Construction             22         39         47            59
Transportation           38         15         19            24
Forestry                 22         12         14            18
Fisheries (Aquact.)       2         38         46            58
Energy, gas, water        3         13         15            19
                       -------    -------    -------      -------
Total                   1,715      2,533     3,039         3,798

Source: For 1993 and 1994, Comite de Inversiones Extranjeras; statistics 
for 1995 and 1996 are estimates based on projected figures by experts, 
with an increase of 20% and 25% respectively.


APPENDIX E:  U.S. and Country Contacts


       Country Government Agencies


Ministerio de Relaciones Exteriores
(Ministry of Foreign Relations)
Contact: Jose Miguel Insulza, Minister
Morande 441; Santiago, Chile
Tel: (56-2) 696-2574  696-4574
Fax: (56-2) 696-8796

Ministerio de Hacienda
(Ministry of Finance)
Contact: Eduardo Aninat U., Minister
Teatinos 120, Piso 12, Oficina 32; Santiago, Chile
Tel: (56-2) 671-0706  671-6479
Fax: (56-2) 671-6479

Ministerio de Economia, Fomento y Reconstruccion
(Ministry of Economy)
Contact: Alvaro Garcia H., Minister
Teatinos 120, Piso 10; Santiago, Chile
Tel: (56-2) 698-3115  672-5164
Fax: (56-2) 698-9476

Ministerio de Trabajo y Prevision Social
(Ministry of Labor and Social Security)
Contact: Jorge Arrate, Minister
Huerfanos 1273, Piso 6; Santiago, Chile
Tel: (56-2) 671-6443  696-4654
Fax: (56-2) 671-6539

Ministerio de Obras Publicas
(Ministry of Public Works)
Contact: Ricardo Lagos E., Minister
Morande 59, Piso 6; Santiago, Chile
Tel: (56-2) 672-4506 ext. 282  671-4179
Fax: (56-2) 672-6609

Ministerio de Salud Publica
(Ministry of Public Health)
Contact: Carlos Massad A., Minister
Mac Iver 541, Piso 3; Santiago, Chile
Tel: (56-2) 639-4084
Fax: (56-2) 639-4001

Ministerio de Vivienda y Urbanismo
(Ministry of Housing and Urban Development)
Contact: Edmundo Hermosilla H., Minister
Alameda Bdo. O'Higgins 924, Piso 6; Santiago, Chile
Tel: (56-2) 633-1624  638-2654
Fax: (56-2) 633-3892

Ministerio de Agricultura
(Ministry of Agriculture)
Contact: Emiliano Ortega R., Minister
Teatinos 40, Piso 9; Santiago, Chile
Tel: (56-2) 696-5896  696-4496
Fax: (56-2) 671-6500

Ministerio de Mineria
(Ministry of Mines)
Contact: Benjamin Teplizky L., Minister
Teatinos 120; Piso 9, Oficina 5; Santiago, Chile
Tel: (56-2) 696-1544  696-5872
Fax: (56-2) 698-9262

Ministerio de Transportes y Telecomunicaciones
(Ministry of Transportation and Telecommunications)
Contact: Narciso Irureta A., Minister
Amunategui 139, Piso 3; Santiago, Chile
Tel: (56-2) 672-6503 ext. 338
Fax: (56-2) 672-4531

Ministerio de Bienes Nacionales
(Ministry of National Resources)
Contact: Adriana Delpiano P., Minister
Juan Antonio Rios 6; Santiago, Chile
Tel: (56-2) 222-4669
Fax: (56-2) 633-6521



     Government-Related Agencies

Comision Nacional de Energia
(National Energy Commission)
Contact: Alejandro Jadresic M., Minister President
Teatinos 120, Piso 7; Santiago, Chile
Tel: (56-2) 698-1757  671-4375
Fax: (56-2) 698-1757

Superintendencia de Electricidad y Combustible
(Superintendency of Electricity and Fuel)
Contact: Jaime Schatz, Superintendent
Amunategui 58, Piso 3; Santiago, Chile
Tel: (56-2) 696-4226
Fax: (56-2) 672-7708

Centro de Investigacion Minera y Metalurgica (CIMM)
(Mining and Metallurgy Research Center)
Contact: Sergio Hernandez, President of the Board
Parque Antonio Rabat 6500, Vitacura; Santiago, Chile
Tel: (56-2) 218-4311  242-7446
Fax: (56-2) 218-6015

Comision Chilena de Energia Nuclear
(Chilean Nuclear Energy Commission)
Contact: Eduardo Bobadilla, President
Amunategui 95; Santiago, Chile
Tel: (56-2) 699-0070
Fax: (56-2) 699-1618

Corporacion Nacional del Cobre (CODELCO)
(National Copper Corporation)
Contact: Juan Villarzu, President
Huerfanos 1270; Santiago, Chile
Tel: (56-2) 698-8801
Fax: (56-2) 672-1473

Empresa Nacional del Carbon S.A. (ENACAR)
(State Coal Producing Enterprise)
Contact: Rafael Lopez, Interim General Manager
Antonio Bellet 281; Santiago, Chile
Tel: (56-2) 235-2715
Fax: (56-2) 236-1113

Empresa Nacional del Petroleo (ENAP)
(State Oil and Gas Producing Enterprise)
Contact: Alvaro Garcia Alamos, General Manager
Ahumada 341, Piso 3; Santiago, Chile
Tel: (56-2) 638-1845
Fax: (56-2) 638-0164

Servicio Nacional de Geologia y Mineria (SERNAGEOMIN)
(National Geological and Mining Agency)
Contact: Ricardo Troncoso, National Director
Santa Maria 0104, Providencia; Santiago, Chile
Tel: (56-2) 737-5050
Fax: (56-2) 737-2026

Corporacion de Fomento de la Produccion
(National Development Corporation)
Contact: Felipe Sandoval P., Minister Executive VP
Moneda 921, Piso 8, Oficina 809; Santiago, Chile
Tel: (56-2) 638-0577  638-0521
Fax: (56-2) 671-1328

Comite de Inversiones Extranjeras
(Foreign Investment Committee)
Contact: Eduardo Moyano, Executive Vice President
Teatinos 120, Piso 10; Santiago, Chile
Tel: (56-2) 698-4254
Fax: (56-2) 698-9476

Banco del Estado
(State Bank of Chile)
Contact: Andres Sanfuentes, President
Alameda Bdo. O'Higgins 1111; Santiago, Chile
Tel: (56-2) 670-7000
Fax: (56-2) 698-3299

Servicio de Impuestos Internos
(Internal Tax Service)
Contact: Javier Etcheberry, National Director 
Teatinos 120, Piso 6; Santiago, Chile
Tel: (56-2) 698-2051
Fax: (56-2) 671-3669

Servicio Nacional de Aduanas
(National Customs Service)
Contact: Enrique Fanta Ivanovitch, National Director
Plaza Sotomayor 60; Valparaiso, Chile
Tel: (56-32) 21-7911
Beaucheff 1525; Santiago, Chile

Superintendencia de Bancos e Instituciones Financieras
(Superintendency of Banks and Financial Institutions)
Contact: Jose F. Guzman, Superintendent
Moneda 1123, Piso 6; Santiago, Chile
Tel: (56-2) 699-0072
Fax: (56-2) 671-1654

Superintendencia de Valores y Seguros
(Superintendency of Securities and Insurance)
Contact: Daniel Yarur, Superintendent
Teatinos 120, Piso 6; Santiago, Chile
Tel: (56-2) 696-2194
Fax: (56-2) 698-7425

Direccion de Promocion de Exportaciones -- PROCHILE
(Export Promotion Agency)
Contact: Jean Jacques Duhart, Director
Alameda Bdo. O'Higgins 1315; Santiago, Chile
Tel: (56-2) 696-0043
Fax: (56-2) 696-0639

Federacion de Productores de Fruta de Chile (FEDEFRUTA)
(National Fruit Producers' Association)
Contact: Ricardo Ariztia, President
San Antonio 220, Oficina 301; Santiago, Chile
Tel: (56-2) 632-5274
Fax: (56-2) 632-7327

Superintendencia de Administradoras de Fondos de Pensiones
(Pension Fund Administration)
Contact: Superintendent
Huerfanos 1273, Piso 2; Santiago, Chile
Tel: (56-2) 671-6074
Fax: (56-2) 698-5305

Banco Central
(Central Bank)
Contact: Roberto Zahler, President
Agustinas 1180; Santiago, Chile
Tel: (56-2) 670-2000
Fax: (56-2) 698-4847

Comision Nacional del Medio Ambiente (CONAMA)
(National Environmental Commission)
Contact: Jose Goni, Executive Director 
Alameda Bdo. O'Higgins 949, Piso 13; Santiago, Chile
Tel: (56-2) 699-2476  699-6127
Fax: (56-2) 671-8805

Corporacion Nacional Forestal (CONAF)
(National Forestry Commission)
Contact: Jose A. Prado, Executive Director
Avda. Bulnes 285, Piso 5, Oficina 501; Santiago, Chile
Tel: (56-2) 696-2833  696-3664
Fax: (56-2) 671-5881

Corporacion Chilena de la Madera (CORMA)
(National Wood Corporation)
Contact: Eladio Susaeta, President
Agustinas 814, Oficina 407; Santiago, Chile
Tel: (56-2) 633-5728  638-4194
Fax: (56-2) 639-7485

Servicio Agricola y Ganadero (SAG)
(Agriculture and Livestock Service)
Contact: Leopoldo Sanchez, National Director 
Bulnes 140, Piso 8; Santiago, Chile
Tel: (56-2) 698-2244
Fax: (56-2) 672-1812

Oficina de Estudios y Politicas Agricolas (ODEPA)
(Office of Agricultural Policies and Studies)
Contact: Carlos Furche, Director
Teatinos 40, Piso 8; Santiago, Chile
Tel: (56-2) 696-0671  696-3241
Fax: (56-2) 671-0953

Servicio Nacional de Pesca
(National Fisheries Service)
Contact: Juan Rusque A., Director
Tel: (56-32) 21-7390
Fax: (56-32) 25-9564

Servicio Nacional de Turismo (SERNATUR)
(National Tourism Service)
Contact: M. Ines Mardones, President
Providencia 1550; Santiago, Chile
Tel: (56-2) 236-1416
Fax: (56-2) 236-1417

Ministerio de Obras Publicas, Depto. Concesiones
(Ministry of Public Works, Concessions Dept.)
Contact: Carlos Cruz, Coordinador de Concesiones
Morande 59, OF. 421; Santiago, Chile
Tel: (56-2) 699-2233
Fax: (56-2) 671-0854

Direccion General de Obras Publicas
(General Directorate of Public Works)
Contact: Juan Lobos, General Director 
Morande 59, Piso 3; Santiago, Chile
Tel: (56-2) 672-7989
Fax: (56-2) 

Superintendencia de Obras Sanitarias
(Superintendency of Sanitary Works)
Contact: Eugenio Celedon, Superintendent
Moneda 673, Piso 7; Santiago, Chile
Tel: (56-2) 633-2082
Fax: (56-2) 698-1537

Servicio de Salud Metropolitano del Ambiente
(Metropolitan Environmental Service)
Contact: Patricia Matus, Director
Bulnes 175, Santiago, Chile
Tel: (56-2) 699-3339  699-3338
Fax: (56-2) 699-3339

Empresa de Ferrocarriles del Estado (FFCC del E)
(Chilean State Railways)
Contact: Ignacio Echevarria, President of the Board
Alameda Bdo. O'Higgins 3322, Piso 3; Santiago, Chile
Tel: (56-2) 779-6515
Fax: (56-2) 776-2609

Empresa Portuaria de Chile--EMPORCHI
(Chilean Ports Management Company)
Contact: Raul Urzua, Director
Blanco 839; Valparaiso, Chile
Tel: (56-32) 257-167
Fax: (56-32) 259-937

Direccion General de Aeronautica Civil
(Civil Aviation Administration)
Contact: General Gonzalo Miranda, General Director 
Avda. Miguel Claro 1314; Santiago, Chile
Tel:  (56-2) 204-7676
Fax:  (56-2) 209-0532

Junta de Aeronautica Civil
(Civil Aviation Commission)
Contact: Juan P. Langlois, Secretary General
Amunategui 139, Piso 7; Santiago, Chile
Tel: (56-2) 698-5594
Fax: (56-2) 699-5138

               Country Trade Associations/Chambers of Commerce

Asociacion Chilena de Empresas de Control y Certificacion de Calidad y 
Cantidad (ACHICC)
(Chilean Quality Control Association)
Contact: Raul Corthorn, President
Alsacia 165, Las Condes; Santiago, Chile
Tel: (56-2) 242-9474
Fax: (56-2) 

Empresa Chilena de Empresas de Turismo (ACHET)
(Chilean Association of Chilean Tourism Agencies)
Contact: Onofre Urrutia, President
Moneda 973, Oficina 647; Santiago, Chile
Tel: (56-2) 699-2140  696-5677
Fax: (56-2) 699-4245

Asociacion Chilena de Empresas de Tecnologias de Informacion
(Chilean Association of Information Technology Companies)
Contact: Osvaldo Schaerer, President
Santa Maria 0508, Piso 4; Santiago, Chile
Tel: (56-2) 735-5755
Fax: (56-2) 735-5754

Asociacion de Bancos e Instituciones Financieras
(Banks and Financial Institutions Association)
Contact: Hernan Somerville, President
Ahumada 179, Piso 12; Santiago, Chile
Tel: (56-2) 671-7149
Fax: (56-2) 698-8945

Asociacion de Distribuidores de Combustibles de Chile
(National Fuel Distributors Association)
Contact: Victor Ahumada, National President
Miguel Claro 1423, Providencia; Santiago, Chile
Tel: (56-2) 205-5456  204-1495
Fax: (56-2) 204-1495

Asociacion de Empresas de Servicio Publico
(Public Utility Companies Association)
Contact: Richard Buchi, President
Andres Bello 1051, Oficina 2001, Providencia; Santiago, Chile
Tel: (56-2) 235-7374  236-1204
Fax: (56-2) 

Asociacion de Industrias Metalurgicas y Metalmecanicas (ASIMET)
(Metallurgic and Metalmechanic Industries Association)
Contact: Juan Riveros, President
Agustinas 785, Piso 4, Oficina 454; Santiago, Chile
Tel: (56-2) 638-0501
Fax: (56-2) 639-5088

Asociacion de Productores y Representantes de Productos Lubricantes 
(ASOLUB)
(Lubricant Producers and Representatives Association)
Contact: Hector Carvajal, President
Providencia 2601, Oficina 11; Santiago, Chile
Tel: (56-2) 231-7406
Fax: (56-2) 231-7406

Asociacion Gremial de Corredores de Propiedades y Promotores de la 
Construccion (ACOP)
(Association of Real States and Construction Promoters)
Contact: Jose F. Montalva, President
Providencia 2008-A, Piso 2; Santiago, Chile
Tel: (56-2) 231-6548  252-0167
Fax: (56-2) 233-5110

Asociacion Gremial de Empresarios Hoteleros del Area Metropolitana
(Metropolitan Area Hoteliers Association)
Contact: Enrique Carvajal, President
Elias Fernandez Albano 171, Piso 3; Santiago, Chile
Tel: (56-2) 671-1937  698-8765
Fax: (56-2) 698-8850

Asociacion Gremial de Industriales Quimicos (ASIQUIM)
(Chemical Industry Association)
Contact: Sergio Robledo, President
Monsenor Felix Cabrera 23, Oficina 21; Santiago, Chile
Tel: (56-2) 232-1843
Fax: (56-2) 231-0097

Asociacion Gremial de la Mediana y Pequena Industria de Chile (AMPICH)
(Chilean Small- and Mid-Size Industry Association)
Contact: Chaquib Sufan, President
Republica 371; Santiago, Chile
Tel: (56-2) 689-6363  689-4260
Fax: (56-2) 689-4260

Asociacion Gremial de Medianos y Pequenos Industriales Metalurgicos 
(CORMETAL)
(Small- and Mid-size Metallurgic Industry Association)
Contact: Francisco Naray, President
Ejercito 426; Santiago, Chile
Tel: (56-2) 671-0873  671-4150
Fax: (56-2) 671-0873

Asociacion Gremial Nacional de Duenos de Establecimientos Comerciales 
(SIDECO)
(National Association of Commercial Establishment Owners)
Contact: Eduardo Dumay, President
Santa Lucia 302, Piso 4; Santiago, Chile
Tel: (56-2) 633-1108  633-1109


Asociacion Gremial de Laboratorios Farmaceuticos--AGRELAF
(Pharmaceutical Laboratories Association)
Contact: Mario Elortegui R., President
Eliodoro Yanez 1939; Santiago, Chile
Tel: (56-2) 225-9299
Fax: (56-2) 204-5094

Asociacion Nacional de Importadores
(National Association of Importers)
Contact: Jose A. Oyarzun, Manager
Santa Lucia 302, Piso 5; Santiago, Chile
Tel: (56-2) 639-7859
Fax: (56-2) 639-7859

Asociacion de Exportadores de Chile
(Chilean Exporters Association)
Contact: Ronald Bown, President
Cruz del Sur 133, Piso 2; Santiago, Chile
Tel: (56-2) 206-6604  206-4163
Fax: (56-2) 672-7791

Camara Chilena de la Construccion
(Chilean Construction Chamber)
Contact: Blas Bellolio, Manager
Marchant Pereira 10, Piso 3, Providencia; Santiago, Chile
Tel: (56-2) 233-1131
Fax: (56-2) 232-7600

Chilean-American Chamber of Commerce (AMCHAM)
Contact: Claudio Garcia, President
         Francisco Bernales, General Manager
Americo Vespucio Sur 80, Piso 9; Santiago, Chile
Tel: (56-2) 208-3451  208-4140
Fax: (56-2) 206-0911

Camara de Comercio de Santiago
(Santiago Chamber of Commerce)
Contact: Peter Hill, President
Santa Lucia 302, Pisos 1,2,3; Santiago, Chile
Tel: (56-2) 632-1232
Fax: (56-2) 632-1232



Camara de la Industria Cosmetica de Chile
(Chilean Cosmetics Industry Chamber)
Contact: Carlos Hurtado, President
Gral. Bustamante 24, Piso 3, oficina E, Providencia; Santiago, Chile
Tel: (56-2) 274-3816  251-8749
Fax: (56-2) 204-9501

Camara de la Industria Farmaceutica de Chile
(Pharmaceutical Industry Association)
Contact: Francisco Medone, President
Hernando de Aguirre 1981, Providencia; Santiago, Chile
Tel: (56-2) 225-2959  225-2461
Fax: (56-2) 205-2060

Camara Nacional de Comercio de Chile
(National Chamber of Commerce)
Contact: Alfonso Mujica, President
Santa Lucia 302, Piso 4; Santiago, Chile
Tel: (56-2) 639-7694  639-6639
Fax: (56-2) 638-0234

Instituto Textil de Chile
(Chilean Textile Institute)
Contact: Mario Garcia, Manager
Bandera 566, Oficina 101, Piso 10; Santiago, Chile
Tel: (56-2) 696-0210  696-0768
Fax: (56-2) 672-5214

Asociacion de Franchising de Chile--AFICH
(Chilean Franchising Association)
Contact: Carlos Fabia, President
Huerfanos 1373, Oficina 810; Santiago, Chile
Tel: (56-2) 697-2813  695-1833
Fax: (56-2) 633-0521

World Trade Center
Contact: Pedro Pablo Alamos, Vice President
Avda. Nva. de Lyon 72, Piso 3; Santiago, Chile
Tel: (56-2) 233-7050
Fax: (56-2) 233-7034




                Country Market Research Firms

Instituto Profesional de Estudios Bancarios Guillermo Subercaseaux
Contact: Maria Elena Ovalle, Rector
Agustinas 1476, Piso 10; Santiago, Chile
Tel: (56-2) 698-1972  696-8920
Fax: (56-2) 699-3634

Adimark Ltda.
Contact: Veronica Edwards
Luis Thayer Ojeda 1106; Santiago, Chile
Tel: (56-2) 231-5061  232-8618
Fax: (56-2) 231-0642

C. H. & Associates
Contact: Carol Heitmann, Business Consultant
Avda. Suecia 0119, Edificio Holley, Oficina 502; Santiago, Chile
Tel: (56-2) 232-5485
Fax: (56-2) 232-5486

Instituto Chileno de Administracion Racional de la Empresa--ICARE
Contact: Ricardo Vacarreza, President
Huerfanos 801, Piso 6; Santiago, Chile
Tel: (56-2) 639-4202
Fax: (56-2) 639-3628

Price Waterhouse
Contact: Pedro Deutsch, Director
Huerfanos 863, Piso 2; Santiago, Chile
Tel: (56-2) 638-3023
Fax: (56-2) 633-3329

Langton Clarke (Coopers & Lybrand)
Contact: Diego Valdes, Consulting Partner
Huerfanos 812, Piso 5; Santiago, Chile
Tel: (56-2) 638-1320, 638-3569
Fax: (56-2) 638-2850

Proyectos Industriales Ltda.
Contact:  Eduardo Zuniga Pacheco, President
Agustinas 853, Of. 417; Santiago, Chile
Tel/fax:  (56-2) 633-4182


			Country Commercial Banks


Private Chilean-Owned Banks

Banco BHIF
Contact: Edmundo Hermosilla, General Manager
Huerfanos 1234; Santiago, Chile
Tel: (56-2) 698-0000
Fax: (56-2) 698-5640

Banco Bice
Contact: Gonzalo Valdes, General Manager
Teatinos 220; Santiago, Chile
Tel: (56-2) 692-2000
Fax: (56-2) 696-5324

Banco Concepcion
Contact: Gonzalo Romero, General Manager
Huerfanos 1072; Santiago, Chile
Tel: (56-2) 698-2741
Fax: (56-2) 696-0271

Banco de A. Edwards
Contact: Julio Jaraquemada, General Manager
Huerfanos 740; Santiago, Chile
Tel: (56-2) 631-3000
Fax: (56-2) 631-4100

Banco de Chile
Contact: Segismundo Schulin-Zeuthen, General Manager
Ahumada 251; Santiago, Chile
Tel: (56-2) 637-1111
Fax: (56-2) 698-8288

Banco de Cr?dito e Inversiones
Contact: Juan E. Musalem, General Manager
Huerfanos 1134; Santiago, Chile
Tel: (56-2) 696-6633
Fax: (56-2) 672-8666

Banco de Santiago
Contact: Hector Valdes, General Manager
Bandera 172; Santiago, Chile
Tel: (56-2) 692-4000
Fax: (56-2) 698-7948

Banco del Desarrollo
Contact: Vicente Caruz, General Manager
Avda. Lib. Bernardo O'Higgins 949, Piso 3; Santiago, Chile
Tel: (56-2) 698-2901
Fax: (56-2) 671-5547

Banco del Estado de Chile
Contact: Arturo Moreno, General Manager
Avda. Lib. Bernardo O'Higgins 1111; Santiago, Chile
Tel: (56-2) 670-7000
Fax: (56-2) 670-5711

Banco Osorno
Contact: Juan C. Martino, General Manager
Bandera 140; Santiago, Chile
Tel: (56-2) 696-0414
Fax: (56-2) 672-1648

Banco Security
Contact: Renato Penafiel, General Manager
Agustinas 621; Santiago, Chile
Tel: (56-2) 632-5502
Fax: (56-2) 633-2156

Banco Sud Americano
Contact: Juan L. Kostner, General Manager
Morande 226; Santiago, Chile
Tel: (56-2) 692-6000
Fax: (56-2) 698-6008


U.S. Banks

American Express
Contact: Susan R.S. Schofield, General Manager
Agustinas 1360; Santiago, Chile
Tel: (56-2) 699-3919
Fax: (56-2) 672-7686

Chemical Bank
Contact: Kathleen Barclay, General Manager
Agustinas 1439; Santiago, Chile
Tel: (56-2) 672-1053
Fax: (56-2) 699-2089

Citibank
Contact: Victor Tevino, Country Corporate Officer
Ahumada 48, Piso 10; Santiago, Chile
Tel: (56-2) 690-8000
Fax: (56-2) 690-8505  672-2325

Bank of America
Contact: Alexander Maurogordato, VP 
Agustinas 1465; Santiago, Chile
Tel: (56-2) 699-4501
Fax: (56-2) 698-8746

Bank of Boston
Contact: James E. Callahan, VP and General Manager
Moneda 799; Santiago, Chile
Tel: (56-2) 639-3841
Fax: (56-2) 639-1297

Republic National Bank
Contact: Emilio Drullinsky, Senior Vice President
Huerfanos 1060; Santiago, Chile
Tel: (56-2) 695-2002
Fax: (56-2) 698-7512

The Chase Manhattan Bank
Contact: Marcelo Podesta, General Manager
Agustinas 1235, Piso 5; Santiago, Chile
Tel: (56-2) 699-0068
Fax: (56-2) 690-5340


                 U.S. Embassy Trade Personnel



Embassy personnel can be reached at:

Hon. Gabriel Guerra-Mondragon, Ambassador
American Embassy - Santiago
Avenida Andres Bello 2800; Santiago, Chile
Tel: (56-2) 232-2600
Fax: (56-2) 330-3710


The Commercial Service of the United States:
Direct Tel.: (56-2) 330-3705
Direct Fax : (56-2) 330-3172

Carlos Poza, Commercial Counselor
James Koloditch, Commercial Attache
Patricia Jaramillo, Commercial Specialist 
Mary Lou Lathrop, Commercial Specialist 
Isabel Margarita Valenzuela, Commercial Specialist 
Maria Clara Vial, Commercial Specialist 
Cristina Vidal, Commercial Specialist


Economic Section:
Tel: (56-2) 232-2600
Fax: (56-2) 330-3710

Anthony Interlandi, Economic Counselor
James L. Dudley, Economic Officer
Larry Memmott, Regional Resources Officer
Carlos Capurro, Economic Specialist


Foreign Agricultural Service--FAS:
Direct Tel.: (56-2) 330-3704
Direct Fax : (56-2) 330-3203

Richard B. Helm, Agricultural Attache
Luis Hennicke, Agricultural Specialist


Political Section:
Direct Tel: (56-2) 330-3335
Fax: (56-2) 330-3710

Phillip Chicola, Political Counselor


Agency for International Development--AID:
Merced 230, Piso 1; Santiago, Chile
Tel: (56-2) 638-1014/632-5211/330-3708
Fax: (56-2) 638 -0931

Thomas J. Nicastro, Counselor for International Development


United States Information Service--USIS:
Tel.: (56-2) 330-3706 (Cultural Affairs)
Fax : (56-2) 330-3710
Tel : (56-2) 330-3703 (Cultural, Press and Audiovisual Affairs)

Barbara C. Moore, Public Affairs Officer


Consular Section:
American Citizens Services
Tel.: (56-2) 330-3702
Fax : (56-2) 330-3710
Richard Mann, Consul General



                 Washington-Based USG Country Contacts

Chile Desk Officers

Department of Commerce:
Contact: Roger Turner
Room Number 3021
U.S. Department of Commerce
14th Street & Constitution Avenue, N.W.
Washington, D.C.  20230
Tel: (202) 482-1495; Fax: (202) 482-4726


Department of Agriculture:
Contact: Edwin Bauer, Area Officer - Western Hemisphere
Room Number 5084S
U.S. Department of Agriculture
14th and Independence Avenue, S.W.
Washington, D.C. 20250
Tel: (202) 720-6878; Fax: (202) 720-6063

Department of State:
Contact: Alex Featherstone
2201 C Street, N.W.
Washington, D.C. 20520
Tel: (202) 647-2407; Fax: (202) 736-4415

Department of Treasury:
Contact: Barbara Geiser
1500 Pennsylvania Avenue, N.W.
Washington, D.C.  20220
Tel: (202) 622-1271; Fax: (202) 622-1273

U.S. Information Agency:
Contact: Howard Leeb
Office of American Republics Affairs
301 Fourth St., S.W.
Washington, D.C. 20547
Tel: (202) 619-5867; Fax: (202) 619-5093/619-5172

U.S. Travel and Tourism Administration:
Contact: Jon Arthur, Regional Director USTTA South America
8125 N.W. 53rd Street, Suite 100
Miami, Florida  33166
Tel: (305) 526-2912; Fax: (305) 526-2915



Other Agencies

Overseas Private Investment Corporation--OPIC
Contact: Cheryl W. Kfuri, Senior Investment Officer
1100 New York Avenue, N.W.
Washington, D.C.  20527
Tel: (202) 336-8492; Fax: (202) 408-9866


U.S. Trade and Development Agency--TDA
Contact: Latin American Country Manager
U.S. International Development Cooperation Agency
Room 309, SA-16 
Washington, D.C. 20523
Tel: (703) 875-4357; Fax: (703) 875-4009

Export-Import Bank--EXIMBANK
Contact: Chosei Kuge, Loan Officer-Chile
811 Vermont Avenue, N.W.
Washington, D.C. 20571
Tel: (202) 377-7234; Fax: (202) 566-7524


                   Chilean Government Agencies in the U.S.

Ambassador John Biehl
Chilean Embassy, U.S.
1732 Massachusetts Avenue N.W.
Washington, D.C. 20036
Tel: (202) 785-1746; Fax: (202) 887-5579

Chilean Consulate - Atlanta, GA
Chilean Consulate - Boston, MA
Chilean Consulate - Charleston, SC
Chilean Consulate - Chicago, IL
Chilean Consulate - Dallas, TX
Chilean Consulate - Honolulu, HI
Chilean Consulate - Houston, TX
Chilean Consulate - Los Angeles, CA
Chilean Consulate - Miami, FL
Chilean Consulate - New Orleans, LA
Chilean Consulate - New York, NY
Chilean Consulate - Philadelphia, PA
Chilean Consulate - Salt Lake City, UT
Chilean Consulate - San Diego, CA
Chilean Consulate - San Francisco, CA
Chilean Consulate - San Juan, PR
Chilean Consulate - San Mateo, CA
Chilean Consulate - Seattle, WA
Chilean Consulate - Washington, DC



Corporacion de Fomento de la Produccion - CORFO 
(Chilean Production Development Center)
One World Trade Center, Suite 5151
New York, New York 10048
Tel: (212) 938-0550
Fax: (212) 938-0559

Empresa Nacional del Petroleo - ENAP (National Petroleum Enterprise)
One World Trade Center, Suite 5151
New York, New York 10048
Tel: (212) 938-0557, 938-0558
Fax: (212) 938-0559

Corporacion Nacional del Cobre - CODELCO
(Chilean State Copper Corporation)
CODELCO U.S.A., CODELCO METALS
177 Broad Street, 14th Floor
Stamford, Connecticut 06901
Tel: (203) 425-4321
Fax: (203) 425-4322

ProChile (Chilean Government Trade Bureau)
One World Trade Center, Suite 5151
New York, New York 10048
Tel: (212) 938-0555
Fax: (212) 321-1943


APPENDIX F:  MARKET RESEARCH

AVAILABLE AND UPCOMING AGRICULTURAL REPORTS

Agricultural Commodity and Market Reports:
(These are annual reports issued every year in the specified month)

--  Fresh Deciduous Fruit:  January
--  Kiwi Fruit:  January
--  Seafood:  February
--  Tree Nuts:  February
--  Strawberries:  March
--  Canned Deciduous Fruit:  March
--  Fishmeal and Oil:  April
--  Sugar and Molasses:  April
--  Dried Fruit:  April
--  Planting Seeds:  May
--  Tobacco:  May
--  Tomatoes and Products:  May
--  Wine:  June
--  Agricultural Situation:  July
--  Annual Marketing Plan:  September
--  Forest Products:  October
--  Avocados:  November
--  Dairy Situation:  November


AVAILABLE AND UPCOMING INDUSTRY REPORTS, FY 1995

--  Processed Food:  October, 1994
--  Recycling Equipment:  October, 1994
--  Port Equipment:  December, 1994
--  Franchising:  January, 1995
--  Railroad Privatization and Investment:  January, 1995
--  Personal Computers:  February, 1995
--  Safety and Security Equipment:  June, 1995
--  Ports:  June, 1995
--  Pleasure and Recreational Boats:  August, 1995
--  Telecommunications:  August, 1995
--  Disposable Medical Products:  August, 1995
--  Water Treatment Equipment:  September, 1995
--  Air Pollution Equipment:  September, 1995
--  Environmental Consulting Services:  September, 1995
--  High Tech and Innovative Environmental Solutions:  September, 1995
	
TENTATIVE AREAS FOR INDUSTRY REPORTS, FY 1996
(Subject to change)

Commercial fishing equipment
Autoparts
Forestry equipment
Electro-medical equipment
Individual sport equipment (golf, tennis, racquet ball, fishing, 
fitness)
Pulp and paper machinery
Non-fast food franchising
Electricity generating, transmission, and distribution equipment
Mining industry equipment
Agricultural machinery or fruit and vegetable processing machinery
Construction machinery

APPENDIX G:  TRADE EVENT SCHEDULE


1.  Event Name:  SOFTEL '95
Event Locations: Santiago, Chile
Dates of Event:  July 11 - 16, 1995
U.S. Recruitment/Promotion: CMC, Exhibition & Conference Producers
Tel:  (703) 527-8000; Fax:  (703) 527-8006
Post Contact:  Patricia Jaramillo at (56-2) 232-2600

2.  Event Name:  NEW PRODUCTS USA CATALOG SHOW
Event Locations: Santiago, Chile
Dates of Event:  August 1995
U.S. Recruitment/Promotion: Jim Boney at (202) 482-3973
Post Contact:  (56-2) 232-2600

3.  Event Name:  EXPOSALUD '95 TRADE FAIR
(Health care industry)
Event Locations: Santiago, Chile
Dates of Event:  October 3-7, 1995
U.S. Recruitment/Promotion: ShoWorks
Tel:  (509) 838-8755; Fax:  (509) 838-2838
Post Contact: Patricia Jaramillo at (56-2) 232-2600

4.  Event Name:  AUTOMOTOR '95
Event Locations: Santiago, Chile
Dates of Event:  August 10 - 12, 1995
U.S. Recruitment/Promotion: Showorks
Tel:  (509) 838-8755; Fax:  (509) 838-2838

5.  Event Name:  PRINTPACK
Event Locations: Santiago, Chile
Dates of Event:  August 22 - 26, 1995
U.S. Recruitment/Promotion: Showorks
Tel:  (509) 838-8755; Fax:  (509) 838-2838

6.  Event Name:  EXPOAGRO
(Agricultural products and equipment)
Event Locations: Santiago, Chile
Dates of Event:  September 05 - 10, 1995
U.S. Recruitment/Promotion: Showorks
Tel:  (509) 838-8755; Fax:  (509) 838-2838

7.  Event Name:  EDIFICA
(Construction industry)
Event Locations: Santiago, Chile
Dates of Event:  September 26 - 30, 1995
U.S. Recruitment/Promotion: N/A

8.  Event Name:  PUERTO RICO TRADE MISSION
Event Locations: Santiago, Chile
Dates of Event:  October 14 - 20, 1995
U.S. Recruitment/Promotion: N/A

9.  Event Name:  VII CHILEAN CONGRESS ON TRANSPORTATION ENGINEERING
Event Locations: Santiago, Chile
Dates of Event:  October 18 - 20, 1995
U.S. Recruitment/Promotion: N/A

10.  Event Name: MASSACHUSETTS TRADE MISSION
Event Locations: Santiago, Chile
Dates of Event:  October 15 - 18, 1995
U.S. Recruitment/Promotion: Elizabeth A. Ozon
Tel: (617) 367-1830; Fax: (617) 227-3488

11.  Event Name: FISA '95
(Very large show featuring products from all industries)
Event Locations: Santiago, Chile
Dates of Event:  October 27 - November 5, 1995
U.S. Recruitment/Promotion: Showorks
Tel:  (509) 838-8755; Fax:  (509) 838-2838

12.  Event Name: GROWTH INDUSTRIES
(Catalog show featuring new products and services)
Event Locations: Santiago, Chile
Dates of Event:  October 30 - 31, 1995
U.S. Recruitment/Promotion: N/A

13.  Event Name: DESTINO USA '96
(U.S. travel and tourism)
Event Locations: Santiago, Chile
Dates of Event:  April 22, 1995
U.S. Recruitment/Promotion:  Conex Promotions
Tel:  (305) 661-7650; Fax:  (305) 661-7399
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