14-00000 cere met Ahan coe erenmnanrmnenctnrn sere * cece ee a ect a ete a A 2 em mien oc emer - OVER. LAST YEAR'S LEVEL AND. PRODUCTION WILL PROBABLY REACH A RECORD ¥ , 7 ~ “ OUTGOING SAGE SB «638: mn feng ngs ite SONAL CENTER USE OMLT : enti  e core weatenare  meee «bea bee ae ere me ve tee wee “ Ce “OF ‘oo 0 G8 0 8. 2 SECRET — ee sn sawamca insta : Sek seud samuains moe AFT . sare toma SRoUe- Cs ere . . a meverue sefemence mnnes STAFF a . | PERECTOR os ae co O wee OISSEM BY: CONF; os INFO: FG ol ae . ; : :g “ng 08k a OD cerean a PER “AMR: Dvn Ve COPPER PRODUCTION HAS stad INCREASED. BORE THAN SOZ% © a . 750,000 TONS In 197% DESPITE SPORADIC SHORTAGES OF SPARE PARTS AND SERVICEABLE VEHICLES - FARM ‘OUTPUTS. HOWEVER» rs NOT. EXPECTED TO” “RECOVER FULLY UNTIL THE 1974/25. HARVEST. so THAT AGRICULTURAL | IMPORTS 4. PARTICULARLY GRAIN WELL CONTINUE. To BE A DRAIN ON CHILE'S _ FOREIGN RESERVES. & THE JUNTA HAS DEMONSTRATED Good FAITH IN THE TREATNENT OF. FOREIGN EQUITY AND HAS LINED: up SUFFICIENT FOREIGN CREDITS TO ENABLE i TO PURCHASE CAPITAL GOODS: AND FINANCE THE CURRENT PAY~ NENTS GAP.” THE GOVERNMENT HAS ALSO” UNDERTAKEN TO SETTLE ouT- STANDING COMPENSATION CLAINS ENANATING FROM ALLENDE NATIONALIZA~ 7 TIONS. STATING THAT IT WILL EIVHER RETURN INTERVENED FIRMS TO THE PRIVATE SECTOR: OR AS IN THE CASE OF LARGE COPPER MINES. ADEQUATELY — FORMER PRIVATE BANKS UTLL ALSO BE. eo. CONPENSATE PREVIOUS OUNHERS- | RETURNED TO THEIR FORMER OUNERS 4 BUT PROGAGLY UITH SOnE. FORNULA — INVOLVING WORKER PARTICIPATION IN BARK NANAGENENT - ‘THERE ARE ALSO STRONG INDICATIONS OF REWEUED INVESTOR. CONFIBGENCEs AND PRIVATE BATEs ORIG: UNIT: ExT: REPRODUCTIGN SY OTHER THAN THE ESSUING OFFICE IS PROMIBITED = -E 2 ‘Papoer CL BY: US7SSb - Beeadtane oeerta® eh BN RY APRONS SECRET
74-00000 * ao tae ae ne NEE me ene me et AR! eo A At ee OGD SER tote Rie NORE He #o uant Ec At yeas At oe Beatin eee eae te ee see ee ’ OUTGOING MESSAGE = a nf ee pc « . . Sarva CaHare @ Vos Gane : ; , -é * i - tho EE onF Oo BO 0 og 0 ng SECRET. a . . 109 Siiais teaneoi ine mepreatom DATE: Teed Geer : . ene : PERCALE Mele oe AReG AOS eD STAFF C Po : - -. DIRECTOR: - ; en ; : GO woes DISSE BYs - COMP: . : INFO: Fie : ‘ 7 if] ao ieoen . , oo . . G ettuew ro PER GA1/O — 74169 0 one = # FOREIGN INVESTMENT If CHILE IS EXPECTED TO GROW SUGSTANTIALLY SURING L974. 4. INTERNALLY» THE ELINILATION oF PRICE CONTROLS AND ApsusT- MENT OF EXCHANGE RATE HAS PRACTICALLY ELINTUATED THE ONCE FLOURISH- ING BLACK MARKETS IH connopttzes AND FoREtGn EXCHANGE HOWEVER, THE 2. BuRDEN OF AUSTERITY On CHILEAN CONSUMERS HAS BEEN HEAVY. . DESPITE: HEALTHY. INCREASES IH WAGES AND RENEWED CONFIDENCE BY BUSINESSHEN, WORKING CLASS CONSUMERS FIND a DIFFICULT TO AFFORD THE BAREST | NECESSITIES» AND WORKING CLASS LABOR IS TAKING A WATT AND SEE. ATTITUDE» THERE IS+ HOUEVERs fo ORGANIZED RESISTANCE TO THE ‘unt “OR ITS PROGRANS: | SOnE POLITICAL FACTIONS» PARTICULARLY THE CHRISTIAN DEMOCRATIC PARTY {PDCF ARE. GRUReL IHG BUT THIS DISSATIS , FACTION IS LARGELY DUE TO GOMERUHENT EFFORTS TO SET UP NEU Hon- " POLITICAL-PARTY MECHANISHS FOR EZACHING THE PUBLIC. —_  *UGe. GOVERNMENT PRECESSING? oF CONGRESS AMD ALL POLITICAL PARTIES HAS CREATED A POLITICAL VACUUM I! CHILE- THE GOVER! HENTs WITCH HOLDS THE POLITICAL PARTIES LARGELY FESFONSIQLE FOR CHILE?S CURRENT PLIGHT. IS TRYING TO FILL THIS VOID GY AN INTENSE USE. OF: DATE: ORIG: | Want: i : wie @ * ~ ~ hd ~ e es - ~~ Ca COG Er AHO hy EHO CE BS "ag int Stare 1800. fae . z REPROOUCTION BE WITHER THA FRE ISS OFFICE 1. PED ES Ee 4 ; - i PoEF ; CL By: GS7556b boast Re S AM OFFER 8 MA Gat oy BORE 1 “REGRET ® On Ly 2 tr ire
14-00000 who, BA ee nd eS cern ca NO le ek Ah naan a en mnt nee se ta alee eo nce OUTGOING “ESSAGE _ | Staal CRATER USE ONLY aR at) ace. 08 i, “nF @ a 0 O80: 2.0 er  SEcRET rs an 8 B8AGe HaNoL ERs ENCATER Bate. tine amour, . Se | ER0s08 Os spat ats mnEOES STAFE , a DIRECTOR. ... Coe, a . Be Pe 7 O acces - O1SSEM BYs conr: tot INFO: FILE ee O nonce | : 4999NL8  g omas o. “CIVILIAN ADVISERS 70 ASSIST THE GOVERNMENT MINISTRIES. THIS , Mo Bath ie PHENOMENON Is HOST: APPARENT IN THE AREAS. OF ECONONTC. POLICY AND TH. THE: IHPORTANCE MB | - sucH TECHNICAL FIELDS AS ‘Pusetc HEALTH “AND HOUSING. (OF THE GROUP. OF ECONOMIC ADVISERS. HEADED BY. RAUL ‘SAEZS FOR EXAMPLE IS UELL KNOUN.- THE MINISTRY. ‘OF HEALTH. HAS Ait ADVISORY BOARD - DRONINATED: BY THE MEDICAL ASSOCIATION’ WHILE: THE ‘MINTSTRY OF . “HOUSINGS BOARD IS LARGELY CONTROLLED BY THE ORGANIZATION REPRESENT~ ING PRIVATE ‘CONSTRUCTION FIRMS» SINELARLY> ALMOST EVERY. AINISTRY. AND NANY. AuToNonoUS. AGENCIES HAVE PERMANENT CIVILIAN ADVISORY BOARDS COMPOSED OF REPRESENTATIVES oF GROUPS WHOSE WELFARE ts. - AFFECTED BY: THE AGENCY'S ACTIVITIES. “Abe IN ADDITION To THESE “CIVILIAN ADVISORY BOARDS. THERE ARE A LARGE NUMBER OF "STUDY cOMMISSTONS” THROUGH WHICH CIVELIAUS CAN EXERT THEIR INFLUENCE. BEST KNOUN OF THESE IS THE GROUP SF TITER. NATIONAL LAWYERS WHICH IS DRAFTING A NEW CONSTITUTION, BUT THERE’ | ARE OTHER GROUPS WORKING ON A. NEW HINTING cone STUDYING THE EDUCA- TIONAL SOYSTEN, COLLECTING INFORUATION On uy: EDUNPLOYMENT 4 URITING A _ STATUTE FOR WORKER PARTICIPATION IN GUSINESS ENTERPRISES» AND Of re: ORG: UNIT: EXT: SHORES TG OF FEE OS AP MIE APOE BFF ow RCPRODUCTION BY OTHER THAN THE IssUING OFFICE Is PROWBITECO «=f 2 © «HPDET ; CL BY: 637586 9.8 AsiNs COE EE Crassec eran SECRET
74-99000 Y OUTGOING MESSAGE” j DIGNAL CENTS USE ONLY : * aad €o4 ae tS re aaah a a os SF are 1 Rea sir | DIRECTOR ES tee. nr oe : eo 0 woe, © :dOISSEM BY. - : of . ; . , - a 0 metuanra PER . peLviNe INTO A DOZEN OTHER TOPICS» . a, ms L2. ALTHOUGH SOME ‘CHRISTIAN “DENOCRATS: HOLD INFLUENTIAL GOVERN= nent POSETIONS. MOST CIVILIAN ADVISERS ARE EITHER CONSERVATIVE OR 7 APOLITICAL: LACK OF MORE UIDESPREAD PARTICIPATION: BY CHRISTIAN TENOCRATS MAY CREATE PROGLENS FOR THE GOVERMENT IN THE FUTUREs “ESPECIALLY SINCE ORGANIZATIONS REPRESENTING. WORKERS. CAMPESINOS. AWD POBLADORES {WHICH FORMERLY. SUPPORTED EITHER THE CHRISTIAN DEMOCRATIC PARTY {PDC} OR THE ALLENDE GOVERNMENT? ARE SO FAR cae  TNADEQUATELY REPRESENTED ON ADVISORY CouNcILS- THE GOVERNMENT HAS | ESTABLISHED UNITS ADDRESSED TO YOUTHS UONEts GUILDS AND NEIGHBOR- . HOOD CIVIC GROUPS IN THE SECRETARIAT GENERAL OF GOVERNTENT» AND HOPES THAT THESE WILL SERVE AS VEHICLES. FOR GOVERNMENT-T0-PEOPLE COMMUNICATION. 13. THE JUNTA LEADERS VIEW WITH DISTRUST ALL PDC EFFORTS TO. BIN NEU POLITICAL ADHERENTS FROM THE WORKING CLASSES UNICH FORMERLY SUPPORTED ALLENDE'S UP COALITION AND REPORTEDLY BELIEVE THAT THE PDC IS NOT RESPECTING THE POLITICAL RECESS- THE JUNTA IS PARTICULARLY CONCERNED BY THE POSSIBILITY THAT THE PDC'S LEFT WING DATE: ORIG: GRIT: “EXT ; wwe wo @ es ow Sa ° e 2 wo “ . “ —<—ee- . . wwe N w ow 4 i Gave ssa organ EERO Mermea GOreCsss § - Pe OMY ATE. OPE CRE i | pam toe caren REPRODUCTION BY OTHER THAN THE 15° suiué orrier “sercesutro |B A PDET SECRET 7 CL BY: O"75Sb