Evening star., 1949-02-27

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,uth of the border have published
But so far only the government
able in sufficient quantities to fill
the needs. Apparently they are
thoroughly aware of the fact that
today new private capital is hesi-
tant about going into any Latin
American country. Memories Of
the appropriation of the oil in
dustries in Mexico and Bolivia,
and. more recently. the national
tstic trends in Argentina and 9TH
ers, all tend to discourage private
capital.
Economic Outlook
Chileans are hopeful that the
March 9th congressional elections
will bring about a calmer atmos-
phere in the political field. The
fact that the Gonzalez regime de-
pends for its support in Congress
upon a very loose coalition of a
half dozen "so-called left-of-
center" or. more accurately. ultra
liberal parties" has not inspired
too much confidence in the out
look for political stability. much
less an orderly economic future.
The general economic outlook is
substantially as follows: Copper
and nitrate are likely to continue
in great demand. If this were not
the case, the heads of the two
industries would not be planning
to spend tens of millions of dol
lars in undermining their produc-
tive facilities. Large exports of
these products mean larger gov
eminent income and full employ
ment for industrial workers
The governments firm fight
against communism. and the effort
to break the hold of Communists
and extreme leftists on labor
unions has had a stabilizing effect
in these principal industries. How
ever. at the moment, labor unions
at the copper mines are beginning
to make new and what both
Chileans and foreigners agree are
unwarranted demands for higher
wages and new social benefits.
Except for the oil industry in
Venezuela, the United States
operated copper and nitrate COM
panies in Chile already pay about
the highest wages of any industries
on the South American continent.
And Chilean social insurance and
welfare laws for workers. especial
ly in foreign concerns, are among
the most advanced and exacting
in all the world. Yet" as one
copper official, a Chilean. expressed
it. "the only things they are not
asking in their new demands is
! that we turn over the plants and
the entire management to them
Food Problem
In spite of the high income from
the tax on copper and nitrate
exports, there is not enough dollar
exchange to take care of govern
mental obligations abroad and also
provide sufficient exchange for
private companies to purchase all
the new equipment they need and
the stocks they must import, much
less to send out their earnings.
Every one insists that until addi-
tional productive enterprises are
opened up and developed, this will
continue to be the case.
Exchange to cover substantial
amounts of earnings has been
made available for some COM
panies in recent months. One
electrical power company that had
struggled for several years before
and during the war to get funds
for the purchase of new equip
ment and to send out something
on it's vast investment has recently
been able to get several million
dollars. This" said one of the
company officials. sis due to the
present efficient, businesslike ad-
ministration of the Ministry Of
Finance"
The most serious of all the diff
culties confronting Chile is the
necessity of importing large
amounts of food. Nearly half the
long. slim, $500 mile long country.
which seldom averages more than
100 miles wide. is dry. dusty
desert. although fabulously rich in
copper, nitrate and other minerals.
The agricultural industry is con-
fined to few fertile valleys in the
south central section, and much
of this must be irrigated. Except
for its timber resources and the
newly discovered oil deposits, the
far south is not suitable for agri-
culture because it lies on the edge
of the Antarctic.
Elections Due
AS one of the most far-seeing
Chilean businessmen, himself one
of the founders of the Presidents
own Radical Party. summed it up,
First of ALL" he said. IF we are
to expand our economy and i'm
prove our lot in general. there
must be a greater assurance of
political stability in the country.
This" he said. depends to a
large extent upon whether the
coming elections go off smoothly,
and whether the present admins
tration maintains the support Of
at least the Liberal and Demo-
cratic Parties. and also upon
whether it continues to fight to
stamp out communism. Even the
extreme Conservatives would have
to respect such a policy whether
they agreed with 1t or not"
Second" the Chilean went on,
IF we want more private capital.
the government will not only have
to carry out the main features Of
President Gonzalez five-polnt pro-
gram, but it will be compelled TO