Evening star., 1954-12-19
Chile in Ferl11ent-
Riehtist Dictatorship, Not Red Tokeover.
Seen as Top Danger in Elongated Nation
By Michoel Lever

Chile, the elongated republic on the
western coast OF South America. Is
Ia such bad political and economic
shape today that some observers
zee the makings Of another Guate-
mala.
But. critical as Chile's position is,
the likelihood of its becoming a
Communist foothold in the Western
Hemisphere seems remote at the
present time. The Communists are
active. to be sure. but the trend in
Chile today appears to be toward
an fashioned dictatorship of the
right. led by crusty old President
Carlos Ibanez del Campo.
Chile outlawed the Communist
Party IN 1948, but Communist SYM
pathisers are still trying to infiltrate
trade unions and universities. Tend
ing 10 counteract their efforts are
Chiie's deep = rooted democratic
tradition and the respect of
Chileans for law and government
institutions. There Is no discernible
Communist inflltration in govern
ment. And the armed forces, key
to any seizure Of power. are almost
fanatically anti-C Communist in their
thinking. although not necessarily
opposed to a takeover from the
right.
Ex- Dictotor
Favoring such a takeover is PreSi-
dent IbaneZ' need to cope quickly
and drastically with an increasingly
difficult political and economic situa-
tion and his own mentality. He
gave Chile q dictatorship once be-
fore and nobody denies that he may
do it again, particularly since Con-
gress recently rejected the state Of
siege-modified martial law-with
which the President Is trying to
hold things in check.
Chile's turbulent political scene
stems in large part from its cur
rent economic woes. For years the
country has been plagued by chronic
imitation and skyrocketing living
costs, shortages of foreign exchange
and tagging industrial and agri-
cultural production.
Once an exporter of agricultural
produce. Chile today must spend
from $40 million to $50 million a
year of scarce foreign exchange in
importing wheat. beef, cotton, oils
and other products to meet domestic
needs. Food shortages and high
prices have been reflected in dis
content, unrest and strikes through
out the country.
Splinter Porties
Complicating the political picture
Is an overabundance of political
parties, in constant friction or un-
easy coalition with one another.
which makes it difficult for any one
party to hold a majority in Con-
gress. Lack of such a majority has
been a handicap to President Ibanez
in tackling economic problems.
Senor Ibanez won the presidency
in 1852 on. an anti-inflation pro-
gram. Yet imitation is still rife in
the country and the cost Of living
was up so per cent in 1858, higher
than it ever had been before. Dwin-
ding sales Of copper. on which Chile
depends for most of it's foreign ex-
change, added to the distress.
President Ibanez inherited lop-
sided economy resulting from over
emphasis on industrial development
and neglect of agricultural devel-
opment. Chile's steel plants in re-
cent years reached the point where
they could meet most domestic
needs and even export to other
areas. principally Argentina, in bar
ter for wheat and beef.
Oil was discovered In remote
TERRA del Fuego and a new refinery
is soon to be opened near Valpa-
raiso. Two-thirds of the country
was electrified. and a $40 million
paper and pulp mill soon will begin
production near Conception. Many
smaller derivative industries came