Chile during the Cold War Prior to

Chile during the Cold War • Prior to the Post WWII years, Chile was controlled by populist regimes. • After WWII there was a shift politically. – There would be a political battle between the right, , left (socialism and communism), and the center.

Carlos Ibáñez del Campo • Ibáñez was a former populist leader of Chile – He was elected once again because of the repressive tactics of the Videla gov’t (along with inflation & frozen wages) • Ibáñez ran on a populist ticket once again – He promised a minimum salary, family allowance for workers, & to listen sympathetically to wage demands – There were issues with this populism: • He sought loans from North America and the IMF (seen as an extension of US economic and political power) • He cut real wages • Harsh repression to deal with labor unrest – He ended up alienating the Chilean people

1950’s Elections • 1958 – Many parties are running • Jorge Alessandri: ran on a combined conservative and liberal ticket • Salvador Allende: FRAP; Socialist-Communist alliance • Eduardo Frei: Christian Democrat – Results: • • Alessandri: 31. 6% of vote (wins by plurality) Allende: 23. 9% Frei: 20. 7% 18. 8% went to others What does this election prove about the voters of Chile?

1950’s Elections • Alessandri as president – A true representative of conservative political and economic thought • Free enterprise • Open door to foreign investment – Copper • Alessandri tried to get US companies to increase investment in Chilean copper • Chilean nationalists were not happy – They wanted the US businesses expropriated (does not happen under Alessandri)

1950’s Elections • Alessandri put Chile under the Alliance for Progress in an attempt to help the people of Chile – The US were cool with it because they were worried Chile could become another Cuba

Early 1960’s Political Shift • Near the end of Alessandri’s time as leader there were four main political groupings – Right: included conservative and liberal parties – Centrist radicals – Marxist Left: communists and socialists – Christian Democrats: located in the center

1964 Election • The right, radicals, & Christian Dems all back the same candidate: Eduardo Frei – They called this movement the “Revolution in Liberty” • The Left had Allende How will this vote differ from the previous election?

And the winner is… • Frei with 56% of the vote – They were successful in painting Allende and FRAP as an extension of Moscow – It also helped that Frei received over 50% of his campaign funds from the CIA

Frei’s leadership • Main issue: Copper (again) – Chilean gov’t would buy into copper companies and reinvest profits in expanded facilities • Left attacked this plan as selling out (wanted nationalization) • The US kept a close watch on Frei – They wanted to maintain the Alliance for Progress and the loans to Chile • It was not going as Frei had hoped. He would lose out to reforms made by others in the Revolution of Liberty. • The Revolution of Liberty was falling apart amidst disagreements

1970 Election • Resembled 1964 with the other parties back in – Christian Dems: Radomiro Tomic-leftist and would not work with right – FRAP under new name Unidad Popular (UP): Allende – Right: Allesandri • Allende wins with 36. 3% of the vote – Confirmed by Congress of Chile For Nixon’s involvement in the Allende regime turn to page 354 in your text

Chile under Allende • Gov’t created massive public spending – On labor projects • • Housing Education Sanitation Health – Worker income rose 50% in Allende’s first year!!

Chile under Allende • This increase for workers & the appeal to women (low-income milk distribution, grocery coops) led to support for Allende

Chile under Allende • Problems arise – US economic war on Chile’s fragile democratic socialist experiment • US covertly – embargoed Chilean loans, imports, & exports – After an expropriation of a US business the flow of private investment capital stopped – This war would force Allende to stop paying off the national debt. He will manage to reach an agreement with US creditors.

After year one… • Economic stagnation & rise of inflation • Popularity remained high, but his trouble lied in attempting to appease both the lower and middle classes • Expropriation of businesses alienated small and medium sixed business owners who employed 80% of the population. – State enterprises were poorly managed.

After year one… • Socialist gov’t did not solve agrarian issue – Remained inefficient • By fall of 1972, the gov’t faced an economic and political crisis – The Chilean oligarchy (who were angered by the socialist movement) and the US would look to take advantage

After year one… • US spent over $8 million to destabilize the Allende regime (great quote on p 356) – All the disruption by the US and the fact that the upper class controlled most media made it impossible for Allende to win over the middle class – The economic crisis was jumped on by the opponents

9/11/1973 • Military will back someone else (Pincohet) and overthrow Allende – Allende commits suicide during raid on presidential palace The US heavily influenced the Chilean military.