Chile under Allende
Salvador Allende was the president of Chile from 1970 until 1973, and head of the Popular Unity government; he was the first Marxist ever to be elected to the national presidency of a democracy. His presidency was ended before he could complete a full term in office.
During his tenure, Chilean politics ascended to a state of civil unrest amid strikes, lockouts, U.S. economic sanctions, an attempted coup in June 1973, the in which the majority of Chile's Chamber of Deputies called for the military to restore order, and finally a successful coup on September 11, 1973, during which Allende committed suicide. The military removed the Allende government and established a military dictatorship under General Augusto Pinochet, terminating the period of Chilean history known as "Presidential Republic" (1925-1973).
Allende becomes president
In the 1970 election, Allende, running with the Unidad Popular (UP or Popular Unity) coalition, received a plurality with 36.3% of the vote. Christian Democrat Radomiro Tomic won 27.9% with a very similar platform to Allende's. Both Allende and Tomic promised to further nationalize the mineral industry and redistribute land and income among other new policies.
Conservative former president Jorge Alessandri received slightly under 35.8% of the vote.
According to the constitution, Congress had to decide between the two candidates who had received the most votes. The precedent set on the three previous occasions this situation had arisen since 1932 was for Congress simply to choose the candidate with the largest number of votes; indeed, former president Alessandri had been elected in 1958 with 31.6% of the popular vote.
In this case, however, there was an active campaign against Allende's confirmation by Congress, including clandestine efforts to prevent him taking office, and his presidency was ratified only after he signed a "Statute of Constitutional Guarantees". This statute was suggested as a means to convince the majority of Christian Democrat senators that favoured Allessandri, as they doubted Allende's allegiance to democracy, or at least the UP's. After signing the statute, members of the Christian Democrat party in the Senate gave their vote in favor of Allende. It has been argued that given that less than the majority of the voters voted for him, Allende did not have a clear "mandate" to embark in the policies put forward on his program. But the legality of the election itself is not in dispute.
"The Chilean Way to Socialism"
In office, Allende pursued a policy he called "La via chilena al socialismo" ("The Chilean Way to Socialism"). This included nationalization of certain large-scale industries (notably copper), of the health care system, continuation of his predecessor Eduardo Frei Montalva's policies regarding the educational system, a program of free milk for children, and land redistribution. The previous government of Eduardo Frei had already partly nationalised copper by acquiring a 51 percent share in foreign owned mines. Allende expropriated the remaining percentage without compensating the U.S. companies that owned the mines.
Chilean presidents were allowed a maximum of 6 years, which may explain Allende's haste to restructure the economy. Not only did he have a significant restructuring program organised, it had to be a success if a successor to Allende was going to be elected.
At the beginning there was broad support in Congress to expand the government's already large part of the economy, as the Popular Unity and Christian Democrats together had a clear majority. But the government's efforts to pursue these policies led to strong opposition by landowners, some middle-class sectors, the rightist National Party, financiers, and the Roman Catholic Church . Eventually the Christian Democrats united with the National Party in Congress.
The land-redistribution that Allende highlighted as one of the central policies of his government had already begun under his predecessor Eduardo Frei Montalva, who had expropriated between one-fifth and one-quarter of all properties liable to takeover [Collier & Sater, 1996]. The Allende government's intention was to seize all holdings of more than eighty basic irrigated hectares [Faundez, 1988]. Allende also intended to improve the socio-economic welfare of Chile's poorest citizens; a key element was to provide employment, either in the new nationalised enterprises or on public works projects.
Towards the end of 1971, Fidel Castro toured Chile extensively during a four-week visit. This gave credence to the belief of those on the right that "The Chilean Way to Socialism" was an effort to put Chile on the same path as Cuba.
In the first year of Allende's term, the short-term economic results of Minister of Economics Pedro Vuskovic's expansive monetary policy were unambiguously favorable: 12% industrial growth and an 8.6% increase in GDP, accompanied by major declines in inflation (down from 34.9% to 22.1%) and unemployment (down to 3.8%). However, these results were not sustained and in 1972 the Chilean escudo had runaway inflation of 140%. The average Real GDP contracted between 1971 and 1973 at an annual rate of 5.6% ("negative growth"), and the government's fiscal deficit soared while foreign reserves declined [Flores, 1997: title missing from References]. The combination of inflation led to the rise of black markets in rice, beans, sugar, and flour, and a "disappearance" of such basic commodities from supermarket shelves.
In addition to the earlier-discussed provision of employment, Allende also raised wages on a number of occasions throughout 1970 and 1971. These rises in wages were negated by continuing increases in prices for food. Although price rises had also been high under Frei (27% a year between 1967 and 1970), a basic basket of consumer goods rose by 120% from 190 to 421 escudos in one month alone, August 1972. In the period 1970-72, while Allende was in government, exports fell 24% and imports rose 26%, with imports of food rising an estimated 149% [figures are from Nove, 1986, pp. 4-12, tables 1.1 & 1.7]. Although nominal wages were rising, there was not a commensurate increase in the standard of living for the Chilean population.
The falls in exports were mostly due to a fall in the price of copper. Chile was at the mercy of international fluctuations in the value of its single most important export. As with almost half of developing countries, more than 50 per cent of Chile's export receipts were from a single primary commodity [Hoogvelt, 1997]. Adverse fluctuation in the international price of copper negatively affected the Chilean economy throughout 1971-2. The price of copper fell from a peak of $66 per ton in 1970 to only $48-9 in 1971 and 1972 [Nove, 1986]. In addition to the hyperinflation, the fall in the value of copper and lack of economic aid would further depress the economy.
Despite declining economic indicators, Allende's Popular Unity coalition actually increased its vote to 43 percent in the parliamentary elections early in 1973. However, by this point what had started as an informal alliance with the Christian Democrats Federal Research Division of the Library of Congress: Chile - Constitutional History - Development and Breakdown of Democracy, 1830-1973, accessed on Dec 11, 2006 was anything but that. The Christian Democrats now leagued with the right-wing National Party to oppose Allende's government, the two parties calling themselves the Confederacion Democratica (CODE). The conflict between the executive and legislature paralyzed initiatives from either side.
Relations with Soviet Union
Allende's predecessor President Frei improved relations with the USSR. In February 1970, President Frei's government signed Chile's first cultural and scientific agreement with Soviet Union.
Allende's Popular Unity government tried to maintain normal relations with the United States. When Chile nationalized its copper industry, Washington cut off U.S. credits and increased its support to opposition. Forced to seek alternative sources of trade and finance, Chile gained commitments from the USSR to invest some $400 million in Chile in the next six years.
Allende's government was disappointed that it received far less economic assistance from Russia than it hoped for. Trade between the two countries did not significantly increase and the credits were mainly linked to the purchase of Soviet equipment. Moreover, credits from Russia were much less than those provided by China and countries of Eastern Europe. When Allende visited Soviet Union in late 1972 in search of more aid and additional lines of credit, he was turned down.
Allegations based on the handwritten notes of Mitrokhin have been made that Allende was connected to the KGB.The Times extract from the Mitrokhin Archive volume II, by Mitrokhin and historian Christopher Andrew [*].
Material based on reports from the "Mitrokhin Archive", the KGB said of Allende that "he was made to understand the necessity of reorganising Chile's army and intelligence services, and of setting up a relationship between Chile's and the USSR's intelligence services". It is also claimed that Allende was given $30,000 "in order to solidify the trusted relations" with him. According to Vasili Mitrokhin, a former KGB major and senior archivist in the KGB intelligence central of Yasenevo, Allende made a personal request for Soviet money through his personal contact, KGB officer Svyatoslav Kuznetsov, who urgently came to Chile from Mexico City to help Allende. The original allocation of money for these elections through the KGB was $400,000, and an additional personal subsidy of $50,000 was sent directly to Allende.
Historian Christopher Andrew argued that help from the KGB was a decisive factor, because Allende won by a narrow margin of 39,000 votes of a total of the 3 million cast. After the elections, the KGB director Yuri Andropov obtained permission for additional money and other resources from the Central Committee of the CPSU to ensure an Allende victory in Congress. In his request on October 24, he stated that the KGB "will carry out measures designed to promote the consolidation of Allende's victory and his election to the post of President of the country". In his KGB file, Allende was reported to have "stated his willingness to co-operate on a confidential basis and provide any necessary assistance, since he considered himself a friend of the Soviet Union". He willingly shared political information.
Andrew writes that regular Soviet contact with Allende after his election was maintained by his KGB case officer, Svyatoslav Kuznetsov, who was instructed by the centre to "exert a favorable influence on Chilean government policy". Allende was said to have reacted favorably.
Declarations from KGB General Nikolai Leonov, former Deputy Chief of the First Chief Directorate of the State Security Committee of the KGB, confirmed that the Soviet Union supported Allende's government economically, politically and militarily. Leonov stated in an interview at the Chilean Center of Public Studies (CEP) that the Soviet economic support included over $100 million in credit, three fishing ships , factories (as help after the 1971 earthquake), 3,100 tractors, 74,000 tons of wheat and more than a million tins of condensed milk.
In mid-1973 the USSR had approved the delivery of weapons to the Chilean Army. However, when news of an attempt from the Army to depose Allende through a coup d'etat reached Soviet officials, the shipment was redirected to another country.
United States opposition to Allende
The U.S. administration of U.S. President Richard Nixon, then embroiled in the Vietnam War and Cold War with the Soviet Union, was openly hostile to the possibility of a second Marxist regime (after Cuba) in the Western Hemisphere. There were clandestine efforts by the U.S. government to prevent Allende from taking office after election: On October 16, 1970, a formal instruction was issued to the CIA base in Chile, saying in part, "It is firm and continuing policy that Allende be overthrown by a coup. It would be much preferable to have this transpire prior to 24 October, but efforts in this regard will continue vigorously beyond this date. We are to continue to generate maximum pressure toward this end, utilizing every appropriate resource. It is imperative that these actions be implemented clandestinely and securely so that the USG and American hand be well hidden..."
Regarding the botched attempted-kidnapping and manslaughter of Chilean Army Commander Rene Schneider on October 22, 1970 (Schneider was a constitutionalist opposed to the idea of a coup preventing Allende from taking office or removing him after the fact), the Church Committee observed: "The CIA attempted, directly, to foment a military coup in Chile. It passed three weapons to a group of Chilean officers who plotted a coup. Beginning with the kidnapping of Chilean Army Commander-in-Chief Rene Schneider. However, those guns were returned. The group which staged the abortive kidnap of Schneider, which resulted in his death, apparently was not the same as the group which received CIA weapons." However, the group which killed Schneider had previously been in contact with the CIA. The agency later paid that group $35,000, according to the Hinchey report, "in an effort to keep the prior contact secret, maintain the good will of the group, and for humanitarian reasons." CIA documents indicate that while the CIA had sought his kidnapping, his killing was never intended.[https://www.cia.gov/csi/studies/vol47no3/article03.html Kristian C. Gustafson, Reexamining the Record: CIA Machinations in Chile in 1970] Public outrage over the killing of Schneider cooled sentiments for a coup, Mark Falcoff, Kissinger and Chile and neither the U.S. nor Chilean military attempted other removal actions in the early years of the Allende administration. On October 26, President Eduardo Frei (Salvador Allende was inaugurated November 3) named General Carlos Prats as commander in chief of the army in replacement of Rene Schneider. Carlos Prats was also a constitutionalist. Andrew J. Rhodes, Chilean Civil-Military Relations
With Allende in office, the U.S. reduced economic aid to the Chilean government.
In 1973, the CIA was notified by contacts of the impending Pinochet coup two days in advance, but contends it "played no direct role" in the coup. After Pinochet assumed power, U.S. Secretary of State Henry Kissinger told Nixon that the U.S. "didn't do it" (referring to the coup itself) but had "created the conditions as great [sic] as possible."
In October 1972, Chile saw the first of what were to be a wave of confrontational strikes led by some of the historically well-off sectors of Chilean society; these received the open support of United States President Richard Nixon. A strike by truck-owners, which the CIA supported by funding them with US$2 million within the frame of the "September Plan," began on October 9, 1972 El paro que corono el fin o la rebelion de los patrones, El Periodista, 8 June 2003 . The strike was declared by the Confederacion Nacional del Transporte, then presided by Leon Vilarin, one of the leaders of the far-right paramilitary group Patria y Libertad . The Confederation, which gathered 165 truck-owners trade-unions, with 40,000 members and 56,000 vehicles, decreed an indefinite strike, paralyzing the country.
It was soon joined by the small businessmen, some (mostly professional) unions, and some student groups. Its leaders expected to topple the government through the strike. Other than the inevitable damage to the economy, the chief effect of the 24-day strike was to bring the head of the army, general Carlos Prats, into the government as Interior Minister, as a sign of appeasementComienzan los problemas, part of series "Icarito > Enciclopedia Virtual > Historia > Historia de Chile > Del gobierno militar a la democracia" on LaTercera.cl. Accessed 22 September 2006.. Carlos Prats had succeeded General Rene Schneider after his assassination on October 24, 1970 by two groups, General Roberto Viaux and General Camilo Valenzuela, whom had benefitted from logistical and financial support from the CIA. Prats was a supporter of the legalist Schneider doctrine and refused to involve the military in a coup against Allende.
On June 29, 1973, a tank regiment under the command of Colonel Roberto Souper surrounded the presidential palace (la Moneda) in a violent but unsuccessful coup attempt that was defused by Army Commander-in-chief, General Carlos Prats. This attempted coup has come to be known as the Tanquetazo or Tancazo.
That failed coup was followed by a further strike at the end of July, joined this time by the copper miners of El Teniente as well.
In July 1973, the far-right paramilitary group Fatherland and Liberty (Patria y Libertad) received a plan from the Marines, who opposed the legalist Schneider Doctrine, to sabotage the country's infrastructures. The collaboration between Fatherland and Liberty with the Chilean Armed Forces increased after the failed October 1972 strike which had aimed at overthrowing the Allende administration. In agreement with the anti-Constitutionalist sectors of the military, the group assassinated on 26 July 1973 Allende's naval aide, Arturo Araya Quien mato al comandante Araya?, La Nacion, 20 March 2005 . The first sabotage was committed the same day. Others include creating a power outage while Allende was being broadcast Confesiones de un ex Patria y Libertad, TVN, 12 February 2006 .
On August 9, General Prats, a supporter of the Schneider Doctrine opposing military intervention in politics, was made Minister of Defense. Because of discontent from anti-Constitutionalist sectors of the military, he was forced to resign on August 22 of all of his functions, and replaced as Commander-in-Chief of the Army by General Augusto Pinochet.
On 22 August 1973 the Christian Democrats and the National Party members of the Chamber of Deputies voted 81 to 47, a resolution that asked the authorities to put an immediate end to breach[es of] the Constitution . . . with the goal of redirecting government activity toward the path of Law and ensuring the Constitutional order of our Nation, and the essential underpinnings of democratic co-existence among Chileans.
The resolution declared that the Allende Government sought . . . to conquer absolute power with the obvious purpose of subjecting all citizens to the strictest political and economic control by the State . . . [with] the goal of establishing a totalitarian system, claiming it had made violations of the Constitution . . . a permanent system of conduct. Essentially, most of the accusations were about the Socialist Government disregarding the separation of powers, and arrogating legislative and judicial prerogatives to the executive branch of government.
Finally, the resolution condemned the creation and development of government-protected [socialist] armed groups, which . . . are headed towards a confrontation with the armed forces. President Allende's efforts to re-organize the military and the police forces were characterised as notorious attempts to use the armed and police forces for partisan ends, destroy their institutional hierarchy, and politically infiltrate their ranks .
Two days later , Allende responded, point-by point to the accusations and, in turn, accused Congress of "facilitat[ing] the seditious intention of certain sectors" and promoting a coup or a civil war by "invoking the intervention of the Armed Forces and of Order against a democratically elected government". He pointed out that the declaration had failed to obtain the required two-thirds majority constitutionally required to bring an accusation against the president and argued that the legislature was trying to usurp the executive role.
Chilean democracy, he wrote, is a conquest by all of the people. It is neither the work nor the gift of the exploiting classes, and it will be defended by those who, with sacrifices accumulated over generations, have imposed it With a tranquil conscience I sustain that never before has Chile had a more democratic government than that over which I have the honor to preside. He concluded by calling upon the workers, all democrats and patriots to join him in defense of the constitution and of the "revolutionary process".''
In early September 1973, Allende floated the idea of resolving the crisis with a plebiscite. However, the Chilean military seized the initiative of the Chamber of Deputies' August 22 Resolution (which had implored Allende's military removal) to oust Allende on September 11, 1973. As the Presidential Palace was surrounded and bombed, Allende committed suicide.
1970 Chilean presidential election
Project FUBELT - codename for CIA operations to undermine Allende
Vuskovic plan - UP's economic policy
Chilean nationalization of copper
Salvador Allende - biography
Carlos Altamirano (secretary general of the Chilean Socialist Party)
1973 coup in Chile
Allende's death - controversy regarding his death
Augusto Pinochet - biography
Chile under Pinochet - aftermath of the coup
History of Chile
U.S. intervention in Chile
Simon Collier & William F. Sater (1996). A History of Chile: 1808-1994. Cambridge: Cambridge University Press.
Julio Faundez (1988). Marxism and democracy in Chile: From 1932 to the fall of Allende, New Haven: Yale University Press.
Anke Hoogvelt (1997). Globalisation and the postcolonial world, London: Macmillan.
Henry Kissinger (1970). National Security Decision 93: Policy Towards Chile, Washington: National Security Council.
Alec Nove (1986). Socialism, Economics and Development, London: Allen & Unwin.
Don Mabry (2003). ''Chile: Allende's Rise and Fall''.
An extensive Spanish-language site providing a day-by-day chronology of the Allende era. This is clearly a partisan, pro-Allende source, but the research and detail are enormous.
The August 22, 1973 document under which the Chamber of Deputies opposed the Allende regime. This is a solid translation of the document, although the introductory note is clearly that of an apologist for the coup.
Allende's August 24, 1973 response
National Security Archive's Chile Documentation Project which provides documents obtained from FOIA requests regarding U.S. involvement in Chile, beginning with attempts to promote a coup in 1970 and continuing through U.S. support for Pinochet
[[s:Salvador Allende: First speech to the Chilean parliament after his election|Allende first speech to Chilean parliament following the 1970 election]]
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