The Election of Salvador Allende
- In 1970, Salvador Allende, a Marxist, was elected President of Chile, leading the Unidad Popular (UP) coalition.
- Economic Reforms: Allende's government nationalized key industries, including copper mines owned by US companies like Anaconda and Kennecott.
- US Economic Interests: American companies had over $1 billion invested in Chile, raising concerns about nationalization and loss of revenue.
A pluralitymeans winning the most votes, but not a majority. Allende won with 36%of the vote.
US Economic and Security Concerns
- Economic Interests: The US feared the loss of revenue from nationalized industries.
- Security Concerns: Chile housed intelligence stations monitoring Soviet activities. The US feared a domino effect of Marxism in South America.
Henry Kissinger, US National Security Advisor, believed Chile posed a greater threat than Cuba because Allende was democratically elected.
US Covert Operations and Economic Pressure
- CIA Involvement: The US used the CIA to:
- Influence Congress: Attempted to block Allende's confirmation.
- Encourage a Coup: Sought military intervention.
- Economic Pressure: The US:
- Cut off economic assistance.
- Blocked loans from international banks.
- Discouraged foreign investment.
Nixon instructed the CIA to make the Chilean economy "scream" to destabilize Allende's government.
Allende's Economic and Social Reforms
- Nationalization: Copper mines, banks, and large estates were nationalized.
- Populist Measures: Prices were frozen, and wages were raised.
- Challenges:
- Land Seizures: Peasants seized land, reducing food production.
- Industrial Decline: Worker-controlled industries saw decreased output.
- Inflation: Reached 500%, leading to shortages.
Unidad Popular tried to maintain relations with the US while expanding ties with socialist countries like Cuba and the Soviet Union.
