US Investments in Chile
- Significant US Investments: Over $1 billion in sectors like copper, telecommunications, and manufacturing.
- Key Companies: International Telephone and Telegraph (ITT), Anaconda, and Kennecott.
Plurality: A situation where a candidate receives the most votes but not a majority.
Economic Policies Under Allende
- Nationalization: Complete takeover of foreign-owned industries, including copper mines.
- Populist Measures: Price freezes and wage increases to boost consumer access.
When analyzing economic policies, consider both short-term and long-term impacts. Nationalization may provide immediate benefits but can also lead to reduced foreign investment.
US Economic and Covert Actions
Economic Pressure
- Aid Withdrawal: The US cut off $70 million from the Alliance for Progress.
- Loan Blockades: Prevented Chile from accessing funds from the World Bank and other institutions.
- Discouraged Investment: Deterred foreign companies from investing in Chile.
The US blocked a World Bank loan intended for Chile's infrastructure development, further straining the economy.
Covert Operations
- CIA Involvement: Funded opposition parties and media.
- Economic Disruption: Supported strikes, such as the 1973 truck drivers' strike.
- Political Manipulation: Attempted to influence the Chilean Congress to prevent Allende's confirmation.
The Alliance for Progress was a US initiative to promote democracy in Latin America through economic cooperation and social welfare programs.
The Role of the Chilean Military and Middle Class
Internal Opposition
- Middle Class Fears: Concerned about losing control and economic stability.
- Military Intervention: Initially hesitant, but growing fears of social breakdown led to action.
It's a common misconception that the US alone orchestrated the coup. While US support was significant, internal factors like military and middle-class opposition were also crucial.
The 1973 Coup
- Military Action: Led by General Augusto Pinochet, the military seized control on September 11, 1973.
- Allende's Death: Allende died during the coup, reportedly by suicide.
