Chile: the balanced view : a recopilation of articles about the Allende years and after

THE STRUGGLE FOR SURVIVAL Thethird period of Allende's regime, marked by economic chaos and the government's struggle for survival, began afterthe massive strike of October, 1972. By the last part ofthat year, it was clearthat the economic plans ofthe Unidad Popular had not worked and that it would be counter-productive to continue accelerating the pace of reformo The economic problems of 1972 that are evident in Tables 1 through 18 produced a situation that resulted in the rationing of many items by 1973, including bread, Actually, as early as late 1971 there had been marches in Santiago againsl shortages and the growing black market.(39) However, these were mi Id compared to the severe food shortages and black market that the country begar} to experience during late 1972 and early 1973, By January, 1973 foodstuffs of all sorts, not to mention durable goods, were in scarce supply. Such essential items as toilet paper, toothpaste, meat, bread, cooking oi 1, and sugar would often be unavailable for days and, in some cases, for weeks at a time, The reappearance of scarce items in the market would on occasions cause scuffles as people vied for a place in line to buy half a liter of oil or a kilo of meat. Overall, inflation reached 180.3 percent in 1972, with food prices alone rising 258.1 percent(40) Given the seriousness of the shortages, the government announced in January, 1973 that a policy of rationing would be put ¡nto effect for such essential items as soap powder, meat, cooking oil, white flour, and numerous other items numbering about 32 in aIL(41) In an effort at slowing down the rapid pace of change that had seriously debilitated the Chileaneconomy, in February of 1972 a joint session of both houses of the Chilean Congress approved a constitutional amendment requiring specific legislation lO be pas– sed by Congress for any future state take-overs of privately owned firms.(42) This legisla– tion was aimed al preventng the Unidad Popular from continuing its policy of quasi-Iegal requisilions by staging pOlitically motivated strikes during which the workers upon orders from the Marxist dominated union hierarchy would demand thatthe government "intervene" in a company for the sake of the nation,(43) This legislation did no!, however, slow down the many legally questionable requisi– tions, interventions, and expropriations, The President and his cabinet chose instead to oppose and on occasions ignore the actions of both Congress and the courts. For example, at one point the Secretary General of the Government, Aníbal Palma, refused to obey an Appeals Court decision ordering him to allow a conservative radio station to resume broadcasting after it had been ordered closed by the government(44) Allende also refused to either promulgate or submit lo the people In a plebiscite the aboye mentioned legislation passed by a majority of both H....uses of Congress requiring expropriations to be approved by that body, The legislation had defined the"three areas of property" outlining what, when, and how expropriations were to be carried out. Not wanting to see his power to expropriate limited by law, Allende vetoed the legislation, claiming that Congress could over-ride his veto only by a two-thirds vote of Congress,(45) However, Allende's critics charge that perhaps his most serious violation ofthe spirit ofthe constitution was his employment ofthe "decree of insistence" to carry out expropriations. In effect, this Presidential power allowed (39)'For Mieles on the black market see El Mercurio, January 13, 1973. p. 3: and Ercilla, January 17-23, pp. ·18~1. . (40)The author personally witnessed the events described~ See Table 12 for inflation figures lor 1972. (41}On January 10,1973 the government announced a plan for rationing all essential lood ite'ms. See Centro de Estudios de la Revolución, N.O 9 (Enero y Febrero, 1973), p, 3. . (42)Bolsa Review, VI (March, 1972) p, .159. See also El Mercurio, December 2,1972, p. 27, and January 13, 1973. p, 1; and Chile Hoy, Apri119-26. 1973, pp. 15-17, and June 1-7, 1973,p. 5. for articles about the conflict between the government and oppositjon over expropriations and the legislation designed to control them, (43)Numerous movie theaters were taken over in this way, La Tercera de la Hora, May 29, 1973. p, 11. (44)Ercilla, June 13-19, 1973, pp, 7-11; and June 27 to July 3, 1973. pp, 7-9. Mr, Palma later compliéd with the cóurt's order, . (45jlbid. For more on the controversy surrounding this executíve-Iegíslanve struggle over the three areas 01 pro'perty, see alsoLa Tercera de la Hora. June 6, 1973. p, 11: and Qué Pasa, May3. 1973, pp: 7-9. Ses a'lsoChile Hoy, April19-26. 1973. pp, 15-17: 189